Divorce can be a difficult time both emotionally and financially for a family. However, one of the key financial concerns to remedy in that situation is life insurance.
Divorcing couples negotiate child support, alimony, outstanding debts and future expenses during the process. Financial planner Vince D'Amato wrote for California's Record Searchlight that all of those financial concerns could become even more problematic if one of the splitting parties were to pass away unexpectedly. Therefore, it is important for the spouse receiving alimony payments and child support to purchase a term life insurance policy that would cover them if the person paying those expenses dies prematurely.
"The receiving spouse may want to be the owner and the beneficiary of the policy to ensure that the premiums are paid and the policy does not lapse at an inopportune time. The issue of life insurance can be made a requirement in the divorce settlement if the payer spouse is reluctant to go through the underwriting process," D'Amato wrote.
Existing life insurance policies might also need to be settled in a divorce, something spouses should discuss with their attorney or legal representative, experts say.