Divorce has adverse effects on the lives of a couple and insurance is just one of them. As much as there are many other things that may be affected more by divorce such as kids, assets, investments and other factors may be affected too. That is why it is said that divorce should be the last result, like the last option after many other options have been tried out and not worked. Unfortunately, there are rising cases of divorce and not many have disocvered the secret of counseling as couples who go for counseling prior to divorce most of the times cancel the divorce. For the case of an n insurance cover, most of the time the terms of the cover has to be revised since divorce changes everything. Some of the ways in which a divorce can affect insurance includes:
In the case of a divorce, life insurance is almost mandatory. The custodial parent should make sure that the non-custodial parent has life insurance to make sure that the child support payments does not end even when your spouse dies. Life insurance can help in protecting you and your children in case of sudden death. The insurance however is mainly determined by the agreement, in some cases the agreement may require non-custodial parent to take a life insurance and state the custodial parent as a beneficiary.
Health insurance cover in most cases, one spouse normally provides a cover that will cover both spouses. In the case of a divorce, the coverage of one parent will have to end as he terms will change. There are some plans however that will continue to cover the kids.
Disability income divorce
Even if you receive child support, if your former spouse becomes disabled then that will cause a problem on your part. If the other spouse does not have disability insurance, the alimony may be modified thus reducing the child support that you will receive. Disability insurance should therefore be planned prior to the divorce.
Most of the time it is the actual owner of the property who takes insurance for the property. In the case of a divorce, the terms will not change unless the property is owned jointly. If it is owned jointly then the end owner of the property is who will enjoy the benefits and this will be mainly determined by court. In some cases, a home or the property can be sold and the benefits shared among the spouses.
Most of the time what happens after a divorce depends on the kind of policy cover you have, there are some covers that have better terms than others. It is therefore important that you do your research well before settling for an insurance company. Luckily the internet has made this process way easy and you can find rankings of different insurance companies to help you choose a top rated insurer such as Alliance and Associates for your insurance cover at the best rates.