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The importance of divorce disability insurance coverage

A California divorce decree may have to be revised if an individual obligated to pay child support or alimony becomes disabled and unable to continue to make the required payments. Both parties to the divorce agreement can be affected negatively by a disabling disease or injury because of the impact on the injured party's income. Without a modification to the terms of the divorce, the injured party could fall behind and face legal consequences, while the other party would suffer financially due to the lack of funds. Planning for this possibility with special insurance policies could save both parties from such difficulties.

In many cases, courts will require an individual to carry life insurance that will pay the remaining child support and alimony obligations in the event of their death. A disability policy might not be ordered, but this could be a wise investment to be sure that the needs of one's children are met if a disabling condition occurs. It is possible to include this provision in a divorce decree, and obtaining such a policy after the completion of a divorce warrants a modification to ensure that the details are recorded.

In high-asset divorces, such a policy might need to be underwritten. Policies that are valued at less than $1 million can typically be obtained without underwriting, and these policies tend to be affordable. Although these products are aimed at white collar and gray collar workers, those working in blue collar professions may also benefit from such protection.

An individual who owes child support might hesitate to seek legal guidance in case of a job loss, major illness or disabling injury. However, child support obligations won't be adjusted without court approval. This makes it wise to seek assistance from a lawyer promptly to avoid becoming seriously delinquent in one's obligations.

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