Insurance: The Divorce Detail That Could Save—or Sink— You Later
During the emotional and logistical chaos of divorce, insurance often takes a backseat. However, failing to review and update your insurance coverage can expose you to significant financial risks in the future. Whether it’s health, life, or disability insurance, each policy plays a crucial role in protecting your financial well-being post-divorce.
What to Review in Your Insurance Plan
Divorce changes everything—including your insurance needs. Here are key areas to examine:
- Health Insurance: If you were covered under your spouse’s employer-sponsored plan, you may need to find alternative coverage. You might qualify for COBRA benefits for a limited time, but researching new insurance options is essential to maintaining uninterrupted coverage.
- Life Insurance: If your ex-spouse was a beneficiary on your policy, should that remain the case? Updating beneficiaries ensures that your policy reflects your current wishes. Additionally, if you rely on your former spouse for child or spousal support, consider maintaining a policy on them to protect your financial interests in case of their untimely passing.
- Disability & Critical Illness Protection: Divorce can create financial uncertainty. If an unexpected illness or accident leaves you unable to work, having adequate disability or critical illness coverage can provide a much-needed financial safety net.
- Home & Auto Insurance: If you are moving to a new home or changing vehicle ownership, you will need to update your policies accordingly. Failing to remove an ex-spouse from a shared policy could complicate future claims.
At OP Elite Wealth, our 10-step process ensures that your insurance policies are reviewed and updated to align with your new financial landscape. Taking proactive steps now can prevent costly mistakes and provide peace of mind as you navigate your new chapter.
