Divorce is never easy—emotionally, legally, or financially. Amid the whirlwind of paperwork and decisions, one area that’s often overlooked is insurance. Yet, failing to update or secure the right coverage during this transition can leave you and your loved ones vulnerable. Divorce is a major life change, and your insurance should reflect that. Here’s a breakdown of key things to know about insurance during and after divorce.
Insurance After Divorce: What to Review
1. Start with a Full Insurance Inventory
Before making any changes, take stock of all the insurance policies you had during your marriage. Ask yourself:
- Which policies are still relevant?
- What coverage do you need now?
- How will health insurance be handled for you and your children?
- Are there any gaps that need to be filled?
2. Health Insurance: Don’t Leave It to Chance
Health coverage should be clearly addressed in your divorce decree. This includes:
- Who will provide insurance for the children?
- Who is responsible for unreimbursed medical expenses?
If you were covered under your spouse’s employer-sponsored plan, you might be eligible for COBRA coverage for up to 36 months. But remember—this isn’t automatic. You must notify the employer within 60 days and complete the necessary paperwork.
If COBRA isn’t an option, you’ll need to explore individual health plans. We can help you compare options and find the right fit.
3. Life Insurance: Reassess and Update
Life insurance is crucial, especially if you rely on your ex-spouse’s income for support. Consider:
- Updating beneficiaries
- Ensuring your ex carries adequate coverage (with you as a beneficiary if needed)
- Increasing your own coverage if necessary
All life insurance details—policy amounts, beneficiaries, and cash values—should be documented in your divorce agreement. Always consult your attorney before making changes.
4. Disability Insurance: A Safety Net for Support Payments
If alimony or child support is part of your divorce, disability insurance becomes even more important. It provides income if the payer becomes unable to work due to illness or injury.
We can help you determine the right type and amount of coverage to protect your financial future.
5. Homeowners & Renters Insurance: Update Ownership and Coverage
If one spouse remains in the marital home, the homeowners policy should be updated to reflect the new ownership. Review your coverage and consider:
- Switching to replacement cost coverage (to cover the full cost of replacing items)
- Raising your deductible to lower your premium
Renters should also ensure their policy reflects their new living situation and possessions.
6. Auto Insurance: Separate and Simplify
Once you’re living separately, you’ll need individual auto policies. Be sure to:
- Remove your ex from your policy
- Update your address and vehicle information
- Consider adding extras like roadside assistance or rental reimbursement
Let us know when your marital status changes and we’ll help you adjust your policy accordingly.
7. Additional Coverage to Consider
Depending on your new circumstances, you may want to explore:
- Umbrella Insurance: Extra liability protection beyond your standard policies
- Long-Term Care Insurance: Coverage for future health needs, especially if you’re now planning independently
We’re Here to Help With Insurance After Divorce
Don’t make the mistake of overlooking your insurance needs when going through a divorce. The lack of adequate insurance for yourself, your children and even your spouse can lead to financial hardship.
Whether you need help updating policies, exploring new coverage, or simply understanding your options, our team is here to guide you every step of the way. Contact us today to schedule a personalized insurance review and ensure you’re fully protected for the road ahead.
