How divorce in India affects your insurance policies
What's the story
Divorce isn't just about splitting assets and untangling emotions—it also shakes up your insurance game.
Whether it's life, health, or property insurance, the impact of divorce on your policies can be just as complicated as the legal paperwork itself.
As relationships end, insurance becomes more than just a safety net—it's a battlefield. So, what happens to your coverage?
Let's dive into the fine print and guide you through this crucial, often-overlooked part of divorce in India.
Beneficiary update
Review and update beneficiary details
After a divorce, make sure to check your life insurance policy and update the beneficiary information.
If you still have your ex-spouse listed, you might want to change this so the death benefit goes to someone else you care about, like your kids or parents.
Forgetting to update this info can lead to benefits accidentally going to an ex-spouse, which might not be what you want anymore.
Health coverage
Assess health insurance coverage
After a divorce, many people lose their health insurance because they were covered under their spouse's plan provided by their employer.
It is crucial to evaluate your health insurance standing right after a divorce.
You might have to opt for an individual policy or check your eligibility for any government-sponsored health schemes available in India like Ayushman Bharat Yojana which offers free healthcare access to low-income earners.
Life insurance reevaluation
Reevaluate life insurance needs
Divorce can drastically alter your life insurance requirements.
If you share children, it's vital to guarantee their financial stability if you were to pass away unexpectedly.
You might need to raise your coverage or purchase a new policy to cover child support and education costs.
Conversely, if you no longer have financial dependents due to the divorce, it would be prudent to consider reducing your coverage.
Property and auto adjustments
Consider home and auto insurance adjustments
After a divorce, it's important to update insurance policies for any property or vehicles you previously owned together.
For auto insurance, make sure the policy matches the new owner's name once you've updated the ownership details.
Similarly, if one partner moves out or the property is sold, update home insurance accordingly.
Taking care of these changes quickly helps protect your financial interests during this time of transition.