Divorce presents auto, life insurance implications

Facing a divorce is not an easy prospect for the parties involved, especially since it touches on a wide swath of legal and financial issues.

According to the Insurance Information Institute, lives can be affected in a number of ways through a divorce. That includes insurance coverage, according to Loretta Worters, the organization's vice president.

"Divorce can also have a serious impact on a couple's credit standing, both in terms of dividing joint debt that exists at the time of the divorce as well as the expenses that come with starting a new life," Worters said.

Regarding auto insurance, the III said divorcing couples will need to figure out how vehicles will be distributed. Insurance coverage will inevitably change once this is taken care of, and the institute suggests people get a policy before their old one expires.

Life insurance will also be affected, especially if the divorcing spouses have listed each other as beneficiaries. However, some may still choose to keep the policies as they are, especially if children are involved.

There are other life changes that may necessitate a review of auto, life or home insurance coverage. Those include buying a house, getting married, having children or retiring.

Posted in: Auto Insurance, Life Insurance

Auto Insurance News: This article was published on 10-22-2010 at 3:59 pm.

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