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Safeguarding support payments through disability insurance

While the end of a marriage can be stressful and difficult for Pennsylvania residents, a loss of child support or alimony income because of an ex-spouse's death or disability could lead to another stressful situation. The party depending on that support for meeting monthly obligations might face financial turmoil if the support suddenly ceases. The party dealing with a disability could also face some serious legal issues because of their inability to continue making payments that the court has ordered.

The issue of the support-owing party's potential death is already taken into consideration by judges in many areas. A life insurance policy is often required as part of a divorce order, covering the at-risk support in the event of the individual's death. A similar option exists to safeguard support payments if that individual can no longer work as the result of an injury or serious health condition.

Although this type of disability insurance may be ideal for those who would be financially devastated by attempting to pay support while living on Social Security or other disability income, it can also be an excellent option in a high-asset divorce. Policies valued at greater than $1 million might require more scrutiny, including underwriting, prior to approval. However, this would be an important measure, especially if there is a concern that one's children might suffer adverse consequences due to a major financial change.

A parent who works in a high-risk profession such as construction, law enforcement or transportation might want to ask their lawyer about this possibility when discussing financial aspects of a prospective divorce with a lawyer. This would allow these details to be included in the divorce agreement. If a divorce has been finalized without such a provision, an agreement could be amended to include disability coverage after a policy has been secured.

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