Posted by (American Life Insurance Guide insurGuru©️ column) When entering a marriage, the issue of the ownership of the high-value life insurance policy is placed in front of both spouses.In response to "Life insurance policyBefore the question of who belongs, I have to mention the "marital property" system implemented in some states in the United States.
What is the "marital property system"?
The system of marital property, Community Property, refers to any property acquired during marriage,Both spouses enjoy independent, indivisible and equal ownership.
Most states in the U.S. follow the "marital property separation" system, but in the following ten states, the "marital property ownership" system is implemented:
- Alaska
- Arizona
- California
- Idaho
- Louisiana State
- Nevada
- New Mexico
- Texas
- Washington state
- the state of Wisconsin
In the above-mentioned states, the property shared by the spouse refers to "the property acquired by one of the spouses through labor (earnings) during the duration of the marriage." Even if the ownership of a property (Title), there is only the name of the spouse, But as long as this property isDuring the marriage, obtained from labor income,Both are considered to be joint property of husband and wife.
Life insurance in states with the "marital property" system
Life insurance policies purchased during the married life belong to the "marital property".If the policyholder dies due to some cause, half of the death compensation amount will be included in the policyholder’s total estate.
If onelife insuranceThe insurance policy belongs to the private property of one spouse, but after marriage,PremiumThe payment is made by "common property", so how should it be calculated?Different states have different laws and regulations.
In Texas, Louisiana and New Mexico, courts will follow the "earliest ownership" rule, and life insurance policies will continue to be the private property of the original policyholder, ignoring the fact that premiums are paid by "common property."
In the above case, if one of the husband and wife holding the insurance policy passes away, the other surviving partner can get back the total amount of premiums paid as "common property" from the insurance policy, butUnable toEnjoy the added value of the policy.
Under what circumstances does a life insurance policy count as private property?
In the state of the “marital property system”, the property acquired by both spouses before marriage is personal property; in marriage, one spouse passesInheritance, bequest, giftThe property will also be considered personal property.
Therefore, if you, as the beneficiary, receive a death benefit from a life insurance policy, the death benefit is a "Bequest"The situation, so it is completely your personal property.Similarly, a life insurance policy that you have paid off before marriage is also counted as your personal property.
(End of the full text insurGuru©️ Heather Xiong column）
