Court-ordered life insurance protects financial obligations after divorce by requiring one spouse to maintain coverage for the other’s benefit.

In divorce settlements, courts may require one spouse (typically the payor of support) to maintain a life insurance policy that names the other spouse or children as beneficiaries. This requirement serves as financial protection, ensuring that support obligations like child support or spousal maintenance continue even if the paying spouse passes away.

• The policy amount typically matches outstanding support obligations
• The court order specifies required coverage duration and beneficiary details
• Regular proof of premium payment and coverage may be required
• Failure to maintain the policy can result in legal consequences

It’s essential to work with a family law professional to understand specific requirements and ensure proper policy setup and compliance with the court order.