Episode 69 of the Divorce and Your Money Show discusses the top five insurance changes you need to make following your divorce.
Insurance is often an overlooked aspect of a divorce. Shown below are the five types of insurance:
- Life insurance
- Health insurance
- Disability insurance
- Auto insurance
- Home insurance
Life insurance is the most important one on the list. It holds the name of the beneficiary designated to receive money upon your death. Life insurance also has two subcategories: term insurance and whole life insurance. Keep in mind these two points about life insurance in a divorce.
- If your ex-spouse is a beneficiary on the policy, they shouldn’t be after the divorce.
- You can have your ex-spouse name you as the beneficiary during the settlement.
Health insurance has been covered in detail in the thirty-fourth episode of this show. If you have health insurance through your employer, divorce doesn’t change that. Whether or not you use the COBRA insurance option, be sure to keep yourself covered through the whole process.
Disability insurance protects you in case you become disabled. It can pay you a portion or a full salary. It should also be considered when securing alimony and child support. Having both life and disability insurance can help you be more secure for the future.
Both your auto and home insurance also need to be updated.
Key Learning Points:
- Insurance is one of the overlooked but important aspects of divorce.
- You need to change the name of the beneficiary on your life insurance if it is your ex-spouse.
- You can have your ex-spouse get life insurance and name you as a beneficiary.
- Health insurance information needs to be changed after a divorce.
- Disability insurance along with life insurance can keep your future secured following a divorce.
- Names on auto insurance and home insurance should also be updated if required after the divorce.
Thank you for listening to the Divorce and Your Money Podcast. We hope the show helps you through one of the most difficult periods of your life. Shawn Leamon is also author of Divorce and Your Money: The No-Nonsense Guide. One-on-one divorce coaching services are available at www.divorceandyourmoney.com.
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