Life Insurance Considerations for Divorcing Couples

jboussea

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Looking for information or stories from the seasoned veouts on this one. what should an agent look for when it comes to divorcing couple that have existing policies

I'm sure there are things to consider if they have joint policies.. but what if they have separate policies.. are there any potential problems agents should be aware of? or should we leave it alone
 
It can be an issue with permanent plans, especially if they aren't quite equal between the two. That was a concern regarding Assurity's First to Die whole life plans, but what they do is split the policy in half - half the death benefit, half the cash values, and half the premiums for both. Not every policy will be so easy to figure out.

There may be part of the divorce decree/settlement that the court orders that insurance premiums continue to be paid on current policies and that the beneficiaries not be changed.

If a couple is divorcing, that's a major life event. I'd go find a new prospect. I'd leave the ENTIRE thing alone and let the lawyers hash it out.
 
It can be an issue with permanent plans, especially if they aren't quite equal between the two. That was a concern regarding Assurity's First to Die whole life plans, but what they do is split the policy in half - half the death benefit, half the cash values, and half the premiums for both. Not every policy will be so easy to figure out.

There may be part of the divorce decree/settlement that the court orders that insurance premiums continue to be paid on current policies and that the beneficiaries not be changed.

If a couple is divorcing, that's a major life event. I'd go find a new prospect. I'd leave the ENTIRE thing alone and let the lawyers hash it out.


always appreciate your great advice.

Thanks
 
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