Navigating Health and Insurance Challenges for Older Adults During a Divorce

Divorce can be especially challenging for older adults, particularly with health and general insurance issues at play. Learn key steps to manage insurance transitions and safeguard your future during this significant life change.

Divorce can be doubly challenging for older adults, especially when health and general insurance issues come into play. Our quick guide breaks down key steps to manage insurance transitions and safeguard your future during this significant life change.

In this article, you’ll discover actionable strategies designed to protect your health and your assets, or those of a family member, during a later-in-life divorce from Christy Munyon and David Willing, co-owners of My Insurance Guys Services, LLC.

The Importance of Proactive Insurance Management

If you’re older and facing divorce, insurance issues can become a major concern. Here’s why proactive management matters:

1. Avoid Coverage Lapses: One significant issue is the potential lapse in coverage. For certain types of insurance, such as term life insurance, if premiums aren’t paid within 30 days, coverage can lapse. For individuals who’ve developed health issues over the years, this can mean facing difficulties obtaining new coverage. 

My Insurance Guys Services, LLC offers fail-safes like automatic premium payments from cash value if a premium is missed due to unexpected circumstances like hospitalization.

2. Medicare and Health Insurance Adjustments: If you’re over 65 and getting divorced, you must address Medicare coverage. Medicare A covers hospital expenses, while Medicare B covers 80% of other medical costs. The remaining 20% and deductibles can add up. 

When both spouses have separate Medicare supplements and are divorcing, adjustments will be necessary. An experienced insurance broker can guide you through Medicare plan transitions, ensuring that you maintain optimal coverage and avoid increased costs.

3. Timely Planning: Ideally, if you know a divorce is imminent, start addressing insurance issues sooner rather than later. For instance, if one spouse is on the other’s health insurance and they’re divorcing, they need to secure their own Medicare plan within 63 days of losing coverage to avoid penalties. A broker can assist in managing this transition smoothly, ensuring no coverage gaps occur.

Special Considerations for Older Adults

Older adults facing divorce may also have unique needs regarding life insurance and financial planning:

1. Protecting Assets for Dependents: Life insurance can provide a tax-free benefit for beneficiaries. If you have children or dependents, you need to double-check that they’re financially protected. Life insurance can cover final expenses or help maintain financial stability for your family. 

For instance, mortgage protection insurance can provide that if something happens to one or both parties, the mortgage will be covered, allowing children or other dependents to stay in their homes. My Insurance Guys Services, LLC can help you choose the right policy, whether it’s term life, whole life, or indexed universal life insurance.

2. Legacy Planning: For those who wish to leave a legacy or provide financial support for their children or grandchildren, life insurance can play a key role. Policies can be structured to provide funds for educational expenses, down payments on homes, or other significant needs. Additionally, high-level policies with features like return-of-premium options can offer added benefits, such as receiving premiums back if not used. 

3. Policy Reviews: It’s important to review existing insurance policies with an experienced broker to confirm they meet your current needs. Sometimes, policies may not work as expected, or premiums might increase significantly. Regular reviews with a knowledgeable advisor from My Insurance Guys Services, LLC can help you avoid pitfalls and ensure you have reliable, predictable coverage.

Getting the Right Support During This Challenging Time

During a divorce proceeding, the right insurance and financial planning support can make a significant difference. Whether it’s understanding Medicare adjustments, ensuring continuous life insurance coverage, or planning for the future, seeking professional advice is essential. My Insurance Guys Services, LLC provides expert guidance to navigate these complexities and prepare effectively for the changes ahead.

For older adults navigating divorce, addressing these insurance considerations with a knowledgeable advisor can provide you with peace of mind and help manage the complexities of this life transition effectively.

About My Insurance Guys Services, LLC

My Insurance Guys Services, LLC is your trusted partner for navigating Medicare, life insurance, and more. Co-owned by Christy Munyon and David Willing, the experienced team offers personalized, no-cost consultations to help you understand your Medicare options and secure the best plan for your needs. From life insurance and fixed indexed annuities to IRA rollovers and long-term care, My Insurance Guys Services, LLC provides comprehensive solutions tailored to protect your future. Explore your options with Christy and David today and move from confused to confident! Contact My Insurance Guys Services, LLC today!

Contact the Family Law Attorneys at Smedley Law Group, P.C. in Woodbury, NJ Today

The New Jersey family law attorneys at Smedley Law Group, P.C. represent clients throughout the state, including West Deptford, Woodbury Heights, Runnemede, and Westville. We understand how challenging it is to navigate a family law issue, which is why we’ll fight hard to protect your interests, and the interests of your loved ones, throughout the legal process. Call us at (856) 251-0800 or fill out our confidential contact form to schedule a consultation. We have an office conveniently located at 750 Cooper Street, Woodbury, NJ 08096.

The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.