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Knowing Which Life Insurance Policy You Have Or Not?

Did you know that not all life insurance policies are the same? When you have children you should get insured to cover any expenses that may arise until that child reaches the age of a college graduate. Knowing what type of insurance policy you and your spouse has is equally important during a divorce.

Please read below to learn more about each of these policies.


The Value of Insurance Policies


Different Types of Life Insurance


There are basically two types of life insurance policies, Term Life and Permanent Life.

Term Life insurance is insurance for a set time period. After the set ‘period of time,’ the insurance disappears, and you have nothing. These can sometimes be renewed, but the insurance premiums will also increase with the insured person's age as well as any health-related issues that may crop up. Basically, you are paying a monthly fee, but you will not be able to recollect any cash that you put into this type of insurance. The Term Life policies have no cash value, but they will give you peace of mind knowing the person is covered if they die before the insurance expires. Please check and see who the beneficiary is. The beneficiary receives the insurance payout if the insured becomes deceased. If you are not listed, you do not receive the payout.


Permanent Life insurance has names like whole life, universal life, indexed universal life, or even variable universal life. These policies accrue a cash value, which can be taken out even if the covered person does not die. This is something to look at when negotiating or splitting assets. If you need or want to learn more, search the internet for: “What are the different types of life insurance policies.”

Search for life insurance policies. If you find that your spouse has taken out any insurance policies on you, your children or even themselves, fill the Value of Insurance Policy out to determine if this would be another negotiating tool that could be used.


Use the Value of Insurance Policy spreadsheet to determine what policies you have, for how much, who they insure, and when they will expire at. Email me if you have any questions or would like to learn how Divorce Games can help you analyze your marital assets at lisa.a.reston@gmail.com. Or Follow me here:



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