IS LIFE INSURANCE NEEDED AFTER DIVORCE?

What happens if the spouse who is responsible for providing for child support, maintenance and other support passes away?  To ensure these payments are able to be made include in your Stipulation of Settlement that the spouse responsible has enough life insurance to meet these financial obligations.

Once you have agreed on child support and/or maintenance, you need to calculate the total amount due including the final payment.  Basic child support can be calculated and any pro rata add-ons to child support can be estimated.  For instance, you may be able to estimate how much extra-curricular activities, college and other additional expenses are going to total during the lifetime of the child support obligation.  You will know exactly how much your monthly or yearly maintenance payment will be and then multiple that number by the number of years payment is to be received.  Once you have the total figure, a life insurance policy should either be initiated or maintained to guarantee that total payments are ensured through the entire period of support that you are entitled to receive.  The policy should list the spouse receiving the payments as the beneficiary. 

As the years progress, the amount of insurance can decrease as the obligation decreases, which will also lower the premium payments.  By obtaining this policy in the event of any unfortunate unforeseen circumstances, support payments will be guaranteed especially for the children.