Getting divorced is more complicated than you think. Aside from the emotional stress and the hassle of going through the court process, a divorce also means having to face many changes and adjusting to a new life. Regarding insurance, getting divorced means switching coverage to individual policies in most cases, but there are a few important aspects to observe.
If you were covered by a family health insurance plan while you were married, you may be able to sign up for COBRA and enjoy the same coverage for up to three years. Naturally, you will have to pay for your specific portion of coverage until you sign up for a new health plan or until COBRA runs out. This is an ideal situation if your children were enrolled in the family health plan because you can keep them in the same policy.
This can be a bit more complicated if the terms of the divorce settlement require one spouse to obtain life insurance for the benefit of the other. The spouse who is ordered to make child support or alimony payments is usually the one required to purchase a life insurance policy. If this is not the case in your divorce, the only change you need to make to an existing policy would be to remove your former spouse from the list of beneficiaries. However, keep in mind this is a personal decision and not a requirement.
This change is easy to handle. If your former spouse was an additional driver in your Vista auto insurance policy, you can easily remove his or her name with a simple phone call to your agent. If you end up being the one removed from the policy, you will need to start shopping for individual coverage, which may be a bit more expensive now that you are no longer married. If your children are teen drivers, you and your ex will need to include them in your individual policies.
A Vista homeowners insurance policy should only be in the name of the actual homeowner. If the distribution of marital property gave you title to the house, contact your insurance agent so the policy can be changed to name you as the sole homeowner, along with the bank if there is a mortgage attached. If the marital abode is a rental home that your former spouse is moving out of, you should also remove his or her name from the renter’s insurance policy.
Disability Income Insurance
If you are ordered to make child support payments, the divorce settlement may require you to purchase a disability insurance policy. Similar to a court-ordered life insurance policy, you will have to pay the premiums. However, your former spouse will not be a beneficiary. Should you become disabled, this policy will provide you with monthly income you can use to continue meeting your child support obligation.
If your marital status is changing, get in touch with American Tri-Star to find out how we can address your insurance needs. We are a leading provider of auto insurance, and we also offer affordable home, health, RV, and motorcycle insurance. Vista residents can rely on the friendly and knowledgeable agents at American Tri-Star. Call 760-758-1600 today.