Insurance Basics for Newlyweds

After the champagne is gone, the flowers are wilted, the tuxedo is returned and the guests have gone home, real life begins for newlyweds. Topics like necessary insurance changes don’t often come up when planning a wedding, but after the honeymoon, these important changes need to be made. Marriage means making sure that you and your spouse are both protected from unexpected financial disasters, especially when money might be tight.

Insurance For Newlyweds

When you're single, your insurance needs are fairly simple. But once you tie the knot, the coverage you once had might not be sufficient. Marriage suggests a new level of financial accountability. Failing to plan for these financial uncertainties can put tremendous strain on even the best of relationships, which is why having adequate coverage is essential.

#1 - Life Insurance: When you were single and without children, you most likely had little need for life insurance. But newlyweds should immediately explore their options. Once you’re married, regardless of the length of the marriage, you become equally dependent for one another’s debts and medical expenses should tragedy hit. Life insurance can be used to pay off debts, provide income, and generally ensure that the surviving spouse's lifestyle doesn't suffer a severe impact if something were to happen. It’s also a wise idea to get life insurance while you’re young because it is often less expensive.

#2 - Auto Insurance: Good news! Often, getting married can actually give you an auto discount. Consolidating your policy with your new spouse’s policy with the same insurer can also provide family discounts or multiple car discounts. Maintain your current level of coverage, or consider increasing coverage to reflect your cumulative assets.

#3 – Homeowners/Renters Insurance: While most newlywed couples spend a number of years renting, it is important to invest in a renters or homeowners policy. Protecting your assets and your home is crucial (and generally required). Check with your landlord to see if you may be eligible for a rent discount if you provide proof of renters insurance.

#4 - Health Insurance: Health insurance can be a bit more complicated for newlyweds, but it’s important that each review their respective health insurance policies as soon as they get married. Once you are married, you are no longer eligible to stay on your parent’s health insurance policy. Perhaps one spouse has a great policy through work, or if both spouses are employed, perhaps it’s most cost effective to remain on the individual employer plans. Health insurance should not be overlooked and should be reviewed and renewed as soon as marriage plans begin.

Sharing your lives with someone else involves sharing risks, so it’s important to make sure that you and your spouse have financial protection from traffic accidents, home damages, catastrophic events or early death. With adequate you’ll both enjoy peace of mind and a strong foundation to begin your life together.

By Matt Reynolds - Google+

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