For Richer or Poorer – Insurance for Your New Life

Most people carry insurance on their physical assets, such as cars and boats, but with a new marriage, you must approach the subject of insurance with a much broader vision.  It is intrinsically more complicated than insuring a specific object.  You must anticipate and secure the future and protect the first pieces of the puzzle that will eventually be part of a much bigger picture.  Marriage is about the rest of your life, which we all hope will be free of calamity but can be protected should it not be.

Life Insurance

Beginning a new marriage is about change.  We change the way we live, often the place where we live, and our standard of living tends to escalate.  Life insurance can help cover these changes should one spouse die prematurely.  It is comforting to be assured that in the event of your death, your spouse will not be faced with the daunting task of paying off debts and expensive funeral costs.

We can assist you in determining how much coverage you require.  Such an amount would be based on your monthly debts, future obligations, inflation, and other factors.  A common rule of thumb is to carry life insurance at least equal to 10 times your income.  This simple rule will not work for everyone, though.  For example, consider the impact of your future financial obligations if you have a disabled child.

If you bring existing life insurance into a new marriage, it is essential to remember to rename the beneficiary.  If your employer offers life insurance coverage, this alone may not be sufficient to meet your family’s needs.

Disability Insurance

Many young couples will purchase a new home at the beginning of a marriage resulting in a further monthly obligation to the bank.  Imagine the enormous financial burden should one of the spouses get injured or suffer from a long-term illness that prevents them from working.  Disabilities are far more likely, statistically, than premature death.  Disability insurance will help cover the disabled spouse’s income and newly acquired monthly expenses should something unfortunate happen.  Such coverage is essential if the couple relies on one spouse’s income to meet their financial needs.

Health Insurance

Sometimes it is more cost-efficient to have health insurance with one company.  If both spouses have separate coverage through employers, examine this option to see if your premium costs are reduced.  If you are looking ahead to having a family, check to ensure prenatal costs are covered.

Homeowners and Automobile Insurance

As with health insurance, auto insurance premiums may be reduced if one company insures both spouses.  You will likely save additional premium dollars if you add your property insurance with the same carrier.    It is equally important to insure your newly acquired possessions with renter’s insurance if you rent a property.

Start your new marriage the way you want to finish, intact financially and covering all the angles.