Life Insurance Question From A Caring Husband

Question About Life Insurance

Why should I, the debtor, continue to pay monthly life insurance premiums if when I die my wife the beneficiary who is debt and judgment-free, has the money taken by Uncle Sam?

ambulance

Answer

You raise several good questions. Some of these are investment questions that you should consult a tax attorney about. If you set up life insurance properly, the proceeds will go to your wife outside of your estate. However, this requires following specific rules. If you are the owner of your own policy, there may be an inclusion problem. Even if the proceeds are included in your estate, your wife would not have to pay taxes unless the amount exceeds your available lifetime exclusion.

If the tax is not a problem, then you need to decide if life insurance is a beneficial investment. Finally, this is marked as a divorce question. If you are in fact divorced, you may be required by your divorce decree to provide life insurance to guarantee support payments at your death. Typically life insurance is not ordered unless the parties agree to that provision. You may want to see if she would agree to drop any insurance requirement in divorce mediation.


Schedule A Free Consultation


Name (required)

Email (required)

Message

Steve

Steve Christensen

Steve has over twenty-five years of experience as a trial and appellate attorney, thus making him one of the most experienced attorneys in his field in the state. As an attorney, Steve quickly identifies legal issues and focuses his presentation on the strengths of his client’s cases, therefore resulting in his great success as an attorney.

He has handled over 80 trials and other evidentiary hearings before judges. He has settled hundreds of cases before, during, and after a trial. Steve takes pride in relating to his clients while conveying their cases convincingly to juries and judges.

Learn More About Steve

Life Insurance Question From A Caring Husband