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  • Yes or no on Insurance Coverage?

    What are the legal obligations that my husband has for his life insurance policy now that we're separated? I was told by a mediator that I have to be kept as the beneficiary and coverage is based on his income. Now that he's older though, he might not qualify to get additional insurance. The mediator recommended 700k coverage instead of 100k as it now stands. Please elaborate - Is this a legal requirement in Ontario or a suggestion?

  • #2
    What does it say on your separation agreement? That is the requirement. If the agreement does not say he needs insurance, then he does not need insurance, and he is unlikely to get any.

    If you are creating a separation agreement, and your ex is old, traditionally support is paid out as a lump sum to avoid the sticky issue of your ex dying before you.

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    • #3
      Just curious, has occurred that you should also have insurance with him as beneficiary? To replace your CS contribution according to your salary.

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      • #4
        Originally posted by dinkyface View Post
        Just curious, has occurred that you should also have insurance with him as beneficiary? To replace your CS contribution according to your salary.
        Excellent point that is often overlooked. If you are getting CS and have majority access time with the kids when you pass on the responsibility will fall on the other parent. You should have life insurance in this situation too as the other parent will need to retain full time care as they are employed.

        The sauce that is good for the goose is good for the gander.
        You can't blow hot and cold at the same time.

        etc...

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        • #5
          My understanding is that the paying spouse is usually required to have life insurance to secure SS/CS payments. I was told that typically, the paying spouse is responsible for the premiums as well.

          However, we all know that the premiums for life insurance go up significantly as you age. I was told verbally by a family law lawyer that in many cases the payer simply stops paying the premiums if they become too expensive.

          I suspect that if the paying spouse died without insurance, the receiving spouse would have to make a claim against the estate.

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          • #6
            When I divorced my lawyer told me that if I wanted life insurance payments on my ex I would likely have to pay for it myself. I contemplated this but then realize I'd be wasting my time because my ex would have to submit to medical screening. (To this day I think my lawyer was incorrect and merely trying to cover for not negotiating life insurance at time of separation.)

            I don't know much about child support but I believe BOTH parents are responsible for costs of raising child based on their respective incomes are they not? Therefore it would stand to reason that both parents should be responsible for life insurance for their portion of child support?

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            • #7
              Sigh. Just another example of how there really are few hard rules in this business. My case only involves SS but I can see how for CS it should apply to both.

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              • #8
                Pretty much everything to do with SS has to be negotiated... no hard and fast rules. In the event of collecting money from estate, you would only be successful in collection of arrears (including lump-sum) I believe. If someone is supposed to receive lump-sum over a period of time, and the payor dies before the amount is paid, it would certainly be windfall for lawyers disputing as well as estate lawyers. Anyone agreeing to lump-sum payout over an extended period of time should most definitely insist on life insurance IMO.

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