top of page
Writer's pictureJosephti Cruz

Insurance Needs After Divorce

Updated: Oct 14

Navigating the complex landscape of insurance and financial protection after a divorce can be overwhelming. In the episode titled “Insurance Needs After Divorce,” my co-host, Jade Eagles, and I share essential tips and real-life stories to help you manage these critical changes effectively. We emphasize the importance of updating your insurance policies post-divorce to ensure your assets are directed as you intend.





One key point we discuss is the significant impact that outdated beneficiary designations can have on your financial stability. We share real-life stories of individuals who unexpectedly received life insurance settlements from ex-spouses due to neglected beneficiary updates. This oversight can lead to unintended financial windfalls for ex-spouses and emotional turmoil for beneficiaries. That’s why it’s crucial to revisit and revise your insurance policies to reflect your current wishes and ensure your assets go to the right people.


We also highlight the alarming challenges women face with health insurance after divorce. According to the National Library of Medicine, roughly 115,000 American women lose their private health insurance in the months following a divorce, with about 65,000 becoming uninsured. This loss can lead to long-term uninsured or underinsured statuses, exacerbating existing health conditions and financial stress. We stress the importance of conducting a thorough audit of all current insurance policies—including health, dental, and auto insurance—to ensure continued coverage post-divorce. We provide practical advice on comparing insurance plans to find the best options available, helping you maintain your health and financial stability during this significant life transition.


Another critical aspect we cover is the broader insurance considerations that come into play during life changes like selling a home or finalizing a divorce. We discuss the benefits of unbundling home and car insurance policies and the necessity of renter's insurance, even if not mandated by a landlord. Updating beneficiaries for life insurance policies is essential, and we suggest setting up trusts to ensure minors receive their inheritance responsibly. We also explore the need for disability and long-term care insurance, particularly when your marital status changes, and the options for uncoupling joint insurance policies.



A divorce financial planner assisting their client with insurance needs


Understanding the importance of updating your insurance needs after divorce is paramount. Keeping your insurance policies current can prevent unintended consequences, such as an ex-spouse benefiting from a life insurance policy meant for your children or new partner. Regularly reviewing and updating your insurance policies ensures they align with your current life circumstances and protect your intended beneficiaries.


This episode of "Cover Your Assets" offers invaluable tips and strategies to help you navigate the complex world of insurance and financial protection after divorce. By updating your insurance policies, conducting thorough audits, and seeking professional advice, you can take control of your financial future and ensure you're fully protected during this challenging time. Whether you're dealing with outdated beneficiary designations, health insurance challenges, or the need for various types of coverage, the tips and stories shared in this episode will guide you toward making informed decisions and securing your financial stability.


 

Cover Your Assets - a divorce & money podcast

Connect With Us! 

Jade Eagles on LinkedIn

Josephti Cruz on LinkedIn 


Divorce might be the end of one chapter, but it’s also a brand-new journey filled with hope and growth. Join us for practical tips for financial empowerment and insights to make this time a little less daunting.




3 views0 comments

Comments


bottom of page