In an ideal world, your soon-to-be ex will assist you in paying your health insurance premiums after divorce, ensuring that you remain covered. If that isn’t part of the settlement, you’re out of luck because the company will drop you from his or her health insurance plan as soon as the divorce is finalized. So what do you need to know about health insurance and divorce? Here is your complete guide to health insurance and divorce.
So it’s best to research your health insurance options after divorce and take control of your healthcare coverage as soon as possible. Here are a few options for health insurance after divorce:
If you are on your spouse’s health insurance plan, you may be left without health insurance after divorce. However, just like any other employee who loses coverage, you will be eligible for COBRA health insurance coverage for up to 18 or 36 months (depending on the circumstances). To be eligible for COBRA, your ex must work for a company with 20 or more employees. However, most states offer “mini-COBRA” (state continuation) benefits to those who work for a small business with fewer than 20 employees.
If your current health insurance policy is terminated, you must apply for COBRA coverage within 60 days of the event to retain coverage under the same plan you previously had, but separately from your ex-spouse. You must pay the full cost of the health insurance policy and will not receive any premium contributions from your ex’s employer, as you most likely did in the past. It’s appealing if you’ve already incurred significant medical expenses this year, because you won’t have to start over with a new plan and out-of-pocket policies. However, this can be the most expensive healthcare plan option, which is why it’s important to price shop health insurance before going this route without first researching other insurance options after divorce.
HEALTH INSURANCE PLAN FOR EMPLOYEES
If you are eligible for health insurance through your own employer after divorce, speak with your human resources department about your options. This is less expensive than COBRA and keeps you out of your ex’s company plan. Although you must usually wait until certain times of the year to join your employer’s health insurance plan, losing your previous coverage due to a divorce triggers a special enrollment period for you to sign up for your employer’s plan.
ACA/OBAMACARE HEALTH CARE PLAN
Even if you have employer-provided health insurance, you may be eligible for Obamacare health insurance after divorce through the state exchange (which is run by your state or the federal government) or outside of the exchange. However, if you have employer coverage, you are unlikely to receive a subsidy to offset the cost of an individual market plan.
You have 60 days after your divorce to obtain coverage during a Special Enrollment Period. After the 60-day period expires, you must wait until the next regular open enrollment period to sign up for a health insurance plan. The regular enrollment period usually takes place at the end of the year.
Shopping for health insurance after a divorce on your own for the first time can be overwhelming, but if you keep these five things in mind when researching your health insurance options, you will be able to make a more informed decision.
- Metal level – Obamacare health insurance plans are classified according to their metal level: bronze, silver, gold, or platinum. When shopping for health insurance after divorce, the levels determine only how you and your plan split the costs of care. Bronze plans are the most affordable, with a low premium, high deductible, and/or a smaller doctor network, but most routine care is out of pocket. As the plans progress, the benefits, including routine care, become more extensive, the deductibles decrease, and the monthly cost of the plans increases. A platinum plan covers roughly 90% of average medical costs, while a bronze plan covers 60% of average medical costs. Whatever level you select, you may be eligible for an income-based premium tax credit, which reduces your premium.
- Network – If you are committed to your doctor or a specific facility where you prefer to receive care, ensure that they are part of the health insurance company network of the plan you are most interested in. The health insurance company’s customer service number can tell you if your doctor is in their provider network. It’s often important to be able to see the same doctors you’re used to when getting health insurance after a divorce.
- Deductible – A deductible is the amount of money you must pay before your health insurance company will begin paying for your medical care. Examine the policy’s deductible to ensure you have enough savings to cover any gaps in coverage if unexpected medical bills arise. If not, you can buy supplemental health insurance, which pays cash for accidents and illnesses to help you cover your deductible.
- Price – While your monthly budget should not be the only deciding factor, you must ensure that you can afford the monthly payments or your health insurance plan will be cancelled. Money can be tight, but having health insurance after a divorce should be a top priority.
- Penalty – In some states, skipping out on purchasing health insurance after divorce will result in a fine. If health insurance is required by law, not having it will cost you at tax time. When you pay your income taxes, you will owe the government a flat fee or a percentage of your income, whichever is greater. In most states, this nationwide requirement expired in 2019.
