Child support and alimony payments end on the payor's death. What if the payor dies before the end of child support or alimony duration? One way to protect these payments-and to ensure that you continue to get child and spousal support--if the payor dies is to obtain or maintain an existing a life insurance policy on the payor's life.
The recipient of payments can obtain an insurance policy. This is something that should be discussed and written in the parties' agreement. The payor would agree to cooperate in the process of obtaining the life insurance policy, such as undergoing a physical examination. The owner and beneficiary of the life insurance policy should be the person receiving the child support or alimony payments. This ensures that the premiums are being paid timely. It keeps you in control of the policy and making sure it is in full force and effect. The party who is responsible for paying the costs of the premium can negotiated. The policy should be term life insurance to reduce the costs. The face value amount of the policy may decrease as children become emancipated. If the policy is owned by the payor spouse, the payee spouse should be protected by a provision that states that if the policy's face amount is less than agreed at the payor's death, then the payee shall have a creditor's claim and a lien against the payor's estate for the difference between the proceeds to which the payee is entitled and the amount that payee actually receives upon the payor's death. The key point is to make sure the payee spouse pays the premiums and has full access to communicate directly with the insurer and receives all paperwork regarding the policy.