Should our separation agreement address life insurance in Ontario?

Yes. Life insurance is an important but often overlooked element of a well-drafted separation agreement, particularly when there are ongoing support obligations or minor children.

If one spouse is paying child support or spousal support, what happens to those payments if they die? Without a life insurance requirement in the agreement, the obligation ends with the payer's estate (in many cases), leaving the recipient and children without income. Including a clause requiring the paying spouse to maintain a life insurance policy — naming the recipient or the children as beneficiaries — provides security for those ongoing obligations.

The agreement should specify the minimum coverage amount, who must be named as beneficiary, and how the parties will confirm the policy is in force (e.g., annual proof of coverage). It may also address what happens if the payer wants to change the policy.

Similarly, if the agreement requires an equalization payment to be made over time (rather than in a lump sum), life insurance can secure the unpaid balance in case the paying spouse dies before it is paid out.

These provisions add a layer of protection that can make a significant financial difference if something unexpected happens. A family lawyer can help you think through the right coverage amount based on your specific support obligations.