Do you have to have life insurance on your ex spouse?
In fact, many divorce decrees specify that the ex-spouses must have life insurance on themselves, with the ex-spouse named as the beneficiary. Alternatively, each ex-spouse could own a policy on the other ex-spouse.
Can a former spouse be a beneficiary on a life insurance policy?
To avoid situations where ex-spouses incidentally benefit from policies of their deceased former spouses, many states have enacted laws that automatically revoke the ex-spouse as the beneficiary on the life insurance policy following divorce. These laws were designed to prevent conflict among families and limit litigation over disputed policies.
When does a life insurance company refuse to pay?
If you die while committing a crime or participating in an illegal activity, the life insurance company can refuse to make a payment. For example, if you are killed while stealing a car, your beneficiary won’t be paid.
Can a divorce decree require a life insurance policy?
A divorce decree may require that one spouse maintains a life insurance policy with the other spouse as a beneficiary. If children are involved in a divorce, then the courts may also order that children could be named as beneficiaries too. Looking for more great divorce and money tips? Here are a few of our favorite guides and resources:
Can a life insurance policy be taken out in a divorce?
Brette’s Answer : You can be ordered to take out a life insurance policy as part of child support or alimony. Talk to your lawyer for details about the law in your state. Can he drop me as beneficiary if we are separated? Lori Asks: We are separated and have not filed for divorce.
Can a life insurance company reject a beneficiary’s claim?
Additionally, if they told the insurance company that they don’t skydive even though they do, and then die in a non-related way, like a car accident, the insurer can still reject a beneficiary’s claim if they find out the policyholder lied. Any misrepresentation on an application breaks the contract.
Can a spouse waive their rights to a life insurance policy?
If a spouse wishes to waive his or her right to a certain life insurance policy, the couple may sign an agreement specifying the policy will be considered separate (not community) property. Usually the insurance company needs to be put on notice of such waiver of spousal rights.
Can a spouse still be a beneficiary of a life insurance policy?
Under many state laws, an ex-spouse is automatically revoked as a beneficiary to a life insurance policy unless the ex-spouse is able to show that there was a written agreement to keep him/her as the beneficiary in spite of the divorce. Not all life insurance policies fall under these revocations laws.