Going through a divorce can be extremely challenging for all of us. That’s especially true when it comes to kids being a part of the process as well. It’s very important to understand how everything takes place, what role does Philadelphia Life Insurance has, and how you can manage everything appropriately. The truth is that divorce and life insurance policies can be a bit harder to manage, which is why we decided to let you know what’s still covered by your policy and what’s not covered anymore due to the separation.
Is Philadelphia Life Insurance considered an asset during a divorce?
When you enter a divorce, you need to list all your assets. The thing to keep in mind is that term life insurance might not be seen or treated as a financial asset. Because of that, it doesn’t fall as a subject of divorce, to begin with. What you need to keep in mind here is that you must change the policy after you finalize the divorce. That being said, whole life or permanent Philadelphia Life Insurance policies will be seen as an asset, so you have to declare the cash value of such a policy as an asset.
Do you still need life insurance after your divorce?
In case you have no kids, the breadwinner is that person paying the premium. The policy exists, so the person that’s not the breadwinner is now kept away from any hardship, in case the breadwinner has passed away. If you are the breadwinner and you don’t want to cover the former spouse with your insurance, you can sell the policy or surrender it.
It’s possible to continue the coverage after divorce, but many states will need you to set the former spouse as your beneficiary. Getting legal assistance and support in such a situation is a very good idea, and it will help you more than you might expect. If you’re not the breadwinner, you might not be the beneficiary anymore. That means you need to find other ways to enhance your financial security.
An important aspect is that you can have Philadelphia Life Insurance on your ex-spouse, generally, this is related to child support or alimony. However, the important thing to keep in mind is that the ex-spouse needs to agree with this.
What happens if you have kids?
As you can imagine, things become more difficult when you have kids. If your kids are at home, then you must have a life insurance policy protecting them. The custodial parent has to include child support and alimony income when determining the policy size. Generally, if the ex-spouse can’t pay premiums, then the custodial parent is the owner.
Is it possible to change the life insurance beneficiary during the divorce?
A good thing here is to talk with a lawyer. There are states like Massachusetts where beneficiary changes are not allowed until there’s a settlement. There are other things to consider, like the policy having an irrevocable or revocable beneficiary. All the little things matter here and they will make a huge difference.
It’s very important to understand the Philadelphia Life Insurance requirements and ensure that they are not affected by the divorce. We recommend hiring a legal expert that can help guide you through this process and ensure that you have the best results.