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Congratulations! You've found the love of your life
and you have decided to tie the knot! In addition to planning the
rest of your lives together, it's important to tie together your
insurance programs. Some of your insurance policies, such as your
health and auto insurance, can be consolidated to save you money.
Furthermore, new types of insurance policies such as life insurance
may be necessary.
To get started, both you and your spouse should organize
all of your insurance polices, including those insurance benefits
provided at work. It's important to evaluate the following types
of insurance: auto, life, home/renters, health and disability insurance.
There's more good news when you get married. You'll
probably be able to save money on your auto insurance as well. Maybe
you can use the money you save to help pay off the bills from your
wedding and honeymoon!
Of the factors insurance companies use to determine
the price of an auto insurance policy, marital status is one of
the most important. Insurance companies have actuarial data that
shows married people are less likely to have car accidents. Insurance
companies also give discounts if you insure two or more cars on
the same policy. If both you and your new spouse each have a car,
you should look into combining the coverage into one policy. Lastly,
if you and your spouse own a home, look into getting your auto insurance
coverage with the same company that insures your home. Many companies
give discounts if you obtain coverage for multiple insurance products
with one company.
You may not have had life insurance coverage before
you were married; however, there's a good chance you'll need some
now. Getting married usually adds some form of financial dependency
between spouses. If both you and your spouse earn incomes, each
of you may be financially dependent on the other's income to maintain
the same standard of living. In this case you should both have life
insurance coverage to protect the other should one of you die prematurely.
If only one spouse earns an income, then he or she should have life
insurance coverage on his or her life. The spouse that does not
have an income may need life insurance coverage even though the
other spouse may not rely on him or her financially. If the spouse
that has no income is a parent, life coverage may be needed to cover
day care expenses, or if there is any debt life insurance coverage
may be needed to pay it off. For more information on determining
the amount and type of life insurance you may need, visit the Life 101 section.
Home or renters insurance is often overlooked when
people get married. While it may be obvious that home insurance
is necessary if you buy a home, and renters insurance is needed
if you rent a home; what happens if one spouse simply moves into
a home that the other already owns or rents? What should
happen but often does not, is that the home or renters' insurance
policy should be updated. Getting married does not change the value
of a home; however, it does change the value of the contents inside
the home. A home or renters insurance policy should be adjusted
when one spouse moves into a home with the other. That spouse probably
has property that needs to be protected such as clothing, furniture
and jewelry. The existing personal property limits on the home or
renters insurance policy should be adjusted to account for the increase
in value of the assets located in the home. Furthermore, personal
article floaters may also need to be added to protect high value
property such as jewelry that may not be covered in full under the
insurance policy.
As a newly married couple you'll probably be blessed
with wishes from friends and family that you enjoy good health and
prosperity in your new life. In order to enjoy good health, you'll
need to make sure your health insurance needs are properly addressed.
Whether you both have health insurance coverage or not, review your
options.
If both you and your spouse have coverage, you should
find out if it may make more sense for one of you to join the other's
health insurance plan. It may be more cost effective, and one spouse's
health plan may provide more benefits than the other spouse's policy.
On the other hand, if one spouse has health coverage and the other
does not, then look into adding that spouse onto the exiting health
insurance plan. Group health insurance policies allow employees
to add other family members to their plan on the anniversary of
the group policy or upon special events such as marriage or the
birth of a child.
If both you and your spouse have no health insurance,
then now's the time look for affordable coverage. First see if coverage
is available through your employer because group rates are often
less expensive than buying an individual policy. Also, if health
insurance is available through your employer you may be able to
pay for your monthly premiums before tax if your employer has established
a cafeteria plan. Inquire with your human resources or personnel
manager about your options.
One of the most often overlooked, yet most important
types of insurance is disability insurance. Whether your married
or single, disability insurance is a necessity unless you're a millionaire.
Disability insurance protects your ability to earn an income by
replacing a portion of your lost income should you become disabled.
Your employer may or may not offer disability insurance coverage.
It's important to find out if coverage is offered and; if so, what
type. There are two basic forms of disability insurance coverage:
short-term and long-term. Each can be purchased as an individual
or group policy (a group policy can only be offered through an employer
or affinity group).
Short-term Disability Insurance - As its name
implies, short-term disability insurance provides benefits for a
short period of time, usually three to six months. This policy normally
has a waiting period of 7 to 14 days (the period of time you must
wait from the start of your disability before benefits become payable).
Long-term Disability Insurance - Long-term
disability insurance provides benefits for a longer period of time
which can be anywhere from two years to lifetime. The most common
benefit period on a long-term policy is to age 65. In addition,
this policy can have a waiting period of 30 to 365 days (the period
of time you must wait from the start of your disability before benefits
become payable).
If you have any liquid assets, such as stock or money
in a savings account, you may not need short-term disability insurance
if the assets' value is large enough to cover your monthly expenses
for three to six months. On the other hand, your liquid assets probably
would not be sufficient if you had a long-term disability.
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