- The FRESH START insurance policy provides coverage for health care and the inability to pay certain pensions after a divorce.
- Subscribing to this contract reduces the latency period between two health insurance contracts and allows you to get cheaper insurance.
- There is also unpaid alimony insurance to cover situations where the payment of alimony stops, with a maximum duration of coverage of one year to 18 months.
The insurance contract that gives you coverage for health care and the inability to meet certain pension payments is called the FRESH START contract.
Even if both parties to the divorcing couple agree on the consequences of the separation, there is always a risk of other kinds of complications arising. Assurance pas Cher provides you with information on this type of contract.
- When should you take out a divorce insurance policy?
- Coverage for non-payment of pension
- Divorce Insurance Rates
When should you take out a divorce insurance policy?
For example, there is the latency period between an old health insurance contract that covered the wife but as the wife, the contract is in the husband’s name. After divorce, if the woman subscribes to an independent contract, there will be a latency period for the new contract to come into effect. The New Start Contract may reduce the latency period to between three months and 6 months. It also allows you to get cheaper health insurance.
There is also the case of retirement pensions, which are often 38% lower for women than for men, (explained by the time not worked and occupied in maternity). This difference is normally corrected by the maintenance paid following a divorce to balance the insufficient finances of one of the parties of the separated couple.
Coverage for non-payment of pension
In the situation where the couple has children, after divorce, alimony is required by law, which must be paid on specific dates. Sometimes you don’t want to pay it or you can’t pay it.
In any case, an action can be taken against the defaulter through the family allowance fund, but this is an operation that takes time. For these situations, there is an APAI insurance, the unpaid alimony insurance. This insurance is used in place of unpaid pensions for a maximum period of one year to a maximum of 18 months, after having passed a latency period of six months.
If the payment of pensions stops during the latency period, the insurance institution cancels the contract and refunds the premiums paid.
Divorce Insurance Rates
The rates of this type of insurance depend on the value of the pensions covered by the contract. Examples
- Under the APAI, the price of insurance is 9.90 euros for a pension of 200 euros each month
- For a New Start contract, the price is 11 euros each month for a pension of 2,000 euros