Five Insurance Changes to Consider After a Divorce

11/13/2019 00:00 Comment(s)

There is a lot to do after a divorce but at least you don't have to tackle the insurance alone when you work with a full service agency like Dayton's Bluff Financial. Call or email us to schedule a comprehensive policy review if you're recently divorced (or if you're not-so-recently divorced and haven't reviewed your policies).

Update Your Auto Insurance

Unless your divorce decree says otherwise, you may be able to drop your ex-spouse from your auto insurance.

Update Your Employer-Paid Benefits

You may be required to maintain employer-paid life and health insurance for your children. Reach out to your company's human resources department to make any changes to your coverage. A divorce is a qualifying event so you do not need to wait until your company's open enrollment period to do this.

Purchase a Critical Illness Policy

If you do not already have it, consider purchasing a policy with critical and chronic illness coverage. Now that you're the only earner in the household, you'll need to protect your income in case you get sick and can't work. You can do this with policies for specific illnesses or by purchasing life insurance with living benefits included (often at no additional cost).

Review Your Life Insurance

If you have children, you may be required to maintain life insurance with them as the beneficiaries. Be sure to bring your decree to your meeting with your agent so that you can clarify whether they must be listed as irrevocable beneficiaries or not. You'll also want to make sure you buy at least as much coverage as your divorce decree requires.

Update Your Beneficiaries

Lastly, review your beneficiary designations on all of your policies. You may want to remove your ex-spouse from those policies and designate a more appropriate beneficiary.

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