The purpose of a prenuptial or postnuptial agreement in New Windsor, NY is to protect your finances in the event of death, divorce, or separation. So, you may wonder if life insurance policies are part of your financial protection. We can confirm that you can add life insurance to your agreement, but you must word it correctly, or it won’t be enforceable in court.

How can you legally include a life insurance clause in a marriage contract?

You include in the contract that you want your spouse to get a life insurance policy, add you as the primary beneficiary, decide the death benefit amount, the policy duration, and select a deadline to get the job done. However, the spouse can ask you to do the same.

To satisfy requirements, the spouse must visit Bryan Insurance Agency LLC or another insurance agency and open a new life insurance policy with all the provisions included before the set deadline. What is not acceptable is letting the marriage contract double as a life insurance policy or forcing your spouse to sign the contract under duress, coercion, or fraud.

What about existing life insurance policies in a marriage contract?

If one or both have life insurance policies, you could keep the existing policy and request modifications. You could also request to close the life insurance policy or combine it into another policy. Existing life insurance policies also include third-party policies from family, friends, exes, and others where you are a beneficiary. You can add a provision that says third-party life insurance policies are not eligible for divorce proceedings. The agents at Bryan Insurance Agency LLC will assist you further with marriage contracts.

A life insurance clause in a prenup or postnup is optional. Adding it depends on the importance of your financial future. We can review existing policies and compare them to your prenuptial or postnuptial agreements to confirm they meet legal standards. We will also draft a new life insurance policy for your marriage contract. Contact our office in New Windsor, NY for more information.