Myth #1 : My ex-husband has life insurance through work

Married or divorced, this is a huge risk. Most people are offered 1 to 2 times their salary through a group life insurance plan. How many years are you expecting to receive child support. Even if you were the beneficiary on this policy, given your ex-husband doesn’t remarry and name his new wife, that would only provide for one or 2 years of child support. Most surveys show that this is not enough to support you and your children.

Myth #2 : We have an old policy we bought when we were first married

In order to assure your access to that money, you must be the owner of the policy. Most policies are written with the insured being the owner. In your settlement agreement you will want to be named as the owner of the life insurance policy. This will guarantee that you remain the beneficiary, that the policy does not lapse, and that you have control over any other cash value inside the policy. It is worth it, even if you have to pay the premiums yourself, for the security and peace of mind.

Myth #3: The court ordered a policy

It is still in your best interest to own the policy so you know that premiums are being paid and the policy does not lapse. It is also imperative that you or your children remain the beneficiaries over time.