Divorce can be a difficult situation. Not only the process itself but the lifestyle changes and adjustments that come with it.
For example, it may be that simply approaching the subject of divorce with your ex-spouse is nerve wracking. Or you may face stress in dealing with child custody, child support, and spousal support.
If you are a non-custodial parent, but you need to care for your children financially, you need to purchase a life insurance policy. However, this brings up a common question that those who find themselves in this situation often ask. That question is “can I put life insurance policy on my ex-spouse or partner?”
In this article, we will answer that question for you and provide more context.
Can I Put Life Insurance On My Ex-Spouse?
The short answer is yes; you can put your ex-spouse in your life insurance. But it is not always so simple.
Putting your ex-spouse in a life insurance policy can be a difficult task.
There are many things that you, your ex-spouse, and your insurer must agree upon before you can add your ex-spouse to your policy. (And, yes, for better or worse, your ex-spouse does have to know about the insurance policy for it to be legal.)
What Is Insurable Interest?
A key part of getting a life insurance policy on your ex-spouse is demonstrating “insurable interest.” Insurable interest means that it is essential for you financially that the insured person must stay alive. Otherwise, in the case of an untimely death, you will suffer a significant loss.
Thus, when you say insurable interest, it simply means that it is essential for you that your ex-spouse stays alive. Otherwise, their death will cause you a significant financial loss, primarily if your spouse owes child support and your spousal support.
It does not have to mean that it is best in your mental or emotional interest to keep them alive. It only needs to show that the passing of your ex-spouse would put 100% of the financial burden of supporting your kids on you.
Other Requirements For Interest and Life Insurance
In summary, you must be financially dependent on your ex-spouse partner to some degree to be an eligible beneficiary for a life insurance payout.
However, insurable interest is not the only thing that you, your ex-spouse, and the insurer will discuss. You also need to get your ex-spouse’s consent to be the beneficiary on your ex-spouse’s life insurance policy. There is no legal way to take out a policy on an ex-spouse without them knowing about it.
So they do have to know about it. And, in some cases, they may even have to get a medical exam in order to get a policy. However, there are some life insurance policies that do not have that requirement.
If you are having trouble getting your spouse to agree to this, one thing that can work in some situations is to put your children (instead of yourself) as the beneficiaries of the policy.
So, in conclusion, you can get to be the beneficiary of your ex-spouse’s life insurance policy. But it has to be considered an insurable interest and having your ex-spouse’s consent.
