Did you know that your life insurance policy could still cover your ex even if you two are divorced and no longer wish to be apart of each other's lives? Insurance policies have a lot of fine writing when it comes to this. You don't want to ignore your insurance decisions because it may end up making you pay more than you could ever imagine.
The laws are different for every state, so you will want to check out what it means for you and your ex, because you may find yourself in the middle of some expensive complications. If you have a good insurance agent, you may be able to protect yourself from this. You will want to make sure that you think carefully about your insurance options when it comes to your ex.
First, you need to think about your life insurance. When you have something that involves a lot of money, you will want to make sure you know exactly what it is that you are signing. When it comes to getting your spouse off your policy you will want to talk to agent right away. As soon as the papers are filed, you should see what you have to do to take them off the policy.
Some states will make the policy invalid as soon as the divorce goes through. You may also need to replace them and get a change in the policy. You can take your ex off and place your children or others as the beneficiary. Changing you beneficiary isn't hard and can be done within minutes. Think about who pays the premium. If your husband wants he can stop paying or cash in the policy and leave you with nothing if anything happens.
To protect the children, make sure that your divorce states that they keep the policy with the children as the beneficiary and make sure that they show proof of it each year. The only thing is that if a policy lapses, they don't have to reinstate it.
If you would like to name your children as the beneficiary, you will want to open a trust fund and then name the beneficiary as the trust. This way your ex will never see the money. They are not allowed to give the money to the ex, but must place it into a trust fund that the children can collect at 21 or 18, whatever the agreement happens to be. Make sure that you have all your bases covered so that your ex doesn't get any of the money
Think about the medical insurance. In some states you can stay on the policy for 36 months after the divorce is final. You child can be covered until they are adults when it comes to most policies. The key is to make sure that you know your HMO limits. If you move, your ex may not be covered or for emergencies only.
Homeowners may be in for some surprises. The things that are covered may only be those of the named insured. Therefore, if your husband has the insurance in his name, then your stuff will not be paid for if a fire or other damage happens. When you move you should make sure that you take everything that is in your name. You will want to take anything that you would miss if it were unable to be recovered.
Your auto insurance is another thing that you will want to think about checking so that you know if you are covered under your ex's policy or not.