life insurance

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life insurance

Unread postby RC411V » Mon Apr 03, 2017 1:22 pm

Looking at a draft MSA I have a clause that describes dad having to either carry significant life insurance or agreeing that estate will continue child support in the event of his death.

I have not seen this or heard much of it. Not sure if it is more common in some states vs others, or I can easily imagine when a parent has significant $$$ it might be an issue.

Since I'd be dead who gives a < feces > for me, but I'm not going to change my life insurance policy that I have through my employer, and talking about rights to my 'estate' seems kinda dumb. Like, how would it be enforced, what about my other kids, who would get to pick first when it came to division.

It doesn't seem very realistic and/or enforceable, and I don't like planning for death in the next 15 years.

Any insight onto this kind of policy being in a divorce judgment?
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Re: life insurance

Unread postby JimRockford » Mon Apr 03, 2017 1:28 pm

I'm guessing that the divorce decree would suffice to perfect a claim against your estate. I don't know whether or not it could be presented to the insurance company to override whatever beneficiary has already been designated.
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Re: life insurance

Unread postby gamingdad » Mon Apr 03, 2017 1:36 pm

Can you make the insurance policy have the kids as beneficiary when they turn 25 in the event of passing?
I've never heard of an estate paying child support.
Know any probate lawyers?
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Re: life insurance

Unread postby lionel2013 » Mon Apr 03, 2017 1:46 pm

RC411V wrote:Looking at a draft MSA I have a clause that describes dad having to either carry significant life insurance or agreeing that estate will continue child support in the event of his death.

I have not seen this or heard much of it. Not sure if it is more common in some states vs others, or I can easily imagine when a parent has significant $$$ it might be an issue.

Since I'd be dead who gives a < feces > for me, but I'm not going to change my life insurance policy that I have through my employer, and talking about rights to my 'estate' seems kinda dumb. Like, how would it be enforced, what about my other kids, who would get to pick first when it came to division.

It doesn't seem very realistic and/or enforceable, and I don't like planning for death in the next 15 years.

Any insight onto this kind of policy being in a divorce judgment?


I have the exact same clause in my divorce decree - both X and I obligated ourselves to get life insurance with S12 as beneficiary. It's an additional measure of protection for our kid, I guess, court-ordered. You can argue it's an over-reach, since if X and I were still married no one could force us to get life insurance with S12 as kid. But this (Illinois) is a state where family courts can and do also obligate divorcees to pay for kids' college expenses, so i am not surprised. Welcome to Illinois.

As a matter of fact I just filed a motion to compel my X to provide proof she too has life insurance for S12 -- she has refused to provide said proof since the divorce was final in 2014.
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Re: life insurance

Unread postby JimRockford » Mon Apr 03, 2017 1:51 pm

I just re-read your post, as first I thought that you said that this was your MSA, then I saw draft MSA. I would not give up the ghost too easily on this one as the Social Security Survivorship already covers a lot of this. Giving into this, sets her up to get paid twice. Is there a similar clause for her? Finally, if you must agree to life insurance, I would try to work some kind of progressive step down, otherwise if you croak the day before CS ends, she still collects as if you croaked five minutes after you signed the MSA.
Last edited by JimRockford on Tue Apr 04, 2017 10:31 am, edited 1 time in total.
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Re: life insurance

Unread postby RC411V » Mon Apr 03, 2017 1:52 pm

Yeah this seems an unusual thing for CA, to me.

No, she has no financial responsibility except half of uncovered medical costs, which are low with the insurance I'm fortunate to have.

So it just seems like it shouldn't be in there at all. To me.
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Re: life insurance

Unread postby Trevor » Mon Apr 03, 2017 6:01 pm

I wouldn't do it, first of all. However, my X's lawyer raised the issue an I countered with two criteria:

1. Direct reciprocity: if she gets cash for me dying, then I get cash for her death
2. My coverage decrements in correlation to outstanding CS obligation (up to me to divert the beneficiary percentages so she doesn't get a windfall, only what's "owed")

When I presented these, her lawyer STFU about it.
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Re: life insurance

Unread postby ScaredNConfused » Tue Apr 04, 2017 9:49 am

I'll know very soon, but it looks like my final orders will have a life insurance policy as part of my requirements. There will be no reciprocal policy because my income is so much greater and it was declared that the chances of my stbx ever even coming close to my income won't happen.

The wording will be something like "Husband shall secure his maintenance and child support obligation through a life insurance policy in which he is the named insured and Wife is the named beneficiary for the total amount of maintenance and child support owed. The life insurance may be reducing in nature. Husband shall provide Wife proof that the life insurance is in effect and the policy premiums are paid as requested by Wife no more than annually."

You can bet that I'll get a reducing policy. Right now it is looking like 15 months of alimony and I'll talk to my insurance agent and get the policy written to reduce as fast as it can. I don't mind the child support but after my stbx has run up the legal bills like she has, I refuse to give her one more cent in alimony then I have to, even through insurance.
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Re: life insurance

Unread postby Justnoise » Tue Apr 04, 2017 9:56 am

I had life insurance in my decree but there was wording that said minor children. The children were the beneficiaries not the wife. When the last one turned 18 I dropped the policy. I had to submit proof to her periodically. She was not happy when she found out I canceled it. Were my kids to speak to me then perhaps I would extend but that is not the case.
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Re: life insurance

Unread postby JimRockford » Tue Apr 04, 2017 10:33 am

ScaredNConfused wrote:There will be no reciprocal policy because my income is so much greater and it was declared that the chances of my stbx ever even coming close to my income won't happen.



It has nothing to do with your ex's income approaching yours. If she passes away and you have to remain employed, your costs of raising the children can be astronomical. A policy on her is to help you offset this cost.
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