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Should Term Life Insurance Be Part of a Divorce Settlement?

2014 January 22

You should ask your attorney to have a term life insurance plan as part of your settlement, especially if you will be reliant upon your former spouse for support into the future. The court will create the “need” since you cannot apply for a policy without their participation in the application process. Your soon-to-be ex-spouse will have to complete and sign the application as well as take a brief paramedical exam to determine their own eligibility and cost. If there is a mandate to do this via the divorce decree, you can be assured that they will participate at this level. You will also want to make sure that you are listed as the owner of the policy so that you are the only one that can change the beneficiary designation and are notified in the event that the premium is not paid.