You finally agreed on a settlement for maintenance payments with your ex-partner.
For most people who are going through divorce, maintenance payments are crucial to keep on top of the bills or children’s expenses such as school fees and holidays. So what would you do if there was a change in circumstances? Could you afford to lose your maintenance payments?
What would happen if your ex-partner is no longer around, or seriously ill and not able to pay maintenance? How can you make sure that no matter what happens, your livelihood is not compromised, and your children’s needs are met?
Family Income Benefit could be the answer
Family Income Benefit is a type of insurance policy that pays regular income in case of death or serious illness. It can be written on the life of another, which means that you can be the beneficiary of the income if your ex-partner dies or seriously ill. It can also be written in a trust.
It would be wise to include Family Income Benefit at the settlement process, as your ex-partner needs to agree. This can protect your maintenance payments.
Obviously, there are costs involved for such a protection. But would you rather get £1000 per month unprotected or get £950 which is protected for £50 per month? I would recommend the second option.