You just got married, now what? After marriage, a name change isn’t necessary anymore. Getting your financials in order may create a stronger bond with your life partner. Wills, credit cards, bank accounts, and making sure you have the right insurance is smart thinking.
As you begin your journey as a couple, your assets will become shared, and while you hope your life together will be long and happy, you should always be prepared for unexpected circumstances.
Are your insurance policies as simple as adding your partners’ name to it? What other steps you should consider? When thinking about life, house, and car insurance, there are a lot of elements to consider before you shop around.
Life Insurance After Marriage
A good life insurance policy will provide you with the peace of mind that, should something happen to you or your partner, your financial needs will be tended to.
If this is the first time that you or your partner is going to have life insurance, the process can be as simple as comparing term life insurance vs. whole life insurance to find the best one for your needs and budget and naming one-another as beneficiaries in the policy.
If, however, you and your partner already have existing policies, whether they are individual or through a corporate insurance plan, then there are a few possibilities you should consider.
For example, your partner may be covered by a life insurance policy through their workplace, while you pay into your own individual plan. It’s possible that the workplace coverage will provide exceptional coverage for both you and your partner, and it could be worth having that policy cover both of you. This would allow you to save the cost of having individual plans, while still maintaining an appropriate amount of coverage.
However, the workplace is a volatile environment these days, and if you’re both covered under one corporate life insurance policy, and the individual who owns the policy is let go, both of you would find yourselves without coverage.
So, it might be beneficial for you and your partner to consider opting-out of the corporate life insurance plan, and changing the individual coverage to a Joint First-To-Die (or JFTD) Term Life Insurance policy.
A JFTD policy provides both partners with the same coverage and pays out after the first partner dies. This can be a more affordable way of covering a couple than having two individual policies but can be less flexible in the event of a separation or divorce. Additionally, when one of the partners dies, the second partner will need to find a new, individual life insurance policy for their continued coverage.
Be aware that when considering a JFