Dealing with the death of a loved one is one of the most painful experiences in life. While grieving, you may also be responsible for notifying other family members and making funeral arrangements. But unfortunately, these aren’t the only arrangements you’ll need to make. In the coming weeks, you’ll need to finalize your spouse’s estate and make some adjustments, particularly when it comes to your auto, homeowners and health insurance policies. If not, you’re at risk of losing coverage — especially if you’re not listed on the policy.
Auto insurance
You have a few options when it comes to your auto insurance. The first step is to notify your insurer about the death of your spouse. If they were the primary policyholder, you can request to have them removed from the policy and replace you as the primary policyholder. It’s important to note that this change could impact any premiums or discounts that were previously applied to your deceased spouse.
You can also request to have the policy canceled. Depending on the terms of your contract, some companies will reimburse you if the monthly, semiannual or annual premium has already been paid.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Whether you choose to keep the policy or cancel it, you’ll need to provide documentation that proves you are the spouse and verifies your partner’s death. If you have any questions about the process, be sure to talk with your current insurance agent. They may be able to help you make the best choice for your circumstances.
Homeowners insurance
Usually, both spouses are named on the homeowners insurance policy. When this happens, the policy may remain active depending on your insurer. Nonetheless, contact your company to let them know your spouse has passed. From there, they can remove the deceased spouse from the policy and replace the surviving spouse as the name insured.
A lot of times, homeowners insurance is bundled with auto insurance, so you may be able to take care of both of these policies at once.
If your policy becomes inactive for any reason, you’ll lose coverage. This will prevent you from making a claim in the event of an emergency.
As with auto insurance, your homeowners insurance provider will likely require you to provide documentation to make the necessary changes.
The most important thing is to not let your policy expire or become in active. If it does, you won’t have coverage if your house gets damaged.
If you’re unsure about your coverage, review your policy and talk with your agent.
Health insurance
Updating your health insurance policy is arguably the most important. If you don’t, you risk losing all health coverage, which means any doctor visits, hospitalizations and prescription refills won’t be covered.
If your family receives health insurance through your spouse’s employer, the Department of Labor says you and any dependents may have the option to special-enroll in that plan. If not, you may be able to special-enroll in coverage through HealthCare.gov, also known as the Health Insurance Marketplace.
In some cases, the spouse may be able to continue existing coverage for up to 36 months. You also have a right to buy extended health care coverage through COBRA. If so, most plans require you to elect coverage within 60 days of the plan’s notice.
Retirement savings and life insurance policies
In addition to updating your insurance policies, consider checking on any retirement savings. The Social Security Administration offers survivor benefits. If your spouse died prematurely, check your Social Security statements to determine how much your children will receive.
Take this opportunity to check on life insurance policies, too. You could be listed as a beneficiary.
The loss of a spouse can bring unimaginable pain. Handling funeral plans, notifying family members and grieving this loss is a lot for one person to handle. When it comes to your insurance, the best way to handle the transfer or cancellation of policies is to contact your company. They can help address any questions or concerns or options you may have for coverage.
To help ease the stress, sit down with your partner and make a plan for your estate. Decide who you’d like to name as beneficiaries, power of attorney or executor of the estate should either of you become widowed or die unexpectedly.
Related Content
- Five Financial Changes That Happen When Your Spouse Dies
- How to Qualify for Social Security Spousal and Survivor Benefits
- Social Security Strategies to Help Widows Replace Lost Income
- Don’t Let the 'Widow's Penalty' Blindside You: How to Prepare
- How to Choose Your Power of Attorney When You’re Remarried
-
Stock Market Today: Cautious Investors Let Stocks Drift LowerMarkets weigh encouraging trends for earnings and tariffs against concerning signals from U.S. consumers.
-
A Smart Way to Combat Economic RollercoastersSavings With rates on CDs remaining high for now, a CD ladder allows you to maximize your returns with flexibility to your cash when you need it.
-
Time to Spring-Clean Your Finances: A Financial Professional's Four Steps to Tidy Them UpA midyear review of everything from spending to saving, with adjustments as needed, can set you on track to financial security. Plus, don't forget to check in on your workplace benefits.
-
Why a Law Firm Secretly Recording Client Conversations Is Wrong (and Illegal)A law firm that has been recording client conversations without the clients' knowledge or permission and has threatened employees if they speak out faces legal and ethical challenges.
-
Donating Complex Assets Doesn't Have to Be ComplicatedIf you're looking to donate less-conventional assets but don't know where to start, this charity executive has answers, such as considering a donor-advised fund (DAF) for its tax benefits and ease of use.
-
Think a Repeal of the Estate Tax Wouldn't Affect You? WrongThe wording of any law that repeals or otherwise changes the federal estate tax could have an impact on all of us. Here's what you need to know, courtesy of an estate planning and tax attorney.
-
In Your 50s? We Need to Talk About Long-Term CareMany people don't like thinking about long-term care, but most people will need it. This financial professional recommends planning for these costs as early as possible to avoid stress later.
-
Social Security Pop Quiz: Are You Among the 89% of Americans Who'd Fail?Shockingly few people have any clue what their Social Security benefits could be. This financial adviser notes it's essential to understand that info and when it might be best to access your benefits.
-
Such Attractive Yields in High-Grade Munis Are Rare and May Not Last LongAccording to this munis expert, the last time munis were this cheap was a brief period in 2023. If you kicked yourself for missing out then, you have a second chance now.
-
Financial Analyst Sees a Bright Present for Municipal Bond InvestorsHigh-tax-bracket investors have an excellent opportunity to secure low-volatility, high-quality returns at yield levels rarely seen in over a decade.
