Many people believe that domestic violence is all about emotional and physical abuse. However, it also includes financial abuse including viatical insurance settlement cases.
Domestic violence victims are denied the chance to acquire, use, or maintain financial resources. For instance, a partner may be prevented from working or accessing a credit card or a bank. Accessing financial resources is an important thing for the victims.
Here is a list of the financial and insurance tips to help domestic violence victims in achieving financial security.
- Securing your records
Keep your key documents, such as birth certificate, passport, and driving license safe. Additionally, keep your financial documents such as insurance policies and bank statements under the custody of a family member or a trusted friend. Alternatively, you can keep them in a bank safety deposit box.
Your credit profile should be protected by changing the debit and ATM card PIN codes regularly. Ensure you close any joint credit card or banking accounts you had with your abuser before leaving. You can also seek help from the Social Security Administration to get a new Social Security number.
- Know your financial standing
It is important to understand your financial standing because knowledge is power. Figure out your bank account balances, source of income, debts owed, and property owned. Ensure that all the bills have been paid to avoid future complications with your insurance policy.
- Create a financial safety net
Now you can exit because you have a clear picture of your financial standing. However, you need to assess the balance between your income and expenses to see if you can meet all the basic needs. Then you can develop a savings plan and an emergency fund to ensure there is a safety net before leaving.
- Make changes to the insurance policies
You need to make a few changes to your insurance policy. Get a separate auto insurance cover if you are taking the car with you when leaving the abuser’s house. In case you buy a new car, get a new auto insurance policy.
Purchase a renter’s insurance policy if you are going to rent a house or a homeowner’s policy if you buy a home. You should also make changes to your life insurance policy by changing the names of the beneficiaries. You can also get a life settlement of your life insurance policy and purchase a new one.
- Maintain a good credit rating
You need to keep your credit report clean because it can help you get a new credit card. Avoid missing payments and service your debts in time to maintain a good credit rating. Seek credit monitoring services from approved financial institutions.
- Seek assistance
Seek assistance from faith-based organizations, the internet, libraries, local domestic violence programs, and friends.
Domestic violence involves physical, emotional, and financial abuse. Therefore, domestic violence victims need some financial and insurance tips to help them achieve financial security as they seek justice. The above tips will help the victims plan their finances before and after leaving the abusive partners.