“When discussing the financial aspects of a divorce or a break-up, insurance considerations should be a key component in ongoing and final decisions,” said Jeanne M. Salvatore, senior vice president and consumer spokesperson for the I.I.I. “Dividing up property, changing homes, and altering life insurance policies must be discussed to make sure that both parties, as well as children or other dependents, are financially protected after the separation is completed.”
The I.I.I. suggests couples review the following coverages if they plan to separate or divorce:
4. Disability Insurance
Many people underestimate the risk of disability. Yet, between the ages of 25 and 55, a person is more than twice as likely to become disabled through an accident or disease, as they are to die. If a former spouse becomes disabled and cannot work, it could threaten alimony and child support payments, so it is important to safeguard against this possibility by specifying that his or her income be covered by a private disability insurance plan.