The vast majority of Americans are eligible for some form of premium tax credit, which is a financial subsidy that helps lower the cost of their health insurance plan. Before you start shopping for health insurance, figure out what your Obamacare tax credit might be before deciding which plan to buy.
QUICK HEALTH INSURANCE
Short-term health insurance is an affordable alternative option if an Obamacare plan does not fit your budget or you believe you will obtain health insurance after a divorce from an employer in the near future. There are a few things you should know about these short-term health insurance plans:
- Certain pre-existing conditions are not permitted, and most of these plans have blanket exclusions for all pre-existing conditions. If you have a pre-existing condition, an Obamacare or employer-sponsored plan is your best bet.
- Coverage can begin as soon as the day you apply.
- Temporary insurance is typically valid for six to twelve months, depending on your state of residence. Some states, however, limit them to three months, while others prohibit them entirely.
Divorce is a life-changing event, but once you know your options, finding health insurance after divorce shouldn’t be too difficult. Make certain that your wellness is safeguarded so that the next chapter of your life is healthy and happy.
DIVORCE LEGAL SITUATIONS THAT MAY AFFECT YOUR HEALTH INSURANCE
What if you’re divorced but separated? If you are not living together, you can remain on your spouse’s insurance. There is no rule prohibiting this. Remember that your spouse may receive your medical records in the mail.
Generally, one spouse cannot remove their partner from their shared health insurance plan until the divorce is finalized. However, once the plan expires, the primary spouse on your health insurance plan may be able to obtain health insurance on their own.
If you and your spouse go through a legal separation (also known as a “limited divorce”), the laws will vary depending on your state and insurance company. Your plan may or may not consider this to be the same as a divorce. For more information, contact your insurance company or an attorney.
Health Insurance After Divorce: Health insurance after divorce can absolutely be discussed in a divorce settlement. As part of the settlement, your spouse may pay your and your children’s premiums through COBRA, their employer’s plan, or an individual market plan.
If You Divorce But Keep Your Health Insurance: If you do not lose your health insurance when you divorce, perhaps because you were the primary insured, you may not have guaranteed rights to a new ACA plan. However, you may be eligible for a new plan simply because someone else left your current plan or because your household income has changed.
Smart Ways to Save Money on Car Insurance
On average, car insurance costs $179 per month. But that doesn’t mean you’ll have to pay this price. So what do you need to know about “save money on car insurance”? How much do you need to save money on car insurance? Here is your complete guide to save money on car insurance.
Companies base your rate on a variety of factors, including the type of vehicle you drive and the length of time you’ve been insured. You can get good coverage without breaking the bank if you understand what factors influence your auto insurance costs.
Although auto insurers use similar factors to calculate your car insurance costs, such as age, driving history, and location, they weight these factors differently. That is why it is critical to compare rates.
To assess the value of shopping around, insuranceelife compared rates for 35-year-old drivers purchasing full coverage insurance from the nation’s largest insurers. We discovered that annual costs vary by hundreds of dollars. Liberty Mutual, despite being one of the largest insurers in the country, is not included in our analysis because it does not provide rate data.
In fact, switching from the most expensive to the least expensive insurer can save good drivers with good credit more than $207 per month on average. Savings can be even greater for drivers with a recent at-fault accident or poor credit — nearly $214 and $153 per month, on average.
However, these figures are for the entire country. Your rate will be determined by your location. For example, a company that has the lowest rates in one state may not have the lowest rates in another. And the cheapest company for a good driver with good credit may not be the cheapest for someone with a DUI or a recent accident, for example.
Benefit from car insurance discounts.
Every insurance company has a unique way for you to save money on your car insurance premium. Check out your insurer’s discounts page and ask your agent to go over your potential savings to ensure you’re getting all of the discounts you’re entitled to.
Our car insurance discounts page has more information on which insurers offer which discounts. However, keep in mind that you should compare quotes based on your specific situation. Simply because an insurer offers multiple discounts does not imply that it has the best overall price.
