Disability insurance is not something that a person gives much thought to until an event has already occurred that leaves them either with limited work options or completely unable to wok because of their disability. This becomes an even bigger issue if after a divorce you are responsible for making payments for alimony and child support.
Social securities benefits most likely will not give you the amount of coverage you will need to sustain a livable income plus make any additional payments for child support or alimony. Just to give you an idea, in 1997 the average benefit paid to a disabled worker was $708. This is why it is important to consider disability insurance.
In the event you become disabled and unable to work, disability insurance will provide monthly benefits. Those benefits can be either a percentage of your income or a preset dollar amount. When you are deciding a disability insurance make sure to look at your budget and how your spending needs may differ if you were to become disabled.
What Will I Need to Do for Homeowners/Renters Insurance?
In the process of divorce, you and your ex-spouse will split up your shared assets in some way, including your valuable household items such as antiques, jewelry, etc. To compensate for this change you may want to consider a new or modified homeowners insurance policy.
Homeowners and renters insurance covers for the value of your household items in the case of incidents like fire or theft. Make sure to talk to the insurance agent about what exactly the policy covers, for some policies may not provide full coverage for some valuable items like jewelry.
Do You Have a Car?
If you own a car whose insurance policy has both your name and the name of your spouse, make sure to get that policy changed when you get a divorce. To do this you will need to inform your car insurance agent, and if you are living at a different residence you may need to get a whole new policy. Also, make sure to state in your separation agreement who is responsible for paying car insurance premiums.
Should I Consult a Divorce Attorney about My Insurance Needs when Getting a Divorce?
Trying to sort out all of your assets and financial needs during the divorce process can be very complex. Make sure to consult a divorce attorney not only about the legal aspects of the separation, but what other steps you should take during the divorce process to make sure it goes as smoothly as possible.