Avoid Divorcing Yourself from Proper Insurance Coverage

While it may not rise to the top of your concerns during a divorce, your insurance needs certainly require review should you be going through a divorce.

Even though numbers vary, numerous sources report close to half of all marriages in the U.S. will likely culminate in divorce.

According to the Insurance Information Institute (I.I.I.), couples have to deal with challenging task of separating not only emotionally but financially, and that includes insurance. A divorce can also provide a major hit to a couple's credit standing, both in terms of separating joint debt that exists when the divorce goes down as well as the costs that come with beginning a new chapter.

The I.I.I. recommends couples check out the following coverages in the event they are separating or planning a divorce:

(Auto Insurance) - A separated or divorcing couple will have to determine who receives which car. Should there be a switch in ownership of the car it will also require a change in who holds the insurance policy. In the event you or your spouse switches your address, you should obtain a separate auto policy right away. If either of you has to purchase a new car, you should plan for a new auto policy prior to the car being registered. Removing a former spouse from the insurance policy also protects you from the chance of liability if the other individual is involved in a crash and gets sued.

(Home and Renter's Insurance) - The individual who remains in the marital home following the divorce should make sure the homeowners' plan is in their name. Meantime, the person leaving should make sure they acquire a new homeowners' or renter's policy for their new residence. If you are the one remaining in the home, be sure to review the present policy coverages to decide if they remain appropriate. Check to see if you have actual cash value or replacement cost coverage for both the structure and the contents of the residence. If your belongings are destroyed or stolen through an insured disaster, an actual cash value policy pays to replace them including a subtraction for depreciation, while replacement cost pays the entire amount that it would take to replace the item today.

(Life Insurance) - Married couples purchase life insurance for a number of reasons, including covering current and anticipated debts and financial obligations, along with providing an income and/or inheritance for their dependents should there be a death of one or both of the spouses. Married couples often list each other as the main beneficiary on life insurance policies, and should think carefully prior to making any changes. There may be good reasons to keep life insurance coverage on a former spouse. Some divorced couples might also think of keeping (or acquiring) life insurance on the spouse who has the primary role for raising the children. If he or she dies, expensive childcare will need to be arranged and financed. In such instances, the divorce decree should include the means to pay the premiums on this life insurance policy.

(Disability Insurance) - Between the ages of25 and 55, an individual is more than two times as likely to become disabled through an accident or disease, as they are to die. In the event a former spouse becomes disabled and is unable to work, it could threaten alimony along with child support payments, so it's important to protect against this chance. The best way to do this is to be sure his or her income is covered in an individual disability insurance policy. There are three different forms of long-term disability coverage plans available through the workplace. The options are plans available through professional groups and unions; and private disability insurance. Even though the last choice is costlier, it provides the best benefits.

Whatever options best suit you, be sure to shop around for multiple quotes when looking for the right insurance.

While it may not rise to the top of your concerns during a divorce, your insurance needs certainly require review should you be going through a divorce.

Even though numbers vary, numerous sources report close to half of all marriages in the U.S. will likely culminate in divorce.

According to the Insurance Information Institute (I.I.I.), couples have to deal with challenging task of separating not only emotionally but financially, and that includes insurance. A divorce can also provide a major hit to a couple's credit standing, both in terms of separating joint debt that exists when the divorce goes down as well as the costs that come with beginning a new chapter.

The I.I.I. recommends couples check out the following coverages in the event they are separating or planning a divorce:

Auto Insurance) - A separated or divorcing couple will have to determine who receives which car. Should there be a switch in ownership of the car it will also require a change in who holds the insurance policy. In the event you or your spouse switches your address, you should obtain a separate auto policy right away. If either of you has to purchase a new car, you should plan for a new auto policy prior to the car being registered. Removing a former spouse from the insurance policy also protects you from the chance of liability if the other individual is involved in a crash and gets sued.

(Home and Renter's Insurance) - The individual who remains in the marital home following the divorce should make sure the homeowners' plan is in their name. Meantime, the person leaving should make sure they acquire a new homeowners' or renter's policy for their new residence. If you are the one remaining in the home, be sure to review the present policy coverages to decide if they remain appropriate. Check to see if you have actual cash value or replacement cost coverage for both the structure and the contents of the residence. If your belongings are destroyed or stolen through an insured disaster, an actual cash value policy pays to replace them including a subtraction for depreciation, while replacement cost pays the entire amount that it would take to replace the item today.

(Life Insurance) - Married couples purchase life insurance for a number of reasons, including covering current and anticipated debts and financial obligations, along with providing an income and/or inheritance for their dependents should there be a death of one or both of the spouses. Married couples often list each other as the main beneficiary on life insurance policies, and should think carefully prior to making any changes. There may be good reasons to keep life insurance coverage on a former spouse. Some divorced couples might also think of keeping (or acquiring) life insurance on the spouse who has the primary role for raising the children. If he or she dies, expensive childcare will need to be arranged and financed. In such instances, the divorce decree should include the means to pay the premiums on this life insurance policy.

(Disability Insurance) - Between the ages of25 and 55, an individual is more than two times as likely to become disabled through an accident or disease, as they are to die. In the event a former spouse becomes disabled and is unable to work, it could threaten alimony along with child support payments, so it's important to protect against this chance. The best way to do this is to be sure his or her income is covered in an individual disability insurance policy. There are three different forms of long-term disability coverage plans available through the workplace. The options are plans available through professional groups and unions; and private disability insurance. Even though the last choice is costlier, it provides the best benefits.

Whatever options best suit you, be sure to shop around for multiple quotes when looking for the right insurance.