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Divorce & Family Law This forum is for discussing any of the legal issues involved in your divorce.

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Old 06-21-2016, 08:11 PM
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Default Life insurance changes

Question about life insurance and clauses in SA.

My partners agreement says he is to a) keep the joint policy he and his ex had (but separate it) for a certain amount and b) open a second policy for a lesser amount. His ex has to keep her insurance policy via work.

In addition to these he also has a third policy he has carried over from before his marriage that is not listed in the agreement.

Problem--the (a) policy is term and is expiring and to renew it his premiums triple or quadruple. He may not even qualify for the renewal since its been ten years, his health is different etc.

Could he take his personal life insurance that wasn't ordered, up the payout to the (a) amount and replace the insurance in the agreement? If no, what would happen if he no longer qualifies for coverage on that renewal?

He would still have the same coverage it just wouldn't be the policy listed.
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Old 06-21-2016, 08:44 PM
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Does the agreement give any specific direction on what happens if the policy lapses?

Logic says that the purpose of the insurance is to provide for the financial responsibilities he has should he pass away before his child and spousal support obligations are completed. Over time, those financial responsibilities do decrease, so perhaps he would be ok to have a lesser amount now to replace the original? And this may not be quite so bad for insurance premiums?

I doubt he would be penalized for this policy ending because ate what happens with term life insurance, nor is a court likely to order someone to obtain a new policy if the rates are exhorbant, I think he'd probably be ok with a lesser amount policy so long as it adequately voters his obligations.

Personally I wouldn't bring the other policy he has into the question, but again that's just me personally.
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Old 06-21-2016, 10:22 PM
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Policy a) was a joint policy that is coming to term. Does that mean hers part of that policy is about to expire too? If so her premiums would increase as well. Maybe she doesn't want to pay the increase either. She might be willing to agree to have both policies dropped... since they both have other policies anyway.

eta: Who is the beneficiary on the policy from before the marriage?
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Old 06-21-2016, 10:51 PM
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They severed the policy they held jointly. The language just says what he is supposed to do. The third policy beneficiary is a friend who has instructions in his will to use the money to pay off the mortgage and funeral expenses with the remaining going to his kids.
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Old 06-21-2016, 11:03 PM
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Wouldn't he then have satisfied the terms? If it just said he had to keep the policy and nothing about renewing it or specifying that he always has to have x amount of insurance, then wouldn't it read that he has fulfilled his obligations regarding that particular policy?
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Old 06-24-2016, 10:56 PM
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Today he found out his premium was going to be six times the amount so hes going to cancel. We reread the agreement. His lawyer was brilliant in that she had a clause put in that they can review their policies five years from the date of the agreement and then determine how much coverage is necessary based on the remaining obligations for child support. Technically if he uses his current income and the next five years of cs is less than half the coverage he currently has with his own policy. Whew!
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Old 06-25-2016, 12:05 PM
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Quote:
Originally Posted by rockscan View Post
Today he found out his premium was going to be six times the amount so hes going to cancel. We reread the agreement. His lawyer was brilliant in that she had a clause put in that they can review their policies five years from the date of the agreement and then determine how much coverage is necessary based on the remaining obligations for child support. Technically if he uses his current income and the next five years of cs is less than half the coverage he currently has with his own policy. Whew!
I had term policy and instead of renewing it, my advisor said it was much cheaper to just do new term policy.
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Old 06-25-2016, 01:33 PM
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Default Life insurance changes

Thats what his advisor said too. We didnt read far enough into the insurance section of their agreement. The last clause outlined that they could review after five years and determine if it was necessary to keep so much insurance. Their agreement is so confusing that sometimes we get stuck on the first clause and dont realize there are other conditions that make that first one moot.

I should add that the panic was because he didnt want to ignore the agreement. His ex only follows clauses that benefit her and misinterprets the clauses that allow for equality. He doesnt want to follow her refusal to adhere to the agreement. He wants to be able to say hes following it.
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Old 06-25-2016, 06:37 PM
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I totally understand. Sometimes I am the same way also...see the bad part and just focus on that instead of seeing if there is a loophole some kind.
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Old 06-28-2016, 12:17 PM
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Interestingly, I don't think somebody can ordered to procure life insurance, you can only be ordered to maintain an existing policy, and can be ordered to make the beneficiary irrevocable.

Not 100% sure on that front, but that seems to be implied from the cases I have read.

If you don't have to provide proof, then just cancel the insurance and lie. The only time it would matter is if you were dead, at which point you are beyond the reach of our justice system.
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