Going through a divorce is stressful. It requires a person to make a lot of changes that can be difficult to experience, from both an emotional and financial perspective. People who have recently gotten divorced should take a look at their existing insurance policies. You might want to make some changes to them, for your own protection.
The National Association of Insurance Commissioners (NAIC) has put together some tips that can help people who recently got divorced figure out what changes they need to make to their insurance policies. Now that your divorce has been finalized, it is time to re-focus your insurance to better fit your new needs. It may also be time to take your spouse off of your insurance, and to give your insurance agent your new address, so your policies can be updated.
You should review your car insurance policy, because there are going to be changes that you will want to make to it. First, you should let your insurance company know that you have become divorced. Bring them the necessary paperwork to show that you are the owner, and the insured party, on your car insurance. Now is the time to remove your ex-spouse from your car insurance, before he or she can get into a car accident. If your ex is still on your insurance when an accident happens, you could be liable for the damages.
Many people select their spouse as their beneficiary for their life insurance. If you have recently become divorced, it might be time to rethink that decision. If getting divorced has made you uncomfortable with the idea that your ex could receive money in the case of your death, then select a new beneficiary. If you are sharing custody of children with your ex, then there could be good reasons to keep him or her as the beneficiary. It all depends on what you are comfortable with.
Health insurance is going to be a bit tricker to deal with. If, before the divorce, you and your children were covered by your spouse’s employer sponsored health insurance, you may be able to extend that coverage through COBRA. To do this, you must contact your ex’s employer.
When that runs out, you will need to seek out another form of health insurance. If you cannot get that through your employer, then you will have to seek out health insurance from a private insurance company. If you have children, then you and your spouse will need to figure out whose health insurance will be primary, and whose will be secondary. This will make things less confusing when your children need to see a doctor.
There is the potential that you will get married, again, in the future. Before you do, you might want to consider getting divorce insurance. There is a company called Wedlock that sells policies that will act as a financial safety net in case a married couple becomes divorced. It won’t stop a divorce from happening, but it will give you some protection if you do end up divorced, again.
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