Having various types of insurance policies has become part of the American way of life. Often, we take on more types of insurance as we grow into adulthood, and as our responsibilities increase. When a divorce and subsequent property division takes place, the landscape of those insurance needs often shifts. The end of a Florida marriage is a perfect time to reevaluate one's current level of coverage and to determine what changes are appropriate.
Consider, for example, the need for homeowner's insurance. If only one party will retain the family home, that party should also assume responsibility for insuring the property. On the other hand, if a party is moving out of the home and will be renting for a period of time, it may be worthwhile to think about renter's insurance to protect belongings that will be stored inside the new home.
Life insurance is another area that should be reviewed during and after a divorce. Most spouses have very little interest in providing a windfall to their former spouse when they pass away. However, if changes are not made to life insurance beneficiary designations, that is exactly what could take place. On the other hand, a spouse who is tasked with making child support payments might also need to purchase life insurance as part of that support.
In many cases, there are savings to be had by making a comprehensive assessment of one's insurance needs following a divorce and property division. Some Florida residents will find that such a review is long overdue, and that there are better and more affordable coverage options available. This is one area of divorce where the financial outcome might be positive, rather than negative.
Source: Forbes, "5 Crucial Insurance Changes After Divorce", Barbara Marquand, May 25, 2016