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Insure Alimony and Child Support Against Disability

To guarantee alimony and child support is paid at the death of the person making the payments – the payer would carry life insurance equal to the unpaid balance, and the policy would be owned by and payable to the surviving ex-spouse, the recipient – no problems. But what about continuing alimony and child support payments if the payer should become disabled?

While some people in white collar and professional/technical jobs may have disability income insurance through work or carry personal disability income insurance, it only insures a portion of their income, typically 40% to 60%.

So, it ranges from difficult to impossible for the payer to pay his/her own bills, let alone continue the same amount of alimony and/or child support, if suffering a long term disability. This is a “best case scenario,” as many people don’t have any disability income coverage, other than Social Security. Unfortunately, even the “best case scenario” creates substantial financial hardships for both parties.


  • The policy is owned by the recipient, and the recipient is the beneficiary of the benefits.

  • The benefit payments are equal to the total alimony, child support, and any other payments (i.e. private school tuition, medical insurance premiums, college tuition) dictated by the divorce decree.

  • The policy can be written to pay a monthly benefit for a maximum of 5 years (2, 3 and 4 year monthly payment plans are also available). If the total obligation to pay extends beyond the monthly payment period, a lump sum benefit equal to the unpaid balance of the payments is payable to the recipient.

  • The benefit amounts are not limited like traditional disability insurance benefits. If the payer’s monthly obligation is $100,000 a month for 10 years, the policy can be written to pay $100,000 a month for 5 years with a lump sum payment for the balance owed, in this example $6,000,000.

  • As the payer makes monthly payments to the recipient, the total obligation of the payer is reduced. Therefore, the disability policy should have a reducing benefit mirroring the reduction in The Payers overall obligation. The policy is not designed to reduce benefits every month, so the adjustment is made once a year.

  • This program is available for Executives, White Collar Business Owners, White Collar Professionals/Technical, most all Medical and Nonmedical Professionals, up to $1,000,000 of total coverage Modified Guaranteed Issue (MGI). No Exam, Blood, or Specimen. 5 questions answered correctly and the policy is issued.

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