As a newly single woman, whether through divorce or the loss of a spouse, benefits open enrollment presents an important opportunity to reassess your health and financial security. Significant life changes often require adjustments to your health, life, and disability insurance to ensure your coverage aligns with your new circumstances and goals.
If you work for a company that provides benefits for you, you typically have open enrollment in October or November each year. Now is the perfect time to review your benefits in light of your new situation and make sure they are appropriate. In today’s post, I am going to discuss some key points to keep in mind during open enrollment.
Review Your Health Insurance Options
If you previously shared health insurance with your spouse, this is the time to evaluate your own coverage needs. You may have access to employer-sponsored plans or need to purchase insurance through the marketplace.
- Employer-Sponsored Coverage: If you are employed, compare your health insurance options, considering monthly premiums, deductibles, co-pays, and out-of-pocket maximums. Ensure the plan you choose includes your preferred doctors and provides adequate coverage for any ongoing medical needs. This is also a great time to consider moving to a High Deductible Health Plan and taking advantage of an HSA if your company offers that opportunity. An HSA is triple tax-exempt savings account: you get a current year tax deduction on any contributions you make, your account grows tax deferred, and if you use the money for healthcare, you are able to withdraw it without paying any taxes as well. This is the only type of account that offers this kind of tax benefit and so it can be a great way to get some additional tax smart savings. Do keep in mind though, that you have to have a High Deductible Health Plan in order to be eligible and that may not be the right solution for your family given your medical needs.
- Marketplace Coverage: If you’re purchasing insurance on your own, explore other plans before allowing your coverage to auto-renew. Reassess your income and family size, as this can impact your eligibility for subsidies under the Affordable Care Act.
If you’re in a new state or anticipate moving, don’t forget to review the availability of Medicare Supplement or Advantage plans if you’re eligible.
Evaluate Life Insurance Needs
As your circumstances shift, so might your life insurance needs. Whether you’re now solely responsible for raising children, funding future goals, or paying off a mortgage, your coverage should reflect your current responsibilities.
- Permanent Life Insurance: If you have a permanent policy (like whole life or universal life), request an in-force illustration to review how the policy is performing. This includes checking premiums, dividends, and cash value accumulation. It’s always a good idea to compare this to the illustrations you were shown when you purchased the policy to understand if it is performing as you were told that it would.
- Term Insurance: Take stock of how many years remain on your term life policy. You may need to adjust the length or explore conversion options if your needs have changed. While the term life offered through your employer may cover your needs, you always have the option to add a private policy if it does not.
It’s also important to update the beneficiaries of your life insurance policies. In the event of a divorce, ensure your former spouse is removed if necessary, and that primary and contingent beneficiaries reflect your new wishes.
Understand Disability Insurance
Now that you are single, disability insurance can provide crucial income protection in the event that you are unable to work due to illness or injury. Many employers offer coverage, but it’s important to understand what is included in your policy.
- Adequate Coverage: Review whether your employer-provided disability insurance covers enough of your income to meet your living expenses if you’re disabled. Consider whether purchasing additional individual disability insurance is necessary. And if you don’t currently have coverage, I highly recommend adding it. It is more likely that you will be unable to work for some period of time due to illness than that you die and yet many people never think about having disability insurance.
- Private Policies: If you anticipate job changes or self-employment, you may want to look into private disability insurance that isn’t tied to your employer.
Consider Long-Term Care Insurance
As a newly single woman, planning for future healthcare needs becomes even more important. Long-term care insurance can help cover services such as assisted living, nursing home care, or in-home assistance, which may be harder to afford without a partner’s income.
- Policy Review: Ensure the policy benefits (such as the coverage amount and benefit period) are appropriate for your future needs. If you’ve received notices of premium increases, evaluate your options and ensure the coverage remains financially sustainable for the long term.
Update Beneficiaries and Ownership
It’s essential to update not only life insurance policies but also retirement accounts and other financial assets to reflect any changes to your beneficiaries. As a newly single woman, it’s even more important to ensure your primary and contingent beneficiaries are up to date.
- Consider Trusts: If your estate planning includes creating an irrevocable life insurance trust (ILIT) or other financial vehicles, ensure the details are properly managed so that your beneficiaries are adequately protected.
Retirement and Income Planning
While this may not be directly tied to benefits enrollment, your retirement planning might also need a fresh look. If you’re now solely responsible for funding your retirement, ensure that your contributions align with your future goals.
- Retirement Accounts: If you haven’t done so already, update your beneficiaries on all retirement accounts. Additionally, review your investment strategies to ensure they match your current financial situation and risk tolerance. It’s not uncommon for newly single women to feel differently about the level of risk in their investments than they did when married. It is perfectly reasonable to update your asset allocation to something that feels more comfortable given your new circumstances.
Final Thoughts
Open enrollment is the ideal time to reassess your health and financial coverage, especially if you are navigating life as a newly single woman. Taking the time to carefully review your health insurance, life insurance, and disability insurance will provide peace of mind and help secure your financial future. Make the necessary updates and adjustments now so you can move forward confidently, knowing you are protected and prepared for the next chapter.
Sara Zuckerman, CFP®, CDFA® is the founder of Reset Financial Planning located in Scottsdale, AZ. She supports women across the country with a focus on helping divorcees and widows align their financial resources with their values to plan for the next chapter of their lives.
If you are interested in learning about how Reset Financial Planning can help you take charge of your finances as a newly single woman, please contact us at or schedule a free 20-minute consultation.
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Disclaimer: This article is provided for educational, general information, and illustration purposes only. Nothing contained in the material constitutes tax advice, a recommendation for the purchase or sale of any security, or investment advisory services. We encourage you to consult a financial planner, accountant, and/or legal counsel for advice specific to your situation. Reproduction of this material is prohibited without written permission from Reset Financial Planning, LLC, and all rights are reserved.
