Insurance can be both a risk-management tool and a wealth-accumulation tool. In terms of risk management, financial obligations between ex-spouses—alimony, child support, mortgage payments—should be protected in the event of premature death or disablement that would prevent the paying party from fulfilling legal obligations. The parent on the receiving end should be both owner and beneficiary of the policies and take responsibility for paying the premiums. As a wealth tool, any cash value inside a permanent life insurance policy and/or any value associated with a business buy/sell agreement funded with life and disability insurance is fair game when divvying assets. New single parents should also evaluate the own insurance coverage for both disability and death. 

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