Crucial Insurance Changes After Divorce:
3. Disability insurance
Although often ignored, disability insurance is an important financial tool. Disability insurance helps to replace part of your income if you are unable to work because of sickness or injury. According to the Social Security Administration, people in their twenties have about a 13% chance of passing away before retirement age but have more than a 25% chance of becoming disabled in the same amount of time. A person is more likely to become disabled for at least 90 days than to die before age 67.
The American Institute of CPAs recommends that everyone look into adding disability insurance to their divorce agreement before it is finalized. This insurance could help to replace child support or alimony payments in the event that the higher-earning spouse becomes disabled. Of course, it is smart to have disability coverage no matter your income.
During this stressful legal and emotional time, it is important to have a divorce attorney that you can trust. Brandon Legal Group’s divorce attorney’s are dedicated to providing you with the legal guidance and support you need.