What kind of life insurance divorce settlements are available?
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Written on: 03.11.2009 [16:34]
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Shay
Shay
Topic creator
Posts: 6
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My sister is getting a divorce and I'd like some advice on the kind of settlements that arise regarding insurance policies. Her husband had purchased life insurance to 'cover' her, but this is now a redundant idea... Does anyone have experience of life insurance divorce settlements? |
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Written on: 04.11.2009 [12:32]
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Carrick
Carrick
Posts: 3
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I wouldn't worry too much – as long as your sister ensures she employs a good lawyer, they should think all this through for her. Usually when a divorce settlement includes any kind of alimony or child support (does your sister have children?) then the court ensures there is a suitable life insurance in play that protects this financial assistance if your sister's ex-husband was to die. This ensures your sister's financial security and that of her kids. It is true however, that she will not necessarily receive a big payout on his death unless he is still supposed to be supporting her... Maybe she could invest some savings for her own security? |
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Written on: 17.11.2009 [10:09]
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Billy
Billy
Posts: 2
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I think she will definitely need to set up her own life insurance policy as I doubt they will offer this to her on a plate. But perhaps with a good enough lawyer she could try and demand that it be added in the terms that she will receive something upon his death. But as Carrick said, if he is no longer providing for her then they wont see the relevance to include her in the life insurance policy. |
