Support Payment Insurance
Do your clients a favor, advise them to insure their alimony and child support payments against disabilities.
Consider the statistics:
- The probability of disability occurring during one’s working years is 2 to 3 times greater than the risk of death. 1
- Almost 3 in 10 of today’s 20-year-olds will become disabled before reaching age 67. 2
- Every 90 seconds someone files for bankruptcy in the wake of a serious illness. 3
If the financially responsible spouse and payor of alimony or child support payments becomes disabled, the payments may be reduced or terminated. Most divorce agreements protect support payments against death, but do not include disability protection.
Given the fact that disability is more likely to occur than a premature death, those support payments need to be protected.
Include Disability Insurance Against Support Payments in Their Settlement Agreement
Tell them about Family ValueGuard, a Disability Insurance that protects them and their children against the adverse effects of unexpected disabilities.
Case Study: A single parent stopped receiving alimony and child support payments once a payor/spouse became disabled. Following a 90 day elimination period, the policy provided a benefit of $4,000 per month to match the pre-disability support payments. At the end of 5 years, the single parent received a lump sum payment of $240,000 to fulfill the remainder of the outstanding benefit payments.