Can I Buy a Life Insurance Policy on my Ex?

This question might surprise you, but it’s actually quite a common situation. Many people wonder whether they can purchase a life insurance policy on their ex spouse, and the answer is yes! Not only can you do that; in many cases perhaps you should.

This type of policy can be purchased during the marriage, and continued after the divorce, or you can even select a policy after the marriage is over. In the event that something happens to your former spouse, this policy offers financial protection to both you and your children. Essentially, it’s a method of insuring child support or alimony payments, or providing for the children in the absence of the other parent.

There are two caveats, though: Your former partner must be willing to sign the application, and agree to you being the beneficiary. Yes, this can sometimes present a challenge, but most divorced couples realize the importance of financial security, especially where the children are concerned.

Children can even purchase policies on their significant others, or even for their parents. Individual situations can vary, but there are definitely good reasons for taking this step to ensure financial stability in the event of an unexpected death.

Finally, keep in mind that the payout of a life insurance policy is tax-free. For that reason, life insurance is also the most straightforward, hassle-free way to provide much-needed income in the event of a sudden life change.

For more information on insuring your former spouse, or someone else important in your life, give us a call. We can help you compare policies and learn about the process of enrolling in this type of life insurance contract.