Your separation agreement clearly states that you either pay or receive child support and/or spousal support. Have you ever thought of what happens if the payor dies? ...
You're right, the payments would stop. The best way to ensure ongoing support is the proper use of life insurance. Before any policies get cancelled make sure you speak with an insurance expert!
Be Aware Of...
- Does your Separation Agreement adequately detail the insurance protection?
- What type of insurance is it?
- Who owns the policy?
- Is it a joint policy that can be split?
- Whose life is insured?
- Will the face value cover support payments or does it need to be increased?
- Who is the beneficiary? Can that be changed? When and by who?
- Are you insurable? If not, what are the other options to protect you?