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Wednesday, November 18, 2009

Getting a Divorce? Don't Forget Insurance

Almost all married couples name one another as beneficiaries with their life insurance policies. Minimally, you will need to change the beneficiary on your life insurance policies. You will need to adjust the amount of coverage which you have been paying for especially if your soon to be ex spouse is not employed and you plan on working to support your family as well as yourself. There are many factors which you must consider when replacing your income, paying off debt and many other factors.

Your health insurance came with your job but keep in mind that if your soon to be ex spouse is not working; they will be at risk because of the divorce since they will no longer be covered as dependents on your health insurance policy. If you work and you have health insurance under your employment coverage, the divorce is a qualifying event and you can switch your health coverage without waiting for an open enrollment date.

Call your insurance company for your soon to be spouse's policy and ask for a certificate of insurance. This will prove that you were insured until the qualifying event this will allow you to not be excluded or charged higher rates for a possible pre-existing condition.

If you currently are not employed, you are still eligible for coverage under COBRA. COBRA is a federal law which allows you to continue the coverage for a particular time under specific conditions. Word of warning, COBRA can prove expensive due to the full premium payments. Your goal if you have to utilize this option is to utilize COBRA temporarily.
There are groups and associations which offer group insurance which you might be eligible for. You can also buy individual health insurance privately but you should know that the rates are typically much higher as compared to a group policy with benefits.

If you have homeowners insurance, this will cover your house and your assets in your home. If you decide to downsize while moving into an apartment, you will need renters insurance to cover the cost involved with possible losses of your assets. Make sure you inventory your things for you might have to buy riders to cover them if warranted.

There are many insurance carriers within the market. The choices are abundant for life insurance companies. You should contact a financial or insurance professional who can aid you with weighing your options for life insurance while determining what is the best course

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