

Life Insurance Considerations & Divorce
Here is a list of a few “life insurance” considerations before you get into a divorce proceeding and what you need to consider if life insurance coverage is needed in the divorce agreement.
· The Insured Spouse Should Go Through Any Underwriting Process Before They Sign the Settlement Agreement if Possible
If there is chance of the coverage not being available to the spouse as a result of health issues or if the premium is prohibitively expensive, the settlement needs to have other provisions included that ensure protection against a premature death. Some of these measures that can be used in an Orange County divorce settlement are trusts and other planning tools for estate. If you and your spouse don’t have coverage as of now, it is best that any coverage you apply for is based on a rate and policy comparison for your situation.
· You Shouldn’t Name Your Minor Children AsBeneficiaries, Even Via a Custodian
This is one of the most common errors made by parents going through an Orange county divorce. The reason for this mistake can either be a lack of knowledge or contemplation. Any payments made with such a designation of beneficiary will go straight into the UGMA account if the child has not yet reached an age of maturity. Even if you don’t list a beneficiary the court will be quick to appoint one. While this may not be problem per se, it can be when the child will have complete control to the account once they mature, which will usually happen once they are 18.
· The Beneficiary Can Receive Notices for Premiums
The ownership of the insurance or who makes the payment does not matter. Irrespective of these intricacies, the beneficiary needs to be notified of about the status of the policy, which is also known as the proof of insurance. The insurance company is obliged to provide the beneficiary with a prior notice before the policy can lapse on non-payment giving them enough time to take appropriate action.


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