For someone rediscovering what it is to be single, you’ve got more to think about than just how to date during this digital era. You also have to look at your finances differently, including your insurance. Being newly single means you’re also newly independent and you might not have a source of back-up income. If you don’t then that means you should use insurance to make one for yourself.
Property Protection
If you’re divorcing or leaving a long term serious relationship,
you might have had joint home and car insurance. Now, you have to think about
getting these insured independently with your own policies. In regards to your
home insurance, make sure you do an inventory of your home. By doing this
you’ll know exactly what belongs to you and the amount of insurance you should
have for the contents. Educate yourself on rebuilding costs so you’ll decide on
the correct limits for your dwelling and if you reside in a flood zone, be sure
to also get flood insurance since flood damage isn’t covered under home
insurance.
As for auto insurance, speak with your agent about getting
the correct liability limits and you can check Kelley Blue Book for an idea of
what the value of your car is. Lastly, you’ll want to make sure you include a
loss of use benefits for both of your policies. This is important so that in
case you have an accident you’ll be able to get a rental car or if something
happens that makes your home unlivable, you’ll be able to have a portion of
your temporary lodging costs paid for.
Re-Evaluate Your Deductibles
Now that you have only your income, the insurance
deductibles you once had with your former partner may not be fitting. Look at
your savings and budget to figure out what is affordable for you.
Disability and
Long-Term Care
Since you now have only your income to depend on, one of
your biggest concerns should be to protect it. Having disability coverage
provides you with back-up income in case you’re not able to work. Disability
insurance can pay out a lot sooner than Social Security can and it can also be
planned to pay more than Social Security.
As you get older, you’ll become less able to do day to day
work activities, so it’ll be important to have arrangements for long-term care.
When this time comes, you should let your mind decide on the type of care that
you are going to receive, not just your budget. When you’re single, you have to
be your own supporter, and having long-term care insurance coverage will
provide you with the means to do that.
Re-Evaluate Your
Beneficiaries
Should you have a life insurance policy with your former
partner listed as the beneficiary, you’ll probably want to change that. If you
have children, you have the option of making a trust and making it the
beneficiary will guarantee that the money you leave behind goes to your
children. It’ll be looked after as well, until your children are older and
responsible enough to manage it on their own.
Remember the
Discounts
Protecting your budget is important so you can have
emergency funds set aside, but having to sacrifice your insurance policies to
have money available for it isn’t how you do it. To keep from making this
mistake, check with your insurance agent about the discounts you might have
available to you.
We’re aware of the challenges that the newly single can
face, and we’re here to help you manage it all. Call us today to begin
creating your independent insurance policies.
