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You may already have a life insurance policy for yourself or your children, but what about your ex-spouse? You might consider it if you depend on them financially. That typically means you're reliant on their child support and alimony payments. Just know that you'll have to jump through a few hoops to get approved. If you get the green light, and something happens to your ex, the policy could help you take care of financial needs that would otherwise go unfulfilled.
Why Would You Buy Life Insurance on an Ex-Spouse?
Going through a divorce can disrupt your finances in a big way. The main reason to buy life insurance on an ex-spouse is to preserve your financial health—and potentially that of the children you had together—if your ex were to pass away. For example, if something were to happen to them without insurance, your child support and alimony payments could come to a screeching halt.
To take out a life insurance policy on your ex-spouse, you'll need to prove that you have an insurable interest. That means you'd experience financial hardship if you stopped receiving income from them.
During divorce proceedings, the court may require one spouse to maintain life insurance for a certain amount of time with their ex-spouse listed as the beneficiary. This is called court-ordered life insurance. It doesn't require you to take out a policy on your ex, but it can serve the same function of securing alimony and child support payments if your ex-spouse passes away.
How Do You Buy Life Insurance on an Ex-Spouse?
The process of buying life insurance for an ex-spouse is a little different from purchasing a policy for yourself or a child. You'll have to prove you have an insurable interest, and your ex-spouse must agree to be insured: Even if you're the one who will be paying for the policy, your ex-spouse will have to consent to it. They'll likely be required to sign the application or an affidavit confirming that they understand what's happening. As for the cost, that will vary depending on the following factors:
- The type of life insurance you get
- How much coverage you purchase
- Your ex-spouse's health, age and lifestyle
You'll want to shop around for the best rate. For an idea of what it might cost to insure an ex-spouse, a 10-year, $250,000 policy for a 30-year-old man in excellent health typically costs $10 to $15 per month, according to eFinancial.
Every insurer is different, but some may require your ex-spouse to undergo a health exam. No-exam life insurance policies are out there, but they tend to cost more, and your coverage may be limited. Your ex-spouse will also need to participate in the application process to some degree. This includes answering questions about their health and family medical history. They'll probably have to submit personally identifiable information as well, such as their Social Security number.
You may not be able to buy a policy on your ex-spouse if:
- You cannot prove an insurable interest
- Your ex-spouse doesn't consent to the policy
What Are Some Complications to Look Out For?
You can purchase a life insurance policy on your ex-spouse at any time, assuming you have their permission and can prove that you're financially dependent on them. As an alternative, you might explore court-ordered life insurance during the divorce process. Again, this would require your ex-spouse to name you as the beneficiary on their life insurance policy. One potential downside is that the policy will be out of your hands. If they stop paying their premiums, it could lapse. (If you have an existing policy for yourself and your ex is named as the beneficiary, you can choose a new beneficiary whenever you like.)
When you take out a life insurance policy on an ex-spouse, it will make no difference if they remarry or your children age out of child support. If it's a term policy, which is generally more affordable than permanent life insurance, the policy will simply expire when the term ends. A whole life insurance policy never expires. Premiums are usually higher, but these kinds of policies accumulate cash value over time. Your ex-spouse will not have access to these funds if you own the policy.
The Bottom Line
It's possible to take out a life insurance policy on an ex-spouse in certain situations, but you'll just need to prove that you rely on them financially. Alternatively, the court may order your ex to name you as the beneficiary on their life insurance policy for a specified amount of time.