Insurance Changes After Divorce: A Guide to Protecting Your New Future

Life is full of changes, and if you are experiencing a divorce, chances are you have a lot of details to work out. While we know there is a LOT to consider while going through a marital separation, it’s important to keep an eye on your insurance policies, too. 

Let’s break down some of the crucial items you need to keep in mind as you navigate insurance changes after divorce.

Whether you were the spouse juggling the finances, arranging policies, and keeping track of the details or not, it is time to take responsibility for your own needs. You will need to sort out the policies you do have, possibly seek new additions, and even tweak the details of others. The first step is to simply get organized.

Now that you are on your own, in terms of marriage and financial responsibilities, you will need to get your files in order. Do you have a copy of your current policies or those you had as a married couple? Do you know your agency or agents? Now is the time to find out. 

Once you have your documents in order, and have gained a clear picture of what policies you had carried while married, it is now time to assess what needs to change. Each individual person will, of course, have unique needs to fit his or her personal circumstances.

However, some common themes to review would include analyzing your changes.

For example, did you retain the marital home? Or did you find a temporary apartment and move from your previous house? Either way, change is necessary for your homeowner’s insurance . If you are the sole owner of the home, you will need to update the policy to reflect that it is your home, alone. Likewise, if you have moved into another home, you may need a new policy (or renter’s insurance).

If you have separated your vehicles, much like the home, you will need to update your personal car insurance policy . Chances are, you may have had one another covered as drivers on each other’s cars, which would no longer be required. If you have shared children, especially of driving age, you will also need to discuss who will continue to cover any drivers in the household. 

Next, your life insurance may also need to be updated. Depending on your beneficiaries (for example, if you had your former spouse as the sole one), you will likely want to update your terms. You may also want to be sure young children have protection as necessary, such as a trust fund complete with selected trustees and instructions. 

Finally, your health insurance may need to be updated, especially if you were on your spouse’s work-offered policy. Affordable healthcare allows for life changes, including divorce, to be entered into its system, allowing persons to add a policy even when it is not a typical Open Enrollment period. Health insurance may also need to be worked out as part of your custody agreement, if you have minor children. 

Many women who changed their names during marriage may revert to their maiden names. After you’ve obtained the proper documentation to do so (often changing it with the courthouse, adjusting your driver’s license, social security card, etc.), you can easily adjust your insurance policies, too.

Inform your agent about your name change. Be sure they are able to update each file. This is an ideal time to have your insurance policies umbrellaed under a single agency (more on that later), as it means only making one phone call to do so! 

Policy coverage doesn’t have to change when updating your name. If needed, you can do the name change alongside other updates, but it isn’t necessary to change coverage if it’s not necessary. 

When you have a local agency you’ve worked with over time, chances are you are happy with their care. You’ll find that, in a time like divorce, it is ideal to continue on with the same person. Not only are they a trusted and proven stability for you, but they are also likely quite familiar with your insurance policies already.

A known agent will have the insight and ability to review your personal need for change. They may recall or review policies you’d forgotten about or never perhaps knew you had. Thankfully, an agent does not have a “side” in the divorce, and is simply interested in supporting you and your insurance needs. They can be a stable resource at this time, especially if you have already (or should do so now!) have your policies under the same umbrella. 

Not only does such bundling save you money, but it makes times like this a tad simpler since you only have one contact to call who can make changes to all policies for you. You certainly don’t need the extra hassle of repeating your needs, basic information, and situation to multiple companies and strange agents you aren’t familiar with, especially at this time! 

We’re here to help, at Rehm Insurance, and will help you work out the insurance details during this tumultuous time, as you navigate insurance changes after divorce.