Everybody knows how difficult it can be to go through a divorce. The last thing one wants to have to deal with after moths of fighting are the separation of insurance. Some may find this to be an arduous task. And you are right. It is an arduous task if one is not familiar with insurance and how it works. Although, such a task as signing up for separate insurance shouldn’t be so overwhelming. Here are a few tips and tricks to help one navigate through the complex world of insurance after a divorce.
Life Insurance
One of the most crucial types of insurance to change the policy on is life insurance. In some divorce agreements, it is laid out that each ex-spouse must sign-up for life insurance and name each other as a beneficiary. Even if it is not laid out like that, it is a good idea to think about. If this is done, and if one of you passes away, the life insurance can be used in place of alimony or child support. If you are looking to keep costs low, a term life insurance policy is your best choice. This is also the policy that gives you the most choice. You can choose anywhere from a 5 year policy to a 30 year policy depending on what makes the most sense for your specific needs.
Disability Insurance
Unlike life Insurance, disability insurance covers you when you are unable to work due to medical reasons. When one is in one income household, you cannot afford to loose money for extended periods of time. According to the Social Security Administration, “The odds of becoming disabled for 90 days or more are greater than dying before retirement”.
Health Insurance
It is fine to stay with your current health insurance plan after getting divorced, however sometimes it is beneficial to start a new plan under your name. Here are a few suggestions to start a new plan:
- See if your employer offers health insurance coverage.
- Select a policy from a provider that works best for you.
- Select COBRA insurance, meaning you stay on your ex-spouses plan but pay for it yourself. This is a law that enables people up to 36 months of coverage after divorce or hardship.
Car Insurance
Unlike health insurance, car insurance needs to be separated from your ex-spouse when getting divorced. When looking at new policies it is best to shop many different providers to try to find the best deal possible. This step is especially important if you are insuring teen drivers for the reason that teen drivers are the most expensive type of driver to ensure. Along with the elderly, teen drivers are the most unpredictable drivers. Teen drivers are new to the road, and tend to have more accidents. For this reason, the insurance companies charge the consumer more to insure them because the insurance company realizes that it will cost the company more if they are to get into an accident, which teen drivers are likely to do.
Dealing with divorce is hard enough. Now try adding the separation of insurance to the mix. Unfortunately divorce does happen. When this happens it is important to get back on the horse and insure yourself for your own safety. TJ Woods, is a company that offers just that, along with ways to increase your ability to understand your options. To learn more about your options for all types of insurance after divorce, call us at (800)-696-5944 or contact us online to get a free quote today!
