Can Child Support Orders Include Life Insurance Obligations?

Family courts often include life insurance obligations within child support or custody orders to provide an additional layer of financial security for the child. Life insurance ensures that in the event of a parent’s untimely death, funds are available to support the child’s ongoing needs. Courts may require one or both parents to maintain policies with the child or custodial parent as beneficiary, and enforce these requirements through legal mechanisms.

Inclusion of Life Insurance in Child Support Orders

Purpose of Life Insurance Obligations

To safeguard the child’s financial future if the supporting parent passes away unexpectedly.

Ensures continuity of support beyond the parent’s lifetime.

Court’s Authority

Courts have the power to order maintenance of life insurance as part of support or custody orders.

The type, amount, and duration of the policy can be specified by the court.

Policy Requirements

Policies usually name the child or custodial parent as the beneficiary.

The court may require proof of premium payments and policy maintenance.

Enforcement

Failure to maintain the ordered insurance can result in contempt of court or modification of support orders.

Courts can order the insurer to notify the court of policy lapses.

Variations by Jurisdiction

Some jurisdictions have specific laws or guidelines about life insurance in support cases.

Courts consider financial capability when ordering insurance.

Practical Considerations

• Parents should disclose existing life insurance policies during financial disclosures.
• When no policy exists, courts may order one to be purchased.
• Premium costs may or may not be included in support calculations depending on the case.
• Parties should keep documentation of insurance policies accessible for court review.
• Life insurance obligations typically continue until child support ends or the child reaches majority.

Consumer Safety Tips

• Maintain life insurance policies as ordered by the court.
• Keep beneficiaries updated according to court instructions.
• Provide proof of insurance premium payments when required.
• Consult your attorney if facing difficulties in maintaining insurance.
• Understand your obligations and seek court modifications if financial circumstances change.

Example

In a child support case, the court orders the non-custodial parent to maintain a $200,000 life insurance policy with the custodial parent as the beneficiary until the child turns 18.

Steps involved:

• The parent obtains the life insurance policy and submits proof to the court.
• The parent pays premiums regularly and provides receipts or proof of payment during court reviews.
• If the parent stops paying premiums or cancels the policy, the custodial parent files a motion for enforcement.
• The court may hold the parent in contempt or adjust support orders accordingly.
• The insurance coverage continues until the child reaches adulthood or as per court order.