Purchasing life insurance for a divorce related court order is a very simple and straightforward matter
This article will give you all the knowledge and confidence to make a sound decision purchasing life insurance in this very turbulent time of your life
Americans are purchasing life insurance for a divorce settlement virtually everyday of the week. If it looks like you are going to be involved in a divorce or are already active in one. Keep one thing in mind, you definitely are not alone in this country. Some of the latest statistics listed by a number of organizations that follow divorce statistics in the United States. They are indicating approximately 57% of first time marriages are becoming casualties of divorces and 74% of second time marriages are ending up in divorce also. These are very depressing statistics to say the least.
Life insurance for divorces, child support and alimony requests are on the rise all through the country
The statistics also show that 75% of the divorces are filed by women. Also, where alimony is in question, 97% of the alimony requests are granted and are being awarded to the female spouse. A poor economy is the number one factor that triggers divorces according to the statisticians. Money problems have always ranked the highest when it comes to igniting the marital fuse. Life insurance for a divorce requested court orders is rising every year.
Purchasing life insurance for a divorce, child support or alimony agreements should be very simple process
Enough with the depressing statistics, let’s cut to the chase and discuss our main topic of discussion which is purchasing court ordered life insurance for a divorce case. In many cases the court will require you to secure a life insurance policy without very much notice. Life insurance for divorce settlements is an extremely common request especially when there are children involved.
You can expedite this request if necessary with no medical exam life insurance. The three main life insurance products will be Term life insurance, Universal life insurance and Whole life insurance which is usually too expensive. If you have any health conditions they could complicate the application process and possibly take longer to approve. A non-med product would be your best bet. Approval times could be as short as 24 hours vs fully underwritten plan designs could take at least 30 days or even more to complete.
Usually the request for life insurance will be ordered by the judge presiding over the divorce case
In most situations the subject of divorce begins with the two members of legal counsel. The first would be the legal representative for the petitioner which is the spouse that initiates the divorce. Then you have the legal counsel for the respondent, which is the spouse that answers to the law suit. They usually will try to come to a simple agreement on how much life insurance should be required. There is also the term length of the policy to be considered. This will be how long the life insurance should remain in force for the beneficiary’s interests.
The main reason for this usually is financial protection of the children involved. The spouse caring for the children who will usually have custody of them could also be requesting life insurance to cover him or her also. If there are no kids involved, it is possible no life insurance will be requested.
Assigning the requested beneficiary is an important step in the application process
The beneficiary of the policy is normally going to be the names of the children. In many cases a trust is drawn up to keep the life insurance funds in a safe place. At least until the children are of age to actually be old enough to handle money. If the funds are needed right away the guardian of the children will be elected. They can then use the death benefit to pay the necessary expenses that are at hand. Sometimes the ex-spouse who is the legal guardian of the children will also be required to be insured.
This is normally done to make sure if the wife who has custody and is caring for the children passes unexpectedly. There will be a life insurance payout which will cover the cost of someone else such as a nanny or a day care facility to take care of the children. At least during the day while the father is working since the mother is now deceased.
The most common type of life insurance will be low cost term life insurance
Term life insurance is normally going to be the most common form of life insurance used in a divorce settlement. You can use our instant quote engine to get an idea how much your life insurance will cost. Parents in many cases will be responsible for the upbringing of the children at least to age 25 especially for the education of the children.
Applying for life insurance can sometimes be a time consuming process and when it comes to a divorce. This is where non-med life insurance comes into play with the short approval time. The actual application process is very simple and straightforward. Unfortunately many judges do not realize the time that it takes to apply and become approved.
Relax this is simple, here is exactly what you need to do!
Don’t waste any time or go through anymore confusion that you already have. Reach out to an independent insurance agent such as ourselves and let your agent do 90% of the work for you. Independent agents otherwise known as brokers work with over 40 life insurance companies. They can direct you to best best policy design with the lowest life insurance rates within minutes. If you have any health problems, your agent can run a medical pre-screen to pinpoint what company would offer you the best life insurance rates.
What life insurance companies have the best rates?
Unfortunately there is no one company the will have the lowest rates for everyone. Your agent can determine what company would be your best choice. Here are some of the best companies with the most competitive rates:
- Banner Life
- Protective Life
- Assurity Life
- Minnesota Life
- Cincinnati Life
- American General
- Principal Financial
- Lincoln Financial
- SBLI (Savings Bank Life Insurance)
Purchasing life insurance for a divorce should not be a stressful event because the legal system will create enough of that
Nobody knows the stress and mental pressure that is involved with a divorce unless you have gone through it yourself. The actual specifics of the life insurance request will be determined by the judge handling your case. Divorce laws vary widely from state to state and the laws change with time. All divorce settlements can easily vary from one case to another. But purchasing the life insurance requested for the settlement is normally an easy process.
Don’t hesitate to grab your phone and give us a call 7 day a week toll free at 800-897-5699. There is never any cost or obligations for our help. I endured a three year divorce myself so I am an expert on the subject.
All the best,