Insuring Divorce Settlement and Child Support Payments Against Disability

Until now, there hasn't been a way to ensure divorce settlement and child support payments continue if the Payor becomes disabled. Before we discuss the solution, it's important you understand the impact of a disability on both the Payor and the Recipient.

We will refer to divorce settlement payments throughout this website. Divorce settlement payments refer to all payments the Payor is required to make, as stipulated by the divorce decree, in addition to child support (e.g., alimony, private school tuition, college tuition, medical insurance premiums, activity fees and expenses, payments to buy the Recipient out of the Payor's business, etc.).

Now There is a Solution

We have developed a proprietary disability product with Hanleigh Management Inc., Lloyd's of London Correspondent, which can pay most of the expenses dictated by the divorce decree (i.e. alimony, child support, children's medical insurance premiums, tuition, activity fees and expenses, payments to buy the Recipient out of the Payor's business, etc.) if the Payor becomes disabled.

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 CPS Horizon at 800-657-0736 8:30 AM to 4:30 PM central time.

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The Divorce Settlement Disability Policy Solution

If the Payor becomes disabled, it ranges from difficult to impossible to continue divorce settlement payments to the Recipient on top of paying his/her own bills. So, the Payor is forced to try and modify the divorce settlement payments.

Child Support: Child support is determined by a formula, in each state, that takes into account the income of both parents. Disability Insurance would count as income if the Payor is disabled.

Spousal Support: If the Payor wants to reduce divorce settlement payments, other than child support, he/she must petition the court to reduce these payments because of a "change in circumstances".

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Why Work with CPS Horizon and DSI?

CPS Horizon and DSI worked with Hanleigh's product design team, which included marketing, underwriting, claims, and legal, to design this product. We understand its intricacies (since we helped build it) and how to coordinate it with divorce decrees.

If there is an issue at the time of claim, assuming the claim is legitimate and payable under the terms of the policy, our experience has been the issues are generally caused by breakdowns in communication. DSI has been very successful facilitating accurate communication between the client and claims department, if there are issues at the time of claim. We worked with Hanleigh's claims people while developing this product, we have a very good relationship with them and can call them at any time.

We have over 20,000 people insured with Individual Disability Insurance policies and contact them annually to update their coverage. So, we have well established follow up systems to contact each policy holder when it is time to renew their coverage for another 5 year term.

Developed is a proprietary proposal system to illustrate the monthly payout each year the policy is inforce so the Payor, Recipient, and their attorneys can review the policy payout and confirm it is properly coordinated with the divorce decree.

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Let Us Help You

There is not another organization better prepared or equipped to manage the volume and administration of this program than CPS Horizon and DSI. If you are an attorney, CPA, or financial/insurance planner who would like to learn more about this, email me at mike@cpshorizon.com.