Is there anything that can assuage the pain of divorce?
Not really – not anything that we could responsibly recommend. Beyond the emotional trauma and upsetting of the family’s applecart, divorce can play havoc with estate planning. When the stress fractures start to form, life insurance can help your clients patch up the cracks and solidify their foundation.
Divorce can get expensive – indeed, even amicable cases can cost a good bit in legal fees and untangling joint assets. If the former couple was prescient enough to take out permanent life policies, they’ll find it a source of succor in darker times. The policy’s cash value can be tapped for withdrawals or loans to pay legal and other costs, avoiding a fire sale of more valuable assets.
Not all divorcees are created equal. Stay-at-home spouses, suddenly single, can find themselves dependent on alimony, at least for a time. What should happen if the breadwinning spouse should suddenly pass away? Permanent life insurance for the spouse paying alimony – or even more pressingly, child support – is a must.
If the provider-spouse dies, the estate would have to cover remaining debts. Life insurance can help pay these off, thereby avoiding panic asset liquidation. This protects the heirs – including the former spouse, who may now be facing child rearing alone (if they didn’t have the kids before, they will now) – from shocks and potential delays in receiving financial resources vital for living.
What if a client remarries? If they have children from the first go-round, they’ll likely want to assure they receive an inheritance. Customers sometimes worry about friction between their two families in the stressful circumstance of their own death. Life insurance is a good way to provide a worry-free legacy.
For more, please see:
5 Ways Life Insurance Eases Post-Divorce Estate Planning | Insurance News Net