Bike

[DnJ]

Good Morning Rock

So I can explore if I am able to get life insurance for myself tied to the mortgage so that if I die the mortgage is directly paid off. I could then cancel my life insurance with W as a beneficiary or give her the option to take that over and pay for it with her own money, if I’m reading you right.

Yes. With a policy tied to your mortgage, the premiums decrease as your principle decreases. It’s not a fixed policy, it’s based only the remainder of the mortgage amount. A so much per thousand, calculated each month or biweekly.

In your case, I understand you removed W from your life insurance and told her that promptly and you named your children as equal beneficiaries instead. Your will you were not able to alter at first.

Yes, my life insurance policy was a group insurance through work. Four times my annual salary. I could just change the beneficiaries as I saw fit. My will could not be altered until the dust settled.

Pertaining to my life, I can explore drafting my will to say that my inheritance (half of our shared assets, including pension) will go to my kids (with a trust fund managed for special needs S).

Setting up a trust fund and naming a trustee is a good plan. As well as stating the equal portions of your estate to each kid.

Pension plans are different and have different rules. My pension plan’s only possible beneficiary is my spouse. That is a survivor benefit really not so much a beneficiary. It’s basically we would be more co-withdrawing it. The survivor benefit was 2/3rds to survivor - me or W, as it is a lifetime pension.

My situation was rare, and XW signed off my pension. Taking nothing. As such, I was then treated as single, which I am, and my monthly pension amounts is higher but when I die that’s it. No beneficiaries. Aside from my actual contributed monies, which does not include the employer’s or the interest, would go to my estate. However, the plan pays out my monies first, so in only a few years my contributions are “on paper” exhausted.

Good for you setting up an appointment with a lawyer. You need to know your locale’s rules and interpretations regarding separation / divorce. Knowledge is power.

I’d consider speaking with a finical planner as well. Digging through the maze of a pension plan’s rules can be daunting. They should be able to shed some light for you, as well as help with investing / reinvesting for you future.

I was lucky, my pension provider had an online course regarding the options, contributions, early retirement penalties, buy out options, and so on. Perhaps your’s does as well, or some literature, or other resource material. They also may have seminars which they put on every now and then. My provider did that too. You had to sign up to go, and the enrolment filled up fast.

I want to do this thoughtfully and wisely and not reactively to my emotional state.

You bet. Very important decisions to consider.

Have a great weekend.

D