How Divorce Affects Different Types of Insurance
Getting a divorce affects every aspect of an individual’s life. One has to readjust their living situation, parenting schedule, and finances. Most couples have their finances intertwined, especially in terms of insurance policies. Sometimes this is because only one individual has a job; however, often times couples will use one person’s insurance policy over the other based on the benefits that job provides them with. Although jobs usually provide some sort of insurance policy, this is not always the case. Some couples seek out insurance policies of their own but still remain tied to their spouse. Continue reading to learn how your impending divorce will affect your various insurance plans.
Filing for divorce can unlink you and your former spouse’s life insurance plan; however, some divorce agreements require ex-spouses to be beneficiaries. This is common if children are involved. By naming your ex-spouse as the beneficiary, you will have a “backup plan” for your children. This is often done by the spouse who is paying alimony. In case of an emergency, the life insurance will become a safety net for your children and continue providing alimony payments if one can no longer pay them.
Remaining a beneficiary on your ex-spouse’s health insurance plan is not possible after the divorce papers are signed if their health insurance plan is provided by their employer. Most divorcees will utilize their own employer’s health insurance plan if they have not already. For those whose employer does not provide coverage, they will need to seek out health insurance themselves. One can stay with the same health insurance provider as long as they seek out their own plan.
Many people fail to remember that their car insurance will also be affected by their marriage’s termination. After the cars have been divided between the two of you, each person should contact their insurer to let them know about the divorce. Each party will be removed from the other’s insurance plan. If you decide to find a new insurance provider, looking at various providers is important. Married couples often get breaks in pricing; however, the same is not usually true of divorcees.
Contact a St. Charles Divorce Lawyer for Legal Help
Divorce is a complicated process, especially in terms of finances and insurance plans. Our attorneys understand that insurance policy changes can be difficult to understand, particularly when major life changes are happening. If you are considering divorce, contact our Kane County divorce attorneys at 630-584-5550 to help you through the process.