Any type of major change in a person’s life can impact their finances. Regardless of if they decide to get married or to have a child, it will be necessary to update insurance coverage. Divorce, even more than other events, can have a huge impact on a couple’s bank account, as well as their financial health. While it may be hard to think about finances when dealing with this emotionally difficult situations, failing to do so can result in a number of financial issues. In most cases, Divorce Lawyers in University Place WA can provide advice and guidance regarding insurance changes that need to be made. However, knowing what they are can help a person feel more in control in these situations.
Life Insurance
While married, it is possible that no life insurance was purchased, or that if a policy was purchased, the beneficiary was the person’s ex. Life insurance is one of the first types of insurance that need to be dealt with after a divorce. In some cases, a person will be ordered to pay child support or alimony. One way the court has assurance this is done, even if the individual passes away is with their life insurance policy. This means even if a person did not previously have this type of coverage, they should purchase it and name their ex-spouse as the beneficiary. However, if the individual doesn’t have any type of support responsibilities, it may be wise to change the name of the beneficiary on the policy from their ex-spouse.
Disability Insurance
Approximately 25 percent of 20-year-olds today are going to become disabled prior to reaching the age of 67. This is quite a disturbing figure. This is why disability insurance may be more important than life insurance if a person has support obligations after their divorce is final. Most clients should discuss their need for this type of insurance coverage with Divorce Lawyers in University Place WA to see if it is something they should invest in.
While insurance coverage may be the last thing just divorced individuals think about, it plays an important role. Taking the time to purchase the right type of insurance coverage and setting it up in the proper way is important.
