Maintain Your Life and Health Insurance

Stay Insured

Keep health insurance in effect for both spouses and all children.
Under the federal COBRA law, a covered worker’s dependents are eligible to continue group health insurance at their own expense for up to 36 months in companies with 20 or more workers.
The cost is 102 percent of the cost for active employees and coverage must be elected by an insured worker or dependent within 60 days of receipt of written notice about COBRA options from the employer or plan administrator.
Consider the cost of COBRA benefits or comparable health insurance coverage in the property settlement agreement.

Review Life and Disability Insurance

Purchase or maintain adequate life and disability insurance if it is required to assure the continuation of income streams such as child support. Otherwise, payments may stop upon the death or income loss of the payor, thereby jeopardizing the financial security of the ex-spouse and/or children.
Life insurance policies also become part of the property settlement process if they have cash surrender value.
The owner of a life insurance policy is responsible for paying premiums and naming beneficiaries and may decide to make changes if the settlement agreement does not require continued protection of an ex-spouse or children.