Naming a child beneficiary on a policy over a spouse?
I want to know how many of your are in a situation where the step-child is named beneficiary on the Insurance Policy….we are in court right now…(home away from home it seems in custody/visitation/support issues) and trying to amend some things and our attorney asked if my SD, the 5 year old, is named beneficiary on my husband’s life insurance policy and if we wanted to write that into the plan…well my response was no she is not and no we do not…I guess my question is why would someone do this? If my husband dies, then she will get Social Security payments until she turns 18 or 22 if she attends college, which are more then she gets in child support right now anyway…but she is 5 years old…so more likely than not if she did get an insurance pay out, that money goes to her mother regardless…not in a trust….also, when men set this up with the court and re-marry, then they have to take out additional life insurance to cover the spouse b/c I’m sure it is VERY HARD to change the beneficiary from the child to a spouse once it is written in a court order…probably illegal to do so…I guess the way I see it…my household depends on my husbands income and we new wives would be the ones expected to cover his financial obligations that are outstanding i.e. mortgage, car loans, and any other debt outside of student loans….(side note…ladies you are NOT RESPONSIBLE for your husband’s student loans in the event of death…you’d be surprised how many people pay those off!)…I don’t know maybe it is selfish of me but I don’t get this as a practice! Are any of you in that situation?