How would you cope if your maintenance payments stopped?
Do you ever wonder if you could afford to pay your children’s school fees if your ex were to die? Or if you would struggle financially if your maintenance payments were to stop?
A lot of divorce cases, usually where minors are involved, will have an element of maintenance payments or an agreement for the ex spouse to pay for certain costs associated with the children, therefore, if your ex spouse were to die how would you cover that additional income?
If there is an agreement in place with your ex spouse to cover certain costs you have what is called an insurable interest in that individual, therefore, you are able to set up a protection policy on their life. This protection policy might pay a lump sum out on their death or it could provide you with an income until the children reach an age of independence.
It is often agreed that you will cover the cost of the premiums of the policy, however, the proceeds can be paid out either to yourself or to a trust for your children in the event of your ex’s death. You would need your ex spouse to complete a medical questionnaire, and depending on their answers, they may also require a medical examination before cover can be agreed.
If you would like to discuss setting up a protection policy to cover maintenance payments or costs for your children which your ex currently covers , do please get in touch with me.