Term Life Insurance Expiring

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Term Life Insurance Expiring

Unread postby royho » Tue Apr 04, 2017 9:44 am

I purchased a term life insurance policy 20 years ago to provide for my wife and kids while we were starting out. She is the primary beneficiary. Youngest child is now a frosh in college, other older siblings on their own. I have significant 529 savings for the frosh, and other IRA and cash assets. Basically, the need for that term insurance is gone. I just received notice from the insurer that my term is expiring, but I can renew at a much higher premium. I'm still in the process of divorcing, but she is stalling getting things done to finality and we are working through asset division. It is my understanding that once the initial term for the life insurance is over, I am under no obligation to renew it, as the new term wouldn't be considered "marital property." Does any one have experience with this and can you corroborate that I can simply let the term expire? Thanks!
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Re: Term Life Insurance Expiring

Unread postby ScaredNConfused » Tue Apr 04, 2017 9:53 am

This is a topic I'd bring up with my lawyer. I'm assuming most states are the same way as Colorado and I'm under an automatic injunction for both insurance and financials. So be very careful, I had a friend who violated his financial injunction and he got hammered for it, losing a lot of money.
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Re: Term Life Insurance Expiring

Unread postby gamingdad » Tue Apr 04, 2017 9:54 am

What state are you in?
How far along in the divorce process are you?
Some states may require​ a continuation, and if yours is one of those, during the renewal you may want to change beneficiary if you can.
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Re: Term Life Insurance Expiring

Unread postby royho » Tue Apr 04, 2017 10:41 am

I'm in Pennsylvania. Have filed a divorce complaint and have had several spousal support amendments as she's both lost and changed jobs over the two years we've been separated (since Feb 2015), affecting her income. PA has no definition of "legal separation," but after two years I can file for finalization unilaterally. I'm sure she'd counter as we still haven't finalized asset division. Thanks again.
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Re: Term Life Insurance Expiring

Unread postby Trevor » Tue Apr 04, 2017 10:49 am

Is there a cash value to the policy? Can you transfer the policy to her under the new terms?
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Re: Term Life Insurance Expiring

Unread postby royho » Tue Apr 04, 2017 11:16 am

No cash value. Just a simple term policy to handle the unexpected while the kids grew up. My intention all along was to let it lapse when it expired.
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Re: Term Life Insurance Expiring

Unread postby Tom Kirkpatrick » Tue Apr 04, 2017 1:04 pm

royho wrote:I purchased a term life insurance policy 20 years ago.....the need for that term insurance is gone.
This is true. However:

Are you court ordered to pay post majority child support while your kids attend college??.....OR, are you court ordered to pay alimony?? if so, your STBX may have an insurable interest on your life.

1) Do not agree to pay for college. You want no mention of college or post-majority child support in your decree.

Pennsylvania
Termination of support at 18 or completion of high school, whichever is later
No statute or case law holding parents to a duty to college support in the absence of an agreement.
See Curtis v. Kline, 542 Pa. 249, 666 A.2d 265 (1995).

Note – see; Pennsylvania Supreme Court ruling in Curtis v. Kline
https://www.google.com/?gws_rd=ssl#q=Pe ... s+v.+Kline

2) If you hafta pay alimony, get a termination date certain and a non-modification (aka, no revisitation) clause. The only modifiable provision you want is if you should lose your job or if you hafta take a pay cut. Ideally, you want no alimony provision at all.

royho wrote:.....have had several spousal support amendments as she's both lost and changed jobs over the two years.....
^^^ This is what you want to avoid after divorce is finalized; modification after modification after modification, ad infinitum.

Alimony must never be her pension. Research CA's Gavron Warning (Gavron vs Gavron - case law). In your decree, you want specific terms and conditions for alimony termination. You want an air-tight decree. Do not rely solely upon PA statute.

Tom
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