How To Determine Life Insurance Needs After Divorce

How To Determine Life Insurance Needs After Divorce

Tim: So we had a big picture everything that should be looked at when going through Divorce.

We talked about term insurance for covering the spousal support. We talked term insurance for covering potentially the childrens college education or maybe paying off their student loan debt or–

Jon: Exactly.

Tim: What are other things would you throw in there?

If I were talking about insurance today and I was going through a Divorce. And I’ve been married for 19 years.

And two kids are still minors, what things would you say, ‘Tim, if you want to make sure that they’re taken care of aside from the college and the spousal support, what are the things would you throw in there?

Paying off the house maybe or –

Jon: Right, and really it will depend on the situation your spouse is in. But yes, anything like that when there’s a foreseeable expense in the future might be a really good thing to add into the life insurance.

There’s also retirement, if you think about it this way, now the expectation is you’re going to keep working.

And you’re going to keep building the retirement fund. So even though we might replace your income or your child support, that retirement fund doesn’t keep building anymore.

So one of the other things that you can do with life insurance is let’s say, ‘Gee, if something happened and I can’t build that retirement fund, you use the life insurance to build that retirement fund.’

So that’s it. That’s a bigger piece. I mean it can add up to a bigger number but it’s an important factor because I don’t think people think they think well, ‘Gee, I just want to puff my house.’

Well, that’s great when you puff your house, then what? How are you still going to meet your monthly expenses?

And how are you ultimately going to be able to take yourself on the work force?

Tim: Right.

Jon: So I think looking at more than just even the current expenses, it’s looking for the future. What other cost you may have or what other investments you want to make?

And to making sure that the life insurance is there to take the place if your income can’t.