A way to shield your life assurance policy while going thru a divorce.

you purchase life assurance to defend your family from loss coming from your death. If the designation simply reads, "husband of the insured" or "wife of the insured," and there's no new partner, the secondary beneficiary receives the proceeds. - you could be ready to transfer possession rights of the policy as part of a property settlement or to guarantee continuation of alimony payments. Your ex-spouse may not press as hard for more support or a larger piece of a continuing allowance if he remains the chosen beneficiary on an enduring life assurance policy. However, transferring an existing money value policy ( versus a term policy, may carry with it the weight of Fed. present tax, unless you transfer the policy before divorce. - Don't overlook the chances life assurance may provide for dealing reasonably with youngsters from your prior wedding. The insurance corporation pays their boundaries and the court action needs the policy holder to come up with the difference. Why did this have to happen? Well, as the policy holder hadn't considered this eventuality and didn't buy enough insurance.
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