You have probably seen countless advertisements on television or online about the importance of planning for your family’s future. Of course, most such ads are designed to sell you a life insurance policy or other types of financial planning services. There is, however, an element of truth to what is being said: it truly is important to plan for the security of your family. It can be especially critical if you are a parent who has gone through a divorce and are now faced with sharing financial support responsibilities with the other parent.
Voluntary or Ordered
In Illinois, it is possible for the court to order you to purchase a life insurance policy to secure your child support or spousal maintenance obligations. This is to ensure that, in the event of your untimely death, benefits will be paid to your children or to your ex-spouse, as appropriate, to help alleviate some of the financial impact to them.
If you have not been ordered to maintain a life insurance policy, you may want to do so voluntarily. Understandably, you may not be too concerned about providing for your ex-spouse in the event of your death—although you also may be, depending on the circumstances—but your children will always be your children. With minimal expense, in many cases, you can carry a life insurance policy that would provide fairly significant financial benefits to them should something tragic happen to you.
Choose Your Beneficiaries Carefully
When you buy life insurance, you will have the opportunity to name beneficiaries, or those who are to receive benefits upon your death. In most cases, you can simply name your children as beneficiaries, regardless of your relationship with the other parent. More than likely, any proceeds from your policy would be placed under the care of the other parent, but he or she would the legally-enforceable duty of using those funds for your children’s benefits. Failure to do so could result in legal action and sanctions by the court against the other parent.
Speak to a Lawyer
As you consider your options regarding life insurance after divorce, it is important to seek the advice of an Orland Park family law attorney. Our knowledgeable team will help you understand the potential benefits for your children and will guide you in making sound decisions in securing their future. Call 708-518-8200 to schedule a free consultation at either location of Kezy & Associates.