Don’t Test For Richer or Poorer: Insurance Options For Newlyweds

Marriage usually changes how insurance is thought about and approached. Insurance, especially for newlyweds, is much more complicated than insuring a specific object. Think of life as a growing puzzle. You’re constantly laying down new pieces and fitting them all together. Marriage is a big puzzle piece that’s often accompanied by other parts of your life puzzle, such as a mortgage and children. We all hope that these pieces fit together without interruption or chaos. However, that isn’t always the case. Insurance is a way to protect your puzzle pieces and secure the future of your new family.

Life Insurance

Marriage inevitably brings about many changes – from where you live to your standard of living. These changes are usually designed around the primary breadwinner’s income or the spouses’ combined income. An unexpected death can result in financial hardship if not carefully anticipated. Life insurance is intended as protection should one spouse die unexpectedly and leave the other responsible for this new life.

When purchasing life insurance, there are many factors to consider, mainly inflation, monthly debts and income, and future financial obligations. A good rule of thumb for ordinary families is to have a minimum coverage that’s ten times the primary annual income. However, this wouldn’t be applicable in all situations; for example, you might have a disabled child that increases financial obligations. It’s best to speak with a life insurance agent to help you determine how much coverage you need.

If you have an existing life insurance policy, it’s essential to revisit it, make any coverage adjustments, and possibly rename your beneficiary.

Disability Insurance

Disability insurance is just as vital as life insurance. Statistically, disability is more likely for younger married couples than premature death. Disability insurance is essential for young couples taking on the responsibility of purchasing their first home. Imagine for a moment that you or your spouse suffer an illness or injury that results in an inability to work. The absent income could mean failing to pay your mortgage, especially if the affected spouse was the only one working. Disability insurance protects you from such circumstances by covering a portion of your income.

Automobile, Homeowner’s, And Renter’s Insurance

Most couples will find it more cost-efficient to use the same automobile insurance company. Many carriers offer a discount based on the number of vehicles insured and possibly an additional reduction for carrying homeowner’s insurance with them. Even those not financially ready for a mortgage should still use renter’s insurance to protect their newly combined possessions.

Health Insurance

Like auto insurance, many couples may find it more cost-efficient for both health insurance policies to be through the same company. Spouses can generally be added to an existing policy after marriage. Look to see which option offers the lowest premiums. And, if planning on starting a family immediately, be sure to look at which options cover prenatal care.

Financial solvency is hard enough when you only need to worry about yourself. Now that you have a spouse, there are even more angles to cover and ways things can go wrong in your puzzle. Why test for richer or poorer when there are many ways to guard against the latter?

— Call or text Brian Gruss at 352-508-4221 to discuss your life insurance options.