A Guide to Updating Your Insurance Policies After Divorce

As you navigate this new chapter of getting divorced, you'll likely need to reassess and adjust many practical aspects of your life. One of the most important (but often overlooked) parts of this transition is reviewing your insurance. Whether it’s health, life, auto, or home insurance, making sure everything is up to date can give you peace of mind and help you feel more confident moving forward. Let’s walk through what you need to know.

Health Insurance

Health insurance is one of the most important areas to address after divorce. If you were covered under your former spouse’s health insurance plan, you’ll need to figure out how you'll stay covered moving forward. Here are a few options:

• COBRA Coverage: The Consolidated Omnibus Budget Reconciliation Act (COBRA) allows you to continue coverage under your ex-spouse’s employer-sponsored plan for up to 36 months. While this can be a convenient short-term solution, it’s often expensive — so you may want to evaluate other options.

• Marketplace Plans: The Health Insurance Marketplace offers different plans to meet your needs. A divorce is considered a qualifying life event, which means you can enroll outside the regular open enrollment period.

• Employer-Sponsored Insurance: If you’re employed and your job offers health insurance, now is a great time to enroll or adjust your plan to suit your needs.

Remember to update your beneficiaries and make sure your children have continuous coverage, if applicable.

Life Insurance

Reviewing and updating your life insurance ensures your loved ones are protected, no matter what life brings. Here’s what you need to consider:

• Update Beneficiaries: If your ex-spouse is listed as your beneficiary, you may want to make changes to reflect your current priorities. Consider naming a child or a trusted family member.

• Evaluate Your Coverage: If you’re now the sole provider for your children, you might need to increase your coverage to secure their future.

• Policy Ownership: If you and your ex-spouse shared a policy, clarify who will retain ownership. In some cases, you may need to purchase a new individual policy.

Car Insurance

If you previously shared a car insurance policy, here's what you need to know about getting your own coverage:

• Separate Policies: Contact your insurer to learn about your options and obtain a quote for individual coverage.

• Vehicle Ownership: Double check that the vehicle(s) you drive are titled in your name and listed on your new policy.

• Discounts and Savings: Ask your insurer about discounts you may qualify for, like safe driver discounts, bundling options, or loyalty programs.

Taking these steps not only ensures you’re covered but can also help you secure the best rates and coverage for your needs.

Home or Renters Insurance

Your living situation may also change after a divorce, whether you remain in the marital home, move to a new home, or transition to renting. Here’s how to address your home or renters' insurance:

• Update the Policy Holder: If you’re keeping the marital home, make sure the homeowners' insurance policy is in your name. If your ex-spouse is moving out, they should remove themselves from the policy.

• Adjust Coverage: If you’re downsizing or selling the home, update your coverage to reflect the value of your new living arrangement. If you decide to rent, you'll need renters' insurance to protect your personal belongings and provide liability coverage.

• Consider Bundling: If you’re purchasing car and home insurance separately, bundling them with the same provider might save you in the long run.

Taking the time to update your insurance—health, life, auto, and home—can help you feel more in control and ready for what’s next. Keep documentation handy to simplify the process, make it a habit to regularly review your insurance information, and talk with an insurance agent or financial advisor if you need advice along the way. While this process can be time-consuming, it's not just about managing risks—it’s about empowering yourself to move forward with confidence and optimism. To learn more about insurance options to meet your needs and budget including life, auto, home, and more, visit FAIRWINDS Insurance Services, LLC.