Accidents, speeding tickets, and other traffic violations raise car insurance rates. If you get a ticket, you may be given the option of attending traffic school to have it dismissed or to reduce the number of violation points on your driving record. According to our analysis, if you can keep the violation off your driving record, the time spent in class could save you up to $546 per year on average on your car insurance.
Get rid of any unnecessary auto insurance
If your car is a clunker, it may be time to cancel collision and comprehensive insurance, which cover vehicle damage. Collision insurance pays to repair damage to your car if it collides with another vehicle or object, or if it flips over. Comprehensive insurance covers you if your car is stolen or damaged due to a storm, vandalism, or hitting an animal such as a deer.
If your car is worth less than your deductible plus the cost of annual insurance, it’s time to sell it. Collision and comprehensive insurance will never pay out more than the value of the vehicle.
Consider whether it’s worthwhile to pay for coverage that may only reimburse you a small amount, if at all.
Drive a low-cost-of-insurance vehicle
Compare car insurance rates for the models you’re thinking about buying before you buy. The vehicle you drive influences your car insurance premium, especially if you purchase collision and comprehensive coverage. Small SUVs, for example, are less expensive to insure than flashy and expensive cars.
Increase the deductible
Raising the deductible, or the amount that the insurance company does not cover when paying for repairs, can help you save money on collision and comprehensive insurance. For example, if you have a $500 deductible and your repair bill is $2,000, the insurer will pay $1,500 once you’ve paid the $500.
Savings vary by company, so compare quotes with different deductible levels before making a decision.
Improve your credit rating
When car insurance companies determine how much to charge you, your credit score can play a significant role. In some cases, it can be more important than your driving record. However, this is not the case in California, Hawaii, Massachusetts, and Michigan, where insurers are not permitted to consider credit when setting rates.
- Focus on these three steps to improve your credit:
- You need to make on-time payments on all of your loans and credit cards too.
- You need to keep your credit card balances well below your credit limits.
Open new credit accounts only when absolutely necessary. Applying for too many credit cards can harm your credit score.
Don’t drive much? Take into account usage-based insurance.
Consider usage-based or pay-per-mile insurance to reduce car insurance costs if you don’t mind having your driving behavior tracked. To take part, you download an app or install a small device in your car that sends data to the insurance company.
In certain states, Metromile, Allstate, Nationwide, and Mile Auto all provide pay-per-mile insurance. You typically pay a base rate plus a per-mile rate for this coverage. If you don’t drive long distances or commute on a daily basis, it could be a viable option.
Other insurers, such as State Farm, Progressive, Safeco, and Travelers, provide usage-based insurance programs that monitor behaviors such as speeding and hard braking. They provide discounts or reduced rates in exchange for safe driving.
Life Insurance 30-Year Term: What Is It?
Life insurance is a contract between an individual and an insurance company, in which the individual will pay a premium in exchange for a death benefit to be paid to a designated beneficiary upon their death. A 30-year term life insurance policy is a type of life insurance that provides coverage for a specific period of 30 years. If the insured individual dies during that time, the death benefit will be paid to the designated beneficiary. So what is life insurance 30 year term? What do you need to know about life insurance 30 year term? Here is your ultimate guide to life insurance 30 year term.
One of the main advantages of a 30-year term life insurance policy is that it provides long-term coverage at an affordable price. Because the policy is for a set period of time, the premium will be lower than that of a permanent life insurance policy, such as whole life insurance. Additionally, the death benefit is guaranteed and will not decrease over time.
Advantages and disadvantages of Life Insurance 30 Year Term:
Another advantage of a 30-year term life insurance policy is that it can be used to provide financial security for a specific period of time, such as the length of a mortgage or the time until a child is financially independent. Additionally, it can be used to provide coverage for an individual’s working years, ensuring that a family will have financial support if the primary breadwinner dies.
The main disadvantage of a 30-year term life insurance policy is that it does not provide lifelong coverage. Once the policy term expires, the coverage will end and the insured individual will need to either renew the policy at a higher premium, or purchase a new policy. Additionally, the death benefit does not accumulate cash value, so it cannot be used as a savings or investment vehicle.
What happens when the 30 years are up?
