It’s not uncommon for a California resident to receive child support or alimony payments after their divorce. The needs of the ex-spouse and any children will determine the payment amount.
Regardless of the amount, individuals receiving these payments depend on them to make ends meet. If these payments were to stop suddenly due to an accident or untimely death, it would have a significant negative impact on the surviving individual.
The court may account for this when determining alimony or child support payments. They may even have your ex-spouse take out life insurance to ensure you’ll have financial support should the unthinkable happen.
How life insurance helps with child support or alimony payments
Life insurance ensures your surviving family members aren’t left impoverished after you’re gone. Life insurance is a safety net for many families should the unthinkable happen.
Individuals may already have a life insurance policy through their work, but they can purchase one independently too. The judge may order the spouse making payments to list their ex-spouse as a beneficiary on that policy after the divorce.
How much should the life insurance policy be?
Life insurance should be enough to help the surviving ex-spouse and any minor children. The amount of life insurance policy you take out will differ depending on the children’s or spouse’s specific needs.
If the children are younger, the life insurance policy should help them until they’re of age. As children grow up and their needs change, the amount of the life insurance policy can decrease. However, if the children have unique medical or educational needs, the life insurance could become even more expensive.
If they choose to keep the life insurance policy open, the individual making payments can change the beneficiary from their ex-spouse to their children once they turn 18. This will ensure their children are still supported directly by the policy.