Comments on: Life Insurance During Divorce

By: Term Life Insurance

Term Life Insurance — Tue, 25 Nov 2008 19:35:35 +0000

Having been through a divorce myself with life insurance naming my ex-wife as the beneficiary, I found your article very interesting and informative. Thank you for your insight.

By: Aaron

Aaron — Tue, 18 Nov 2008 22:16:13 +0000

Another option is to see if the life insurance company offers an irrevocable beneficiary designation. Sometimes if the other spouse won’t agree to insurance, even with a court ordered mandate, a good broker may be able to find coverage without their knowledge or consent. It’s a good idea to get life insurance quotes from a broker who might have multiple channels to work with.

By: Desmond

Desmond — Mon, 17 Nov 2008 19:19:35 +0000

Why is this better than a trust fund? It seems to me that the money spent on the premiums would be better if dropped into a protected trust. This way all of the money is recovered, without having to deal with an insurance company. Additionally, a trust could be established to avoid misuse when the money is taken out (by directing money for education or the like). I know that there must be some very good reasons for an insurance policy, as it has worked well for many of my co-workers and friends, I am just curious about the specific reasons.

By: Kim

Kim — Mon, 17 Nov 2008 19:15:53 +0000

Am I allowed to buy a policy on somebody without his consent? I doubt that my spouse would take out a policy on his own, but this sounds like a great idea. It would put me substantially at ease, and make things easier on all of us. It seems to me that unless he was there, I could not actually buy an insurance policy on him, and I doubt if I could talk him into sitting down with an insurance agent. I guess that my other problem would be his unhealthy lifestyle that may, in fact, lead to a premium that I quite frankly can not afford. Are there any policies that take this into account when setting prices?

By: Warren

Warren — Mon, 17 Nov 2008 19:13:18 +0000

Paula– how insensitive can you be? Yes, many people are able to keep civil with their exes, but many people simply cannot. In those cases, there is certainly nothing wrong with trying to protect your property and your investments. You are lucky in that you were able to stay friends with your ex. I have known many people whose divorces were very ugly, and it wasn’t by choice. Lawyers often coerce the two sides into being combative so they can get as much for their side as they can, and the pressure of divorce often drives people to do things they wouldn’t normally do. I also think it’s a shame when divorce comes to this, but to say it’s totally avoidable or that there is no need for the type of action brought up in this blog post is just irresponsible.

By: Olga

Olga — Sun, 16 Nov 2008 06:52:47 +0000

I think the most interesting part of this is that you can be ordered to have a life insurance policy on someone else by a court. I understand the purpose (if someone paying child support dies, you still need child support), but its just not something I would ever expect to hear about. Can courts also rule on how much that policy is for, because that locks parties into having to pay for a contract that the court does not normally control.

By: Paula

Paula — Sat, 15 Nov 2008 00:05:15 +0000

I can’t even imagine this. A divorced couple squabbling over a life insurance policy? Have people no shame?

I have been divorced once and I was able to keep things civil with my ex-husband. We were upset with each other, but at least we didn’t turn into animals. If you’re getting divorced, keep your cool and negotiate calmly with your ex. It will result in far fewer headaches for both of you and will probably result in you both getting most of what you want. Divorce is not easy, but you don’t need to make it harder.

By: Ezra

Ezra — Fri, 14 Nov 2008 22:11:35 +0000

It’s a sad state of affairs when you don’t even trust your spouse enough to have a life insurance policy that’s not shared by both parties. It’s the same type of situation as a prenup– I couldn’t imagine having to ask a spouse to do something like this. It’s akin to telling the person “I love you, but I figure we’ll probably get divorced at some point.” The solution is not to marry someone unless you really love them. Obviously mistakes can happen, but if you date someone for 2 weeks and get married, and then you have to divorce, is that really any surprise? Be responsible when marrying to avoid these awkward situations.

By: George

George — Fri, 14 Nov 2008 04:36:30 +0000

I was unaware of this practice. I don’t consider myself an expert in divorce policy by any stretch, but I have not heard of this particular type of settlement. I think that it is very interesting, and makes a lot of sense now that I consider it fully. A few years ago a close friend of mine was involved in a very messy divorce, and unfortunately it ended with a situation that could have benefited from a policy like this. I will have to ask my friend if a life insurance policy of any kind was discussed in settlement. The versatility of this option makes it very impressive indeed.

By: Ben

Ben — Fri, 14 Nov 2008 04:29:15 +0000

This is a sticky situation at best. I usually advise my clients to do the latter, but w usually discuss our options first. Most of the time, the premiums are not too high for the person receiving the benefits. I have found that allowing the person who will benefit from the policy to be in control of it decreases tensions across the board. I wonder if anyone here has encountered the problem that sometimes arises, where a contributing member simply stops paying into the insurance policy through some loophole in the agreement. It is important to ensure that the agreements are solid and well understood by all sides.