Life insurance during a divorce.
Let’s face it; getting divorced can be expensive and stressful. This is why getting “blindsided” by a judge’s or opposing councils request for one to get a life insurance policy on one’s self so that you can finally settle your divorce is never a good feeling.
This is why…
In this article, we wanted to take a moment to try and answer some of the most common questions we get from those looking to purchase a life insurance policy to settle a divorce decree. Questions that will be addressed in this article will include:
- What “kind” of life insurance policies will most judges accept?
- How long will the process of applying for coverage take from start to stop?
- What if I can’t qualify for a traditional life insurance policy?
- What can I do to improve my chances at qualifying for the “best” policy for me?
So, without further ado, let’s dive right in!
What “kind” of life insurance policies will most judges accept?
Generally speaking, when a judge orders an individual to purchase a life insurance policy to satisfy a divorce decree, what they’re basically telling you is that you need to go and purchase either a term or whole life insurance policy.
Now it will be…
Important to know which “type” of insurance policy you will need because generally speaking, a whole life insurance policy (designed to last your entire life) will be much more expensive than a term life insurance policy which will be set to expire some time in the future, usually either 10, 15, 20 or 30 years from now.
If you can purchase a term life insurance policy, it would also be useful to know whether or not there is a specific “term” your judge has in mind so that you can specifically “shop” for that particular policy. This is important because sometimes, different insurance companies will be more competitively priced for longer terms than other companies.
How long will the process of applying for coverage take from start to stop?
Once we’ve determined what “kind” of life insurance policy a judge or council is going to require someone to get, we’ll then want to turn our attention on what “kind” of life insurance one will likely be able to qualify for.
It is here…
Where we will begin asking questions such as:
- How old are you?
- What is your current height and weight?
- Have you ever been diagnosed with any pre-existing medical conditions?
- Are you currently taking any prescription medications?
- Have you ever suffered from a heart attack, stroke or been diagnosed with diabetes or cancer?
- Have any of your immediate family members ever been diagnosed with cancer, heart disease or diabetes?
- In the past 12 months, have you used any type of tobacco or nicotine products?
- In the past 12 months, have you used any type of marijuana products?
- Have you ever been convicted of a felony or misdemeanor?
- Do you have any issues with your driving record? Issues such as multiple moving violations, a DUI or a suspended license?
- Do you have any history of drug or alcohol abuse?
- Do you participate in any dangerous hobbies like skydiving?
- Are you currently working now?
- In the past 12 months, have you applied for or received any form of disability benefits?
We ask these questions for three reasons.
- First, we want to know whether or not you’re going to qualify for a traditional life insurance policy.
- Second, we want to know what kind of “rate” you might qualify for?
And lastly, we’ll want to know whether or not you might be able to qualify for a No Medical Exam Life Insurance policy, which would significantly speed up one’s approval process.
Sometimes qualifying for a traditional life insurance policy can take a while. Especially if you’re:
- Have been diagnosed with a pre-existing medical condition (or two),
And/or are applying for a rather large life insurance policy. In cases like these, what you might find is that in addition to having to complete an application, some life insurance companies may want to order their medical records from their doctor(s) as well.
A process that can add a few weeks to the entire application process.
This is why…
Whenever possible, we’ll usually try and recommend that anyone who might be able to qualify for a No Medical Exam Life Insurance policy try that first because if they do qualify, the whole application process can be shortened to 24 or 48 hours!
What if I can’t qualify for a traditional life insurance policy?
Sometimes, some folks won’t be able to qualify for a traditional life insurance policy whether that’s because they have been diagnosed with some type of pre-existing medical condition in the past which makes them ineligible or because of some type of “lifestyle” choice that’s preventing them from being able to qualify.
In either situation…
Getting insured isn’t going to be an option. In cases like these, what we have found is that an individual is either going to need to provide a letter from an insurance company stating that they have been denied coverage.
They can provide a letter from an insurance agent stating that he or she doesn’t believe they will be able to qualify for coverage base on certain factors.
In either situation…
What we here at IBUSA like to do, is provide guidance to a client on when or if they may one day be able to qualify for coverage in the future. For example, some individuals may not be able to qualify for coverage today because they:
- Went into remission from their cancer six months ago, but could qualify for coverage in a year or so.
- Have a felony on their record that dates back four years ago, and they won’t be eligible for coverage until it’s been 5 years.
- Or perhaps it’s because they have been diagnosed with asthma, and they currently use tobacco. In cases like these, once they are tobacco-free for one year, they will likely be eligible for coverage.
This is where a letter stating one’s current situation can be quite helpful to demonstrate that you are trying, but you just can’t qualify right now.
In cases like these, one is operating in “good faith” to try and comply with the court’s orders; it’s just not physically possible!
Which brings us to our last topic…
What can I do to improve my chances of qualifying for the “best” policy for me?
In our experiences here at IBUSA, what we have found to be the number one factor in helping someone find the “best” life insurance policy for is…
Honest and options.
This is because…
When a client is honest with us about all the “factors” that could come into play when determining what kind of “rate” they may be able to qualify for and we have plenty of options to choose from, the chances that we’ll be able to find that “perfect fit” goes way up.
This for course assumes…
That you choose to apply with a life insurance brokerage like IBUSA which has access to dozens of different life insurance companies and only hires true life insurance professionals with the knowledge and expertise you’ll need or order to be able to sort out which life insurance company is going to be the “best” for you.
So, if you’re ready to see what options you may have available to you, just give us a call. We’re here to help!