Term life policies, by definition, are only intended to provide your beneficiaries with a valuable lump-sum payment if you die during that time period. So, for example, it’s a way to protect a family until the children are grown and on their own. However, unlike permanent life insurance, term policies do not have a cash value. 3 So, when your coverage expires, your life insurance protection is gone – and even if you’ve been paying premiums for 30 years, there’s no residual value. If you want to keep your coverage, you must apply for new life insurance. The only problem is that the cost will be much higher: when it comes time to renew, you’ll be 30 years older, with 30 years less life expectancy.
Many life insurance companies offer “convertible” term policies. Convertibility allows you to change your coverage to permanent whole life without having to undergo a new medical exam, which would likely increase your premium. Guardian allows you to convert a life insurance contract at any time during the first five years, and offers an optional Extended Conversion Rider that allows you to do so for the duration of the insurance-term.
Why should I convert? If you are not a diligent saver, you may be drawn to the wealth-building aspect of whole life insurance. If you’ve had a serious health problem, such as a heart attack, it may be difficult to obtain other coverage. Or maybe you just want lifelong insurance protection. 30-year coverage may appear to be the best option right now, but things can change.
Other types of life insurance to consider:
20-year term life
If you’re not sure if you need coverage for 30 years, a 20-year term length for the same coverage amount could save you money every month. Consider a 30-year term if you’re certain you’ll need coverage for that long. The monthly premiums may be higher, but in the long run, it will usually cost less than reapplying for 10-year term coverage after your 20-year policy expires. Why? The insurance contract you get two decades from now will cost more: one of the most basic life insurance rules is that prices rise as you get older. Furthermore, health problems tend to arise over time. For example, you need to develop high blood pressure in a few years. Even if well-controlled, such a diagnosis will raise the cost of new coverage. In some cases, your health status may make a new policy unaffordable.
Permanent life insurance
Thirty years is a long time, but if long-term coverage is important to you, consider permanent life insurance. So It lasts as long as you pay the premiums. These policies include a wealth-building component – the policy’s cash value – that helps make coverage last indefinitely while also providing other benefits. A little portion of your premium dollars are invested, and your cash value grows tax-deferred over time. Within a few years, it can grow into a useful sum that can be tax-advantagedly borrowed against, used to pay premiums, or even surrendered for cash to help fund your retirement. In any case, families are entitled to the entire death benefit payment from the start of the insurance contract.
Comparison of term, whole, and universal life
|Term Life Insurance||Whole Life Insurance||Universal Life Insurance|
|period Of Coverage||Specific Term Limited||Permanent||Permanent|
|Builds cash value||–||✓||✓|
|Cost for a given death benefit||whole or universal Are More Expensive||It’s More expensive than term||It’s More expensive than term|
|Premiums||fixed Typically||fixed Typically||Can vary|
|Income tax-free death benefit||✓||✓||✓|
In conclusion, a 30-year term life insurance policy is a cost-effective way to provide long-term coverage for a specific period of time. It is best suited for individuals who need coverage for a specific period, such as the length of a mortgage, or for those who want to provide financial security for their family during their working years.
Life insurance vs AD&D insurance: Your Complete Guide
Life insurance and accidental death and dismemberment (AD&D) insurance are two types of insurance that provide financial protection for individuals and their families in the event of death or injury. What is life insurance vs ad&d? What you should know about life insurance vs ad&d? How much is life insurance vs ad&d? Here is your complete and ultimate guide to life insurance vs ad&d.
Life insurance is a contract between an individual and an insurance company, in which the individual pays a premium and the insurance company agrees to pay a death benefit to a designated beneficiary upon the individual’s death.
Life insurance vs. AD&D insurance
Life insurance can be purchased as a term policy, which provides coverage for a specific period of time, or as a whole life policy, which provides coverage for the individual’s entire life.
AD&D insurance is a type of insurance that provides financial protection in the event of accidental death or injury. This type of insurance typically pays a death benefit if the individual dies as a result of an accident, and may also provide a benefit for injuries that result in the loss of a limb, a sight, or hearing. AD&D insurance is usually an add-on coverage to a life insurance policy and is less common.
