10 Insurance Tips for Newlyweds & Engaged Couples
It’s easy for many couples to get wrapped up in the excitement of planning a wedding and fail to fully think through the many financial implications of joining lives. In fact, a recent survey revealed disconnects in what couples know is important to discuss before getting married — including insurance issues — and what they actually discuss.
1. Have “The Talk”.
Have a pre-wedding sit-down to address important topics in auto, home, health, and life insurance.
2. Driving record.
Finding out you’re in love with a speed demon after saying “I do” can be a shock to your psyche, and your auto insurance premiums. You may want to think twice about combining coverage, and educate yourself about named-driver exclusion clauses.
3. Sharing grown-up ‘toys.’
The rules likely change when you go from passenger to driver of your new spouse’s motorcycle, boat or ATV. Before you take the wheel, find out who is or is not covered.
4. New home or fixer-upper.
A renovation investment of $5,000 or more can change a home’s replacement value, and your insurance needs. As you research coverage for your first home together, think about what the structure offers today … and tomorrow.
5. Where to live.
Location, location, location is not only important to a home’s resale value. Your address, as well as construction type and square footage, likely will impact your homeowners’ insurance premiums. Do your homework before crossing the threshold.
6. Which coverage to keep.
The lowest premium isn’t the only consideration when deciding between health insurance plans, or if it makes sense to stick with your individual coverage. To avoid a short-term decision that results in long-term out-of-pocket expenses, be sure to review provisions related to cost-sharing – deductibles, co-pays and coinsurance – and consider what is NOT covered by the plan.
7. New family coverage.
Most group insurance providers consider marriage a qualifying major event, which means you can make related policy changes outside the approved open enrollment period. To avoid a coverage lapse, alert your provider immediately if “I do” also includes stepchildren.
8. Update beneficiaries.
Even if your agent was in the wedding party, to name your new spouse as beneficiary you must proactively contact your HR department or individual life insurance provider.
9. Life insurance – how much is enough?
Now that “I” actually means “we,” you may want to revisit your life insurance coverage. To determine the correct amount, consider future income potential, the cost of raising kids and any outstanding mortgage.
10. Keep track of property.
How many of us really know how much ‘stuff’ we own? Without a clear grasp of our property, our most prized possessions might not be covered by our homeowners or renters insurance. Take pictures and make an album electronically of each room and any valuables.
We are coming up on wedding season in the Pacific Northwest, so take the time to contact MIM with all of your concerns, before the honeymoon phase is over!
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