When dividing up their assets between themselves and their former spouse, very few people think about how life insurance fits into divorce proceedings. The answer depends on the type of policy you have. The team at Riskbusters Insurance, serving Tennessee, will streamline the situation for you.
Pre-Divorce
Permanent life insurance operates differently from term life insurance. Term life insurance may remain unaffected during a divorce. Meanwhile, permanent life insurance has cash value that is eligible for division. Mention the value in the divorce papers. Also, compare the life insurance policy to any prenuptial or postnuptial agreements.
During Divorce
There’s a lot of financial and emotional strain and pain to juggle, so we won’t bother you during a divorce. Contact us when you’re ready to discuss life insurance.
Post-Divorce
After the divorce is final, a judge may order you to secure a life insurance policy for alimony, child support, or another reason. That’s a court-ordered life insurance policy, and our agents will set it up to the court’s preference.
There’s also a 50/50 chance you can remove your spouse from the policy. Removal depends on:
- The owner of the policy
- Whether that spouse is irrevocable
- If children are a part of the policy
- Whether the judge has made a ruling on the policy
If your spouse has removed you from their life insurance policy, you can open a new policy with us. That is also a good solution for single parents.
At Riskbusters Insurance, we know divorce can be challenging and stressful. Our agents want to make the process as straightforward as possible. We will review the policy with you and discuss your options to prepare you financially for the road ahead. Contact our office for more information on life insurance. We’re currently serving Tennessee.
