Did you know that alimony is an insurable interest? Any type of alimony ceases upon the death of the payor. This means that if your spouse passes away while still paying you these monthly dues, you may lose your only substantial source of income. It is very important to include life and disability insurance policies in an amount that is sufficient to replace the alimony if your spouse should pass away. This way, you can guarantee a financially safe future despite the unexpectedness of life.
The recipient has an insurance interest in the person that is insured. You may want to buy the policy yourself in the event that life and disability insurance may not be a part of a divorce agreement. If you want more information about insuring yourself against the loss of alimony, talk with a Los Angeles divorce attorney at Claery & Hammond today. We will help you to determine the best way to handle any alimony payments and insurance.