Both life insurance and AD&D insurance can be an important part of a comprehensive financial plan and are designed to provide financial security for loved ones in the event of a tragic event. The main difference between the two is that life insurance provides coverage for all causes of death, while AD&D insurance only provides coverage for accidental death or injury.
When deciding which type of insurance to purchase, it is important to consider your specific needs and budget. You may also want to consult with a financial advisor to determine the best coverage for your situation.
What is AD&D insurance?
The policy will specify the types of accidents and injuries that your AD&D coverage will cover. Accidental dismemberment may include not only the loss of a limb, but also serious accidental trauma that prevents you from working, depending on your policy. AD&D insurance may cover the following accidents:
- Accidents in automobiles
- Injuries or fatalities at work
- Injuries or deaths caused by fire
- Mishaps involving firearms
- Falls and other traumatic incidents
What is ADB insurance?
Life insurance policies from AD&D and ADB only pay out in the event of an accident. The main distinction is that an ADB policy may only pay out for a fatal accident, whereas an AD&D policy may pay out for accidental dismemberment and certain accidental injuries. Insurers may only provide one or both.
What isn’t AD&D insurance supposed to cover?
While AD&D insurance may cover accidental death and murder, many other causes of death and injury, such as:
- Specific leisure activities
- Accidents caused by drugs or alcohol
- Natural occurrences or disease
Keep in mind that if you work in a high-risk profession, such as firefighting, law enforcement, or the military, you may not be eligible for AD&D coverage. Shop around because your eligibility may vary by insurer.
The cost of accidental death insurance in comparison to life insurance
Accidental death insurance is typically less expensive than standard life insurance premiums. Your AD&D insurance premium, like your life insurance premium, will be determined by the information you provide in your application and the death benefit you select. And as you get older, AD&D will become more expensive.
AD&D or ADB coverage should be tailored to you, so speaking with a life insurer directly can help you find the best options for your coverage needs and budget.
Do AD&D and life insurance work together?
You may be able to combine accidental death and dismemberment coverage with life insurance as a rider on your life policy, depending on the insurer. Alternatively, you can purchase AD&D insurance as a separate policy to supplement your existing life insurance. However, standalone AD&D policies are more common for people who don’t qualify for standard life insurance but still want some coverage — and they aren’t available from all insurers.
When should an AD&D rider be added to life insurance?
If you don’t already have life or AD&D insurance and want additional coverage for accidents, consider purchasing a standard life insurance policy with an AD&D life insurance rider. If you die in a covered accident, the AD&D rider increases your life insurance death benefit, and it pays out a set amount if you suffer a qualifying accidental injury.
You can’t usually add a rider after you’ve purchased a life insurance policy, so ask about it when you’re shopping for life insurance. Purchasing a rider rather than a standalone AD&D policy is usually less expensive. Compare rates and coverage options to find the best deal for you.
Is it necessary for me to have both life insurance and AD&D?
If you want coverage in the event of an unintentional serious injury, it may make sense to purchase an AD&D policy or rider in addition to your standard life insurance policy. An accidental death and dismemberment (AD&D) insurance policy or rider covers certain accidental injuries (in addition to accidental death), whereas standard life insurance only covers death. However, AD&D insurance is not a replacement for standard life insurance because it only applies to accidental death, whereas standard life insurance provides an all-cause death benefit.
When would I require additional life and AD&D insurance?
Standard life insurance with an all-cause death benefit covers you for the majority of causes of death, but not for non-fatal injuries. So, if you already have life insurance and are concerned about the costs of a serious accident, it may make sense to supplement it with an AD&D standalone policy.
Is it worthwhile to purchase accidental death insurance?
If you qualify, term life insurance pays out for far more causes of death than AD&D insurance, and it may not cost much more. If you’re worried about accidents, adding an AD&D rider to a standard life insurance policy may make more sense than purchasing a separate AD&D policy.
However, if you do not qualify for standard life insurance, AD&D coverage may be preferable to none. An AD&D policy may be easier to qualify for because there is no medical exam required, and you can usually get an AD&D policy faster than a standard life policy.
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