Life Insurance to Secure Support

Life insurance serves as a financial safety net to protect support recipients in the event of the paying spouse's death.

If something were to happen to the payor, then the recipient would be left without support unless there is life insurance in place.

Key Considerations

• Coverage amount of the life insurance policy is based on the projected financial needs of the support recipient or children in the event of the payor’s death
• For spousal support, the life insurance policy typically names the support recipient.  
• For child support, the policy may name the support recipient, children, or a trust established for their benefit as beneficiaries.
• Failure to comply with these requirements can result in legal consequences, such as enforcement actions or modifications to the support obligations or claim against estate
• Both parties can monitor coverage to comply with the agreement
• Consider the cost of premiums, tax implications, and long-term financial planning when establishing and maintaining life insurance policies

By incorporating life insurance requirements into divorce agreements or court orders and ensuring compliance with these provisions, divorcing couples can safeguard the financial well-being of all parties involved.