New Power Generation Inc .
NPG Financial Services Inc.
7726 Winegard Rd, Suite 17
Orlando, FL 32809
(407) 929-1684
npgfs1@gmail.com chrislopez@npglife.us

Insurance Read Time: 3 min

What You Should Do About Insurance Following a Divorce

Divorce can be an emotionally and financially challenging life event. In the face of the many possible adjustments divorce entails, making changes to insurance coverage may be overlooked.

Here's a look at each type of coverage:

Auto

If there is a change in auto ownership, you may need to obtain car insurance coverage to coincide with that change. You also may want to think about removing your former spouse from a policy to protect yourself against potential liability and ensure that his or her name does not appear on any claim check. Don't forget to notify the insurance company of any address change.

Home

A divorce may mean a new place of residence for one or both spouses. Consider purchasing renter's insurance if you are moving into a new apartment. If you are staying in your present home, you may want to remove your ex-spouse's name from the policy and consider changes to any property coverage if, for instance, your former spouse is taking jewelry or other items of value from the premises.

Life

Life insurance is often purchased to cover financial obligations that may occur when a spouse passes away. Life insurance policies may be an element of your divorce agreement. If possible, consider buying a policy on a former spouse's life if he or she is providing alimony or child support.1

If you do retain a pre-existing policy, be sure to review and amend the beneficiary so that it reflects your current wishes.

Disability

A disability may have an adverse impact on the ability of a former spouse to pay alimony or child support. As such, you may want to include the maintenance of such a policy in the divorce agreement.2

Health

If you or your children are covered under your former spouse's employer group plan, you may want to contact the employer to continue coverage under COBRA (Consolidated Omnibus Budget Reconciliation Act). If you have an individual policy, you may want to consider adding your children to the policy. You may not want to duplicate coverage for your children.

1. Several factors will affect the cost and availability of life insurance, including age, health, and the type and amount of insurance purchased. Life insurance policies have expenses, including mortality and other charges. If a policy is surrendered prematurely, the policyholder also may pay surrender charges and have income tax implications. You should consider determining whether you are insurable before implementing a strategy involving life insurance. Any guarantees associated with a policy are dependent on the ability of the issuing insurance company to continue making claim payments.
2. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Federal and state laws and regulations are subject to change, which may have an impact on after-tax investment returns. Please consult legal or tax professionals for specific information regarding your individual situation

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

Share |
 

Related Content

What Is the Dividend Yield?

What Is the Dividend Yield?

This calculator helps determine your pre-tax and after-tax dividend yield on a particular stock.

How the Federal Reserve Works

How the Federal Reserve Works

Each day, the Fed is behind the scenes supporting the economy and providing services to the U.S. financial system.

Dog Bites Neighbor. Now What?

Dog Bites Neighbor. Now What?

Even dogs have bad days. So, what happens when your dog bites a neighbor or passing pedestrian?

 

Have A Question About This Topic?







Thank you! Oops!

4 Things to Consider While You’re Planning When to Retire

As the decision to retire approaches, you’ll find the choice of when to retire is rarely black and white.

Assess Life Insurance Needs

How to help determine life insurance needs to provide for your family after you pass away.

Tax-Advantaged Health Care Planning for Retirement

Heading into retirement with confidence is easier if your planning includes steps to minimize taxes, especially as it relates to health care planning.

View all articles

Comparing Mortgage Terms

Estimate the total cost in today's dollars of various mortgage alternatives.

Taxable vs. Tax-Deferred Savings

Use this calculator to compare the future value of investments with different tax consequences.

Paying Off a Credit Card

Enter various payment options and determine how long it may take to pay off a credit card.

View all calculators

Your Cash Flow Statement

A presentation about managing money: using it, saving it, and even getting credit.

5 Smart Investing Strategies

There are some smart strategies that may help you pursue your investment objectives

Principles of Preserving Wealth

How federal estate taxes work, plus estate management documents and tactics.

View all presentations

Retirement Redefined

Around the country, attitudes about retirement are shifting.

Coaches

Coaches have helped you your whole life, in ways big and small. We’d like to be one of them.

Charitable Giving: Smart from the Heart

Do you have causes that you want to support with donations?

View all videos