The death of a spouse is a deeply emotional and challenging event. It may feel as if practical matters have no business intruding on your loss, yet reviewing and updating your insurance policies can help you maintain financial security during a difficult time. Neglecting these updates could leave you with insufficient coverage or unexpected costs. Here are essential insurance policies to examine after the loss of your spouse.

Life Insurance

One of the first policies to review is life insurance – both your own and any policies your spouse held. Start by verifying the ownership and beneficiary designations on your spouse’s policy. If you were the sole beneficiary, no changes may be needed. However, if there were other beneficiaries, such as children or a trust, you should check that their details are accurate. Trust details may change over time, so it’s important to review them periodically.

Next, decide on the payout option for the death benefit. Most life insurance policies offer a choice between a lump sum, installments, or an annuity. Consider your financial needs and consult a financial advisor to determine the best option for your situation. Finally, evaluate your own life insurance needs. With your spouse’s income or support no longer available, you may need to adjust your coverage to secure financial stability for yourself or any dependents.

Health Insurance

Health insurance is another critical policy to address. If you were covered under your spouse’s employer-sponsored plan, you might qualify for COBRA continuation coverage. This option typically allows you to stay on the plan for up to 36 months, though you’ll be responsible for the full premium cost, which can become extremely expensive. Alternatively, you might be eligible for a special enrollment period under the Affordable Care Act to explore individual health plan options. If you’re 65 or older, Medicare can be an option. Contact Medicare to understand how your spouse’s passing affects your coverage or potential enrollment deadlines.

Home and Auto Insurance

Updating your home and auto insurance policies is essential following your spouse’s death. Contact your provider to remove your spouse’s name and ensure you’re listed as the primary policyholder. This is also a good time to review your coverage levels.

With home insurance, consider whether your current policy still meets your needs and provides adequate protection for your property and belongings. For auto insurance, evaluate whether your driving habits or vehicle use have changed. You may find that adjusting coverage levels, exploring bundling options, or altering deductibles can better suit your current lifestyle and optimize your premiums.

Disability Insurance

If either you or your spouse had disability insurance, review these policies to understand any changes that may affect your benefits. Confirm the coverage amount and definition of disability outlined in the policy, and update the beneficiary designation if necessary. If you become disabled and are listed as a beneficiary, understanding your policy details can help you navigate the claims process more effectively. Disability insurance can provide crucial financial support if you’re unable to work, so be sure you’re aware of how to access this support if needed.

Long-Term Care Insurance

Long-term care insurance offers coverage for expenses related to assisted living, nursing homes, or in-home care. If you or your spouse had this type of insurance, you may want to review whether your current coverage still fits your needs. Depending on your age and health, long-term care coverage can be invaluable for managing the high costs of care as you age.

Check to see if your state offers a Long-Term Care Partnership Program, which may help protect your assets if you eventually qualify for Medicaid. These programs can offer additional financial safeguards, ensuring you have access to long-term care services without depleting your resources.

If you have questions about insurance or need help, reach out – we’re here for you.