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Further
Reading ...
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How To Run An Online Business... From The Road - Ken Leonard Jr
"How To Run An Online Business... From The Road" By Ken Leonard,Jr. ©2002 KLJ Online Running an online publishing business really lends itself to mobility. Giving you the freedom to live as you would like, while running your...
Cutting Costs can significantly increase your income - Lori Redfield
As a work at home Mother, I know the value of a deal. Any smart business person knows that the best way to make money is to SAVE money. Recently my husband quit his 9 to 5 salaried career to work from home with me. In order to afford this we...
Why I'll Bet on the Bull - William Cate
Why I'll Bet on the Bull By William Cate Published May 2002 [http://home.earthlink.net/~beowulfinvestments/] [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/] Last week, most Daytraders had a terrible week. The...
A Strategy for Attracting Higher Paying Client - Catherine Franz
By Catherine Franz Some people have little difficulty attracting and maintaining higher paying clients. Others can't get to first base. Higher paying clients consume less time, exchange energy instead of zapping yours, have higher regards for your...
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How to protect your life insurance policy while going through a divorce
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Written By:
Matt McWilliams
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Expert advice on protecting your assets in difficult times
Life insurance, more than most things you buy, relates to the circumstances of your life. You buy life insurance to protect your family from financial loss stemming from your death. You tie the amount of your life insurance to the money your family will need to provide an income, pay off debts, put children through college and cover financial commitments.
But what happens to life insurance when you’re about to dissolve your marriage? How do you deal fairly with a soon-to-be ex-spouse, yet still make sure you have coverage for the future? Is there a way to provide for adult children of a previous marriage without going broke -- especially if you have children through a second or third marriage?
Here are a number of considerations you should be aware of:
- Don’t assume that your insurance agent or company knows about your circumstances. If you don’t change your beneficiary, your former spouse may receive the proceeds of your policy upon your death. If the designation simply reads, “husband of the insured” or “wife of the insured,” and there is no new spouse, the secondary beneficiary receives the proceeds.
- You may be able to transfer ownership rights of the policy as part of a property settlement or to ensure continuation of alimony payments. Your ex-spouse may not press as hard for more support or a greater slice of an ongoing pension if he or she remains the designated beneficiary on a permanent life insurance policy. Of course, you need to ensure that your policy remains a valuable asset by keeping up premium payments.
However, transferring an existing cash value policy (as opposed to a term policy, may carry with it the burden of federal gift tax, unless you transfer the policy prior to divorce. - continued below ...
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Be sure to discuss this option prior to the finalization of your divorce.
- Don’t overlook the possibilities life insurance may provide for dealing fairly with children from your previous marriage. If you’re paying alimony to your previous spouse and have a second family with your new spouse, adult children from your first marriage may sue your estate after you’re gone if they aren’t dealt with at least as fairly as the children from your subsequent marriage(s).
A permanent life insurance policy can be an immediate "estate replacer" to children from your first marriage -- it helps you replicate accumulated assets that you wish to pass on to the children of your first family -- but can’t afford to without neglecting the needs of your new family. Essentially, you purchase a permanent life insurance policy on yourself and designate your adult children as beneficiaries. When you die, proceeds bypass the probate process and pass directly to your adult children. Your immediate spouse and any children from that marriage are left with your accumulated property and assets -- so you’ve provided for both families.
If you’re contemplating divorce, don’t forget the options you may have with respect to your life insurance coverage. Divorce is tough enough -- don’t overlook the flexibility and security this valuable asset can provide..
About the Author
Matt McWilliams is one of the co-founders of HometownQuotes.Com, an online insurance quotes web site. He is originally from Pinebluff, NC and graduated from Middle Tennessee State University in 2002. He is considered an expert in the field of online insurance shopping and finding new ways to help consumers save money on their insurance. For more information visit http://www.hometownquotes.com.
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The Wages of Science - Part II - Sam Vaknin
In the absence of efficient capital markets and adventuresome capitalists, some developing countries have taken this propensity to extremes. In the Philippines, close to 100 percent of all R&D is government-financed. The meltdown of foreign direct...
Office Rage!! - Syd Stewart
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Work at Home - growing @ the speed of thought! - Purva Mewar
Work at home or home business is the most flourishing concept of the modern times. It has its reasons, after all! First & foremost; people have already realized Home Based Business which is done on internet from the comforts of your home is not a...
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