Sunday, April 23, 2017
Road of Life Events
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DETOUR: Getting A Divorce
Statistically, about 50% of all marriages in the United States end in divorce. If
you are going through a divorce, you need to make sure you don't forget about your
insurance portfolio. Much of the insurance you have is probably interdependent upon
You probably have one auto insurance policy that covers both you and your spouse.
You will need to contact your insurance carrier to have them issue separate individual
policies for both you and your soon to be ex-spouse. Also, make sure to mention
to the carrier any change in name, address and automobile.
If you or your soon to be ex-spouse are covered under the same health insurance
plan then you will need to obtain separate coverage. Most health insurance companies
will not permit an ex-spouse to remain on a family insurance plan. First check to
see if coverage is available through either spouses employer; this may be the most
cost effective way of obtaining an individual health insurance policy. If not you
will need to find coverage on your own. To start with, you need to understand the
3 basic types of individual health insurance.
This type of plan lets you visit the healthcare provider of your choice, and it
reimburses you for a portion of the expenses. The portion of the medical expenses
you are responsible for is called co-insurance which is usually twenty-percent of
the charges that are considered reasonable and customary (reasonable and customary
charges are the prevailing fees charged by healthcare providers in a particular
region of the country). Many fee-for-service plans also have a deductible that must
first be met before medical expenses are eligible for reimbursement. In addition,
most plans also have "maximum-out-of-pocket expenses" or "stop-loss"
provisions that limit the amount of co-insurance a patient is responsible for. After
co-insurance payments reach a policy's stop-loss provision, the insurance company
pays for the remainder of the annual expenses at one hundred percent of reasonable
and customary charges. Fee-for-service plans, like all other types of health insurance,
have lifetime limits which place a cap on the total amount of medical expenses an
insurance company will pay for. You should look for a policy with unlimited lifetime
benefits or at least $1,000,000 in coverage.
Health Maintenance Organizations (HMOs):
HMOs are managed care health plans that restrict you to a designated network of
healthcare providers. Under an HMO, you must select a primary care physician in
the network. If you become ill or injured (non emergency) then you must first visit
your primary care physician before being referred to a specialist. HMO's usually
pay for all of your medical expenses except for a small co-payment which is your
responsibility for each visit to your healthcare provider. HMOs will not reimburse
you for any medical expenses if you obtain care outside of the HMO network unless
you HMO plan has a POS (Point of Service) option. POS gives you the flexibility
of going outside the HMO network for medical treatment; however, the insurance company
will only reimburse you for a portion of the expenses subject to co-insurance. HMOs
are the most restrictive type of health plans available but are also among the least
expensive types of health insurance.
Preferred Provider Organizations (PPOs):
PPOs are a type of managed care plan that gives you financial incentive to use specified
or preferred healthcare providers. If you visit a preferred healthcare provider
the insurance company will usually pay for all of the medical expenses after you
pay a small co-payment which is usually $10-$20. PPOs also give you the flexibility
of using doctors or hospitals out of the PPO network; however, you will be responsible
for co-insurance payments similar to those in fee-for-service health insurance plans.
PPOs differ from HMOs in that you have the freedom to choose any healthcare provider
Whether or not
you and your soon to be ex-spouse own life insurance it is very important to review
your needs and make any appropriate changes. If one spouse is required to make alimony
or child support payments then it is important to make sure that this spouse's life
is insured so that alimony and child support payments could continue in the event
of their death. If you need help determining the amount of life insurance needed
then use the ReliaQuote Needs Calculator.
Other factors to take into consideration are changing beneficiaries on existing
life insurance policies and ensuring that the coverage amounts are correct.
Who gets the house?
This may be the biggest issue in a divorce since it is probably your most valuable
asset. Regardless of who gets the house, changes should be made to your homeowners
policy. First, the policy will need to be placed in the name of the spouse who gets
the house. In addition, a review should be done to make sure that personal property
coverage limits are adjusted. Most likely the coverage amounts will need to be reduced
since many of the asset will be split between both you and your spouse.
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Starting a New Job
Buying a Home
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Becoming a Parent
Loss of a Loved One
Child Leaves Home