If the person who pays you a monthly child support check died tomorrow, what would happen to your financial life? Ask yourself these questions: Would you still be able to pay your bills, for dance classes and for the continual stream of lost lunch boxes? Would you be one of those rare (seriously…rare) parents that had all of her paperwork in order and could access it at the drop of a dime? Would you be one of those parents (again, very rare)that has a life insurance provision in their child support order or divorce decree to replace the child support which would no longer come, or the child support which, now due to the death, will never come? Assuming that you can answer yes to each of those questions; can you now answer yes to the next one? Would you be one of those extremely rare, yet educated and on the ball parents that had a life insurance provision which is enough to cover the exact dollar amount of the loss you would incur? Yes, did you say? Great! Bonus if you can draw down that dollar amount every month to replace the child support from the interest alone and then turn over the principal amount to your child when they hit 21.

The majority of parents receiving (or those who should be receiving but are not because they have a non-paying parent on their hands) child support do not have provisions for life insurance. If the paying parent gets hit by a bus tomorrow, they are a sucker out of luck. Other parents think that they have it covered because the paying parent does in fact have a policy which lists either the custodial parent or the child as the beneficiary, but it’s one of those policies that the employer offers – maybe $50,000. What most parents don’t do is to use the insurance industry standard formula of how much is needed to replace an income at time of loss. Most people don’t even know that there is a formula.

Experts believe that a surviving custodian with children needs at least $100,000.00 worth of insurance for every $500.00 of pre-tax income. For example, if you have four children and your child support order is $3,000.00 a month ($36,000.00 per year), to replace the child support dollars you receive, you should have a life insurance policy of $600,000.00 on the father of your children.
($3,000.00/500.00 = 6; 6 x 100,000.00 = $600,000.00) of insurance to meet your bills. In the best case scenario, the surviving parent would not draw down from the $600,000 itself but would invest the $600,000.00 at a conservative interest rate of 6 % which would generate $36,000.00 a year in interest before taxes and draw down from the interest alone to replace the support lost.

What happens then when a custodial parent wants to obtain a policy on a parent but the other parent refuses or gets a policy when ordered to by the state but then the policy cancels out due to non-payment? Better yet, what happens when you have outstanding arrears and have good reason to suspect that you will never collect that money unless it’s through a life insurance policy? The answers to all three of these questions are the same – get a policy on the absent parent yourself. Of course you will want to have it written into your order that the policy must be provided but you don’t have to wait for that and you needn’t rely on it happening – even when it does get sanctioned by the courts. Contrary to popular belief, you can get a policy on someone else. If you are ready to check it out, go to my BlogSpot at www.deadbeathunter.info. I have a few companies lined up that I have been referring clients to and you can access them through the banner for life insurance. Fill out the form for insurance quotes with your information as contact person and insurance information (info on the insured) on the person that you want to insure. After you submit you will begin to receive quotes but here is the clincher… you must tell them that you want a guaranteed policy. That’s it. That’s the ticket right there in a nutshell. That is how you get life insurance without the insured’s signature. Sure, there are a couple proofs you will most likely have to provide so that the insurance company knows that you are not a maniac and are out to do something evil. But I promise you this: if you are legit you can get a policy on the absent parent. Go ahead and give it a try. Let me know how it works out for you.