Congratulations on tying the knot! Amidst the joy of honeymoon plans and thank-you cards, there’s another ‘to-do’ for your list: understanding insurance changes post-wedding.
From health to auto, marriage may impact your insurance plans. Let’s break down what newlyweds need to know.
1. Health Insurance: To Combine or Not?
Benefits of Combining:
- Cost Savings: Often, it’s more affordable to have one family plan than two individual plans, especially if one spouse’s employer offers a substantial contribution to family coverage.
- Convenience: Streamline paperwork and due dates by having one health policy.
Considerations:
- Coverage Differences: Review both plans. One might offer services or specialists essential to one partner.
- Open Enrollment: Generally, you can only switch health plans during the open enrollment period. However, marriage qualifies as a ‘life event,’ allowing for a special enrollment opportunity. You usually have 30 days post-wedding to make changes.
2. Auto Insurance: A Unified Road Ahead?
Benefits of Combining:
- Multi-car Discount: Many insurers offer discounts if you insure more than one vehicle on the same policy.
- Simplified Management: Like health insurance, combining means fewer due dates and less paperwork.
Considerations:
- Driving Records: If one partner has a not-so-stellar driving record, combining might increase rates. Compare individual vs. joint policy costs.
- Vehicle Types: If one spouse drives a luxury car and the other an older model, individual plans might be more cost-effective.
3. Life Insurance: Protecting Your Shared Future
Benefits of New or Adjusted Policies:
- Financial Security: If something happens to one partner, life insurance ensures the other isn’t burdened with debts or financial challenges.
- Changing Beneficiaries: You might wish to designate your spouse as your primary beneficiary.
Considerations:
- Policy Types: Decide between term life insurance (covers you for a specified term) or whole life insurance (lifetime coverage with investment components).
- Coverage Amount: With joint financial responsibilities, it might be time to increase your coverage.
4. Home Insurance: Covering Your Nest
If you’re moving to a new place together or one is moving into the other’s existing home, inform your home insurance provider.
Benefits of Reviewing Your Policy:
- Inventory Adjustments: Combining households often means acquiring more belongings. Ensure your policy covers the increased value of your combined possessions.
- Potential Discounts: Married couples may qualify for lower home insurance rates, as they’re perceived as a lower risk.
Considerations:
- Coverage Needs: If you received valuable wedding gifts like jewelry or electronics, you might need additional coverage.
Wrap-Up and Tips
- Seek Expert Guidance: As newlyweds, it’s wise to consult with an insurance agent to discuss your unique needs and options.
- Review Annually: As life evolves, your insurance needs will too. Make it a post-wedding tradition to review your policies annually.
Marriage signifies the start of a shared life journey. As you navigate this new path, ensuring you’re both adequately protected can provide peace of mind. Understand your insurance needs, evaluate your options, and step into this exciting new chapter confidently!
NEXT: Key Things to Know Before Applying For Life Insurance
Disclosure: The information provided by The Financial Genie is for informational purposes only. It should not be considered legal or financial advice. You should consult with an attorney or other professional to determine what may be best for your individual needs. The Financial Genie does not make any guarantee or other promise as to any results that may be obtained from using our content. No one should make any investment decision without first consulting his or her own financial advisor and conducting his or her own research and due diligence. Additionally, some of the organizations with products on our site may pay us a referral fee or affiliate commission when you click to apply for those products.