Handling insurance policies in the event of a divorce
During a divorce, it is important for the couple to properly handle insurance policies to make a clean break.
A Bartlett divorce is often filled with splitting up property and figuring out who gets custody of the kids. For most couples, insurance is the last thing on their mind during this life altering time. However, removing each other from policies may help complete the separation and give all parties involved peace of mind. If couples forget to handle their insurance policies, it could lead to being under or over insured once the divorce is finalized.
It is important that each spouse gets his or her own health insurance, according to Reuters. Because of the expense associated with health insurance, people may feel a separate policy is out of reach. Some people can turn to Medicaid to help obtain health insurance. Others may be able to get temporary coverage under the other spouse’s plan – known as COBRA. No matter how it is done, it is important a divorced couple no longer be on the same insurance plan because that may constitute insurance fraud if the insurance provider is not notified.
This type of insurance policy is another one that divorced people should consider adding to their arsenal, Fox Business says. Typically, a policy of this nature will pay a percentage of a person’s income, which would help pay bills and get food. Not everyone has a disability insurance policy because some married couples feel they will be able to rely on each other in the case of a debilitating accident. However, a newly single person should remember that without a second income, a disability may be financially hard to handle.
There may be a few steps to take in regards to a life insurance plan. First, each spouse should consider his or her coverage. A divorce changes the dynamic of many people’s lives. After a divorce, it may be necessary for spouses to get a new life insurance policy to cover the alimony or child support they depend on. For spouses receiving money, it is advised that they make sure that the ownership of the policy is transferred to them.
Second, spouses should look over the beneficiaries on their policies. It is important for people to change their beneficiary to a child, sibling, new spouse or parent rather than their ex-spouse. This helps ensure that the assets go to the appropriate parties when the person dies.
A divorced person in Tennessee may have to change and add a few insurance policies to assure he or she is fully covered. A knowledgeable attorney may be able to help divide insurance policies and other assets during a divorce.