How to Manage Insurance Policies After a Divorce
Latrice Knighton is an award-winning divorce attorney, life coach, and speaker. She solves problems using her experience and legal knowledge to offer practical advice.
Every one going through a divorce wants to insure future financial security for themselves and their children. Listen to Kevin Reardon, of Shakespeare Wealth, for tips on how to manage insurance policies after a divorce.
Insurance is a critical piece of financial stability for you and your loved ones, it is an invaluable financial planning tool. Divorce is terrible, but death and disability can be financially catastrophic for you and your dependents.
Issuance needs will change over time, and it is important to structure insurance accordingly. You may have good intentions to buy
insurance today, but your ability to get life insurance may change or simply go away; don’t delay on getting the right amount of insurance!
Shakespeare is a fee-only advisor. That means we have no conflicts of interest when we evaluate a client’s insurance needs. We do not sell insurance of any kind. As a result, our recommendations carry more weight than a commission-based advisor trying to sell you a product.
Listen to Certified Financial Planner, Kevin Reardon from Shakespeare Wealth, if you’re feeling worried about insurance after a divorce and need some clarity about what to expect.
In this episode, you’ll get advice and tips from Kevin Reardon of Shakespeare Wealth Management, Inc. to help prepare for insurance after a divorce.
What’s more, this same advice and tips are important to know if you are considering individual life insurance policies, group life insurance policies, retirement accounts, and deferred compensations plans. Write questions down now and save your future self untold amounts of worry, confusion and time.
The Main Takeaways From This Presentation Are:
What are the different types of insurance? (0:00:14)
Life Insurance, Disability Insurance, Property and Casualty Insurance, and Long Term Care Insurance.
What is Life Insurance? (0:00:30)
There are generally two types of Life Insurance; Group Life Insurance, and Individual Life Insurance. Group Life Insurance, offered through an employer which covers a portion, or percent, of a persons wages.
Individual Life Insurance is insurance offered to an individual through a private life insurance company. You will be offered whole life or term life insurance. Term insurance is good for a period of time; 10,15, or 30 years.
What is Disability Insurance? (0:01:00)
Most employers will offer some type of group disability insurance. This will pay you a percentage of your current income if you become injured, or are unable to work. Typically these will max out at 60-66% of your current wage. If you are not offered this type of insurance, you can privately obtain more disability insurance from a private insurance company.
What is Property and Casualty Insurance? (0:01:30)
Property and Casualty (P&C) Insurance, is insurance on property, like, your home. Riders are additional insurance which offers coverage on expensive items, such as jewelry. Umbrella insurance then sits on top of P&C Insurance and Riders to provide any additional coverage you may need. These are important for higher asset clients, or for high risk assets, like pools and boats.
What is Long Term Care Insurance? (0:02:05)
Long Term Care Insurance is insurance for those that become unable to care for themselves in the event of illness or long term disability.
What are your insurance needs? (0:02:15)
Insurance is an absolutely invaluable financial planning tool. Divorce is terrible, but death and disability can be financially catastrophic. You should have 3-5x your income for life insurance needs, or 8x your assets. The best way to find your specific need is to do a financial plan analysis.
What is a Financial Plan Analysis? (0:02:56)
A financial plan analysis looks at all future and current assets, income and expenses, taking into consideration unexpected financial expenses like college, or home repairs. After this analysis a stress test of your finical plan is configured in the event of a premature death, disability, or long term care need.
Issuance needs will change over time, and it is important to structure insurance accordingly. You may have good intentions to buy insurance today, but your ability to get life insurance may change or simply go away if you obtain a health risk. Don’t delay on getting the right amount of insurance today!
What are some considerations for life insurance during a divorce? (0:04:15)
Some things to consider during a divorce are to calculate the current value of all future divorce maintenance, and/or child support payments and insure that benefit accordingly. The divorce decree should clearly indicate the amount of insurance that each party needs, who pays for it, and who the beneficiaries will be. It may be important to cover your ex-spouse additionally out of pocket if you only have a group (employee) life insurance policy.
What are Beneficiary Designations? (0:06:21)
Beneficiary Designations is the person receiving financial payouts after you have passed away. These are important to change after there has been a divorce, as they override what is written in a will. These need to be updated after a divorce as life insurance policies and retirement accounts need to be adjusted individually, making sure to check group life insurance policies through your employer.
You will want to check individual life insurance policies, group life insurance policies, retirement accounts, and deferred compensations plans which all operate on a beneficiary designations and should be properly and currently filled out.
Why Shakespeare Wealth Management, Inc.? (0:07:50)
Shakespeare Wealth Management, Inc. caters to high net-worth clients who have at least $1mm of assets. For a complimentary review of your finical situation give them a call at (262) 814-1600, and speak with Kevin Reardon.
Great. How can clients contact you?
Shakespeare Wealth Management, Inc.
N22 W27847 Edgewater Drive
Pewaukee, WI 53072
You get to choose the path your life takes. My hope is that today’s show and every show will help you make choices that are aligned with your personal values and goals.
As always, thanks for reading, watching and adding your voice. You matter. Your voice matters.