When a person gets divorced in Illinois, it is important to take time to review how it could impact that individual’s insurance coverage. After a marriage ends, someone who was covered by a spouse’s insurance policy may no longer be covered. One option to obtain coverage in the aftermath of a divorce is to take advantage of the Consolidated Omnibus Budget Reconciliation Act, or COBRA. Another option is to purchase a policy through the Affordable Care Act, or ACA.
While COBRA allows a person to maintain his or her exact coverage for up to three years, it may be more expensive than an ACA policy. Individuals who are facing the prospect of ending their marriages should also look closely at their life insurance needs. Those who receive spousal support should buy a policy and make payments on it. This ensures that the policy remains in effect without any changes after the divorce agreement is finalized.
Ideally, the policy will be purchased before the settlement goes into effect. In the event that the paying spouse cannot be insured, the recipient spouse has the ability to protect him or herself in other ways. It is also a good idea to review existing life insurance policies that were purchased during the marriage as they may be labeled as marital assets.
A divorce may mean many changes in a person’s life, including the loss of health or other forms of insurance coverage. An individual might be able to obtain a larger share of marital assets or spousal support in an effort to pay for a new policy. Spousal support may also help a person who didn’t work during a marriage to pay rent or other expenses after the divorce is finalized. A family law attorney may help a person during divorce settlement talks.