by Guest » Mon Sep 13, 2010 07:33 pm
My 1994 divorce decree specifies that my wife is to own a 200,000 life insurance policy
(named by contract number) and that I am to pay the premiums. The decree does not say
what the purpose of the life insurance is for or for how long it is to be maintained. My ex wife bought a 20 year guaranted renewable term life insrance in 1993 a year after we were legally separated. My alimony obligations ended in 1997. If my ex wife renews the term life insurance policy will
I be required to pay the new premiums that will increase by more than 5 times during the first year alone? I am currently uninsrable as I am a recent cancer survivor in my mid 60s. I could not afford laawyer at the time and I feel upset that my financially secure ex wife who no longer has an insurable interest in my life would profit greatly from my death.
(named by contract number) and that I am to pay the premiums. The decree does not say
what the purpose of the life insurance is for or for how long it is to be maintained. My ex wife bought a 20 year guaranted renewable term life insrance in 1993 a year after we were legally separated. My alimony obligations ended in 1997. If my ex wife renews the term life insurance policy will
I be required to pay the new premiums that will increase by more than 5 times during the first year alone? I am currently uninsrable as I am a recent cancer survivor in my mid 60s. I could not afford laawyer at the time and I feel upset that my financially secure ex wife who no longer has an insurable interest in my life would profit greatly from my death.
Posted: Mon Sep 13, 2010 10:40 pm Post Subject:
If your divorce order is as vague as you posted in your initial sentence, the answer is probably yes. As the owner, she has the right to renew the policy. If your order says you get to pay the premiums, then that's what happens. Only a modified order or an agreement in writing from your ex not to renew the policy or releasing you from paying the premium if she renews would take precedence.
my financially secure ex wife who no longer has an insurable interest in my life would profit greatly from my death.
You might view it that way, but the fact is that life insurance does not create a profit. Insurable interest is only required at the time the policy is applied for or becomes effective.
You have a couple of years until the policy is due for renewal. Perhaps you and your ex can find some resolution to the matter. Or you can petition the court for relief. You can probably do that without an attorney.
Posted: Tue Sep 14, 2010 03:18 am Post Subject:
Is she irrevocable beneficiary of the policy? If not there's no notice that would like be sent to her if the policy lapsed. If you died, she could potentially become a creditor to your estate, and that's about it. If you have assets, and they are properly titled, you could potentially avoid much--if not all--of the probate process, and without an estate there's nothing to lay claim against.
If you now have money to seek out legal counsel, now would be the time to do it. Don't get the bright idea to necessarily take everything I've said as good advice, it's simply an idea that you might be able to build off.
Alternatively, how open would the wife be to just dropping this part of the divorce decree?
Posted: Tue Sep 14, 2010 03:37 pm Post Subject:
my wife is to own a 200,000 life insurance policy (named by contract number) and that I am to pay the premiums.
No need to be the irrevocable beneficiary if the owner of the policy. As the owner, she gets all of the notices.
If you have assets, and they are properly titled, you could potentially avoid much--if not all--of the probate process, and without an estate there's nothing to lay claim against.
Good advice, even if a prior divorce is not the igniting spark.
Posted: Tue Sep 14, 2010 04:54 pm Post Subject:
Don't take this advice. Talk to your attorney!
If it was me, I wouldn't pay it. If it is truly a 20 year policy, it will expire in 20 years. If the price will go up after 20 years, it is actually an annually renewable term policy with level premiums for 20 years. If it lapses, and you aren't insurable, there is no way to get new insurance. An insurance company won't allow your ex to be the owner of a new policy on you if there is no insurable interest.
I would guess that the intention was only for the insurance to last as long as the alimony and/or child support to make sure that this money was available if there was premature death.
Posted: Wed Sep 15, 2010 02:40 am Post Subject:
No need to be the irrevocable beneficiary if the owner of the policy. As the owner, she gets all of the notices.
Missed the part about her owning it. Strange set up that she owns it and he pays for it.
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