Life Insurance as Part of Your Marital Settlement
Kane County Divorce Lawyer Serving Clients Throughout Illinois
What happens if you are awarded lifetime maintenance in a divorce settlement and the ex-spouse dies two years later? What if he dies not having paid the last premium? What if the insurance policy is paid and you have to pay the IRS almost half in inheritance tax? A life insurance policy is a key provision in a divorce settlement, sought to further secure the financial stability of ex-spouses and dependent children. But there are a number of issues and protections that need to be made a part of the insurance agreement.
If you are seeking life insurance in your divorce settlement, the Law Offices of Douglas B. Warlick has the experience and knowledge to offer you the best advice and counsel. We handle marital settlements in divorce cases for our clients in Geneva, Illinois and throughout Kane and DuPage Counties.
Marital Settlement Agreements and Life Insurance Policies
To reinforce the financial terms of your divorce settlement, you need a good life insurance policy taken out on your ex-spouse with you as beneficiary. The Law Offices of Doug B. Warlick works to secure viable life insurance policies for you and your custodial children that will pay you a lump sum sufficient to cover your loss of maintenance or child support monies in the event of the death of your ex-spouse. In negotiating your life insurance agreement, we look to insure that:
- The value of the policy is adequate to sustain the level of funding agree upon in your settlement;
- You are listed as the owner of the policy;
- You are named as beneficiary, with your child as the contingent;
- There is a means to insure the policy premiums are kept current;
- There is no end-date for the life insurance coverage if you are receiving lifetime maintenance;
- The type of policy is appropriate for your term of settlement and period of maintenance; i.e. term life for short-term settlement, whole-life policy for lifetime;
- The insurance policy is set in a trust to avoid adverse tax consequence for the beneficiary of the estate;
- Policies for your dependent children are extended beyond age 18 if they are full-time college students; and
- You are the only one who can cancel the policy.
In addition to life insurance, divorce settlements may address health insurance policies for you and your children, long-term care and disability insurance coverage, or car and home/mortgage insurance.
Contact an Illinois Divorce Attorney Immediately
Attorney Douglas B. Warlick is experienced in negotiating marital divorce settlements. Attorney Warlick can offer practical advice and direction on how to negotiate the best terms for life insurance policies that protect you and your children. From our Geneva office, our law firm can accommodate clients throughout Illinois. Contact our office at 630-232-9700 for a discounted initial consultation to discuss your insurance needs in your divorce settlement.