Following a dissolution or legal separation, one or both of the parties may be required to carry a life insurance policy (http://www.ameriprise.com/budgeting-investing/financial-planning-articles/saving-and-budgeting/insurance-concerns-after-divorce.asp). A newly-single parent may need to take out a policy to provide for their children in the event of death. The insurance money can take the place of what the deceased parent would have paid in child support and/or shared expenses.
There are two options when considering life insurance: whole life and term coverage. It’s possible term coverage may be more appropriate because it can be structured to provide for the children until they are emancipated. As with any financial planning, you should seek out the advice of a professional to learn what is right for you and your children.
The lawyers at Ruppert & Schaefer, P.C. can assist you with what financial planning may be required in your case and help you find the right professional to handle your affairs. If you would like to schedule an appointment with one of our attorneys, please call (317) 580-9295.