“Why do I need life insurance during a divorce? ”
In divorce situations, life insurance is often used to secure responsibilities for one of the parties, either for spousal or child support. Court-ordered child support is worthless if the obligor is deceased and there is no insurance in place to warranty it. This can result in hardship and or the inability to pay for a child’s education. Yet, at the same time, the need for life insurance protection changes over time as children grow-up and ex-spouses remarry. Life insurance in a divorce situation needs to be flexible enough to handle whatever changes will occur after the divorce–often years after the divorce.
Often, life insurance is used to guarantee that child support will be available in the event that the obligated party dies before the children reach adulthood. In many instances, existing life insurance policies may be modified to accomplish this goal. In other instances, new policies may have to be acquired to permit the certainty that support will be there over the years following divorce.
First Cardinal Financial Services founder, Joe Faulk, currently holds Series 6 and Series 65 securities licenses and is currently licensed with over 17 health and life insurance carriers in Florida. He has been licensed to sell health and life insurance in Florida since May, 2002 and specializes in divorced decreed insurance.