InSight

Divorce Playbook: Adequately insure any payments in the divorce settlement

Financial Planning Dentist

Often overlooked during the divorce, and somewhat difficult to remedy after the divorce is using insurance to back up any financial agreements you come to. Alimony, child support, college tuition, and property settlements are all insurable interests you have in your ex-spouse after a divorce. It’s important to confirm in the divorce settlement some insurance recourse is covered in the event of death and disability. Life and disability insurance policies can guarantee that these payments will continue despite an unexpected loss or injury.

If you are mid-divorce these policies can also be made a part of the agreement and you can request verification for these policies being in force. These policies can help you rest assured that the payments will be made regardless. 

If you are the party required to make these payments, there are several options available that will make varying financial sense. If your child is young, or the timeline for your payments is long you may consider whole life insurance as the cash value will have retirement strategies should the policy go unused.

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