Benefits Partner

Insuring Divorce Settlement and Child Support Payments Against Disability

Until now, there hasn’t been a way to ensure divorce settlement payments (any type of payment required by a divorce decree) continue if the person making those payments, “the Payor”, becomes totally 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%. Many people don’t have any disability income coverage other than Social Security. So, if the Payor becomes disabled, it ranges from difficult to impossible to continue divorce settlement and child support payments to an ex-spouse, “the Recipient”, on top of paying his/her own bills. Unless a reduced payment has been negotiated as part of the settlement agreement, which causes financial problems for both parties, the Payor’s only option has been to got to court and file for a reduction in the obligation based on his/her current financial circumstances, which is costly and stressful for both the Payor and Recipient.

Now there is a Solution

DSI has developed a proprietary disability product with Hanleigh Management Inc., Lloyd’s of London Correspondent, which will continue the payments dictated by the divorce decree (i.e. spousal support, child support, children’s medical insurance premiums, tuition, activity fees and expenses, payments to buy the Recipient out of the Payor’s business, equalization payments, etc.) if the Payor becomes disabled. This policy guarantees 100% of these payments continue until the obligations stipulated in the decree have been satisfied. The coverage is available in addition to any personal disability insurance owned by the Payor.

Please visit the product page "Divorce Settlement Disability Policy" for a detailed explanation of the product and how it coordinates with the divorce decree.

The information found on the product page is very comprehensive.  After reviewing the documents if you have additional questions, please call Melissa Young at DSI at 888-279-8304 ext 2004 and we’ll be happy to help.

If you'd like to request a quote you may call us at 888-279-8304 ext 2004 or click REQUEST A QUOTE.  In the "Notes" field at the bottom of the form, please provide a list of the financial obligations included in the divorce decree along with each obligation's monthly dollar amount, monthly duration and the number of months following the divorce when each obligation begins.