Understanding Life Insurance in a New York Divorce

As you likely know, if others are dependent on your income, a good life insurance plan can add stability to your long-term future. However, that means you will likely have to address changes to your life insurance plan moving forward. It can be a confusing arena to navigate, especially with all the complications of finances involved, but you will want to re-evaluate your future needs as well as your beneficiaries to ensure you two can walk away as separate people, while still keeping in mind any other dependents you may have (i.e. children).

If you opened up your life insurance account with your ex-spouse, you should make sure you are the owner of your own policy. This will help you change beneficiaries, which you might want to do depending on your future relationship, any children you have, etc. It’s important to discuss with your attorney the details of policy ownership and the paperwork that follows.

A note on child support:

In order to further protect your children’s future, you may also want to consider setting up a life insurance policy or using one purchased during your marriage on your ex-spouse. This is especially crucial if you depend on your ex-spouse for financial child-support; your life insurance policy could protect you and your child(ren) against the potential of an unfortunate fatality. However, it is up to you to decide if you want to pay for the premiums yourself or work with your ex-spouse to ensure these are covered. (Note: missed payments may increase the possibility of a terminated policy.)

An attorney from Law Offices of Mindin & Mindin, P.C. can help you understand the ins and outs of your life insurance policy, especially during your divorce, such as splitting cash value, ownership, spousal maintenance, and more. If you are looking to take out a new life insurance policy, either term or whole life, you can check out Reviews.com for some helpful tips.

Term: https://www.reviews.com/life-insurance/

Whole Life: https://www.reviews.com/life-insurance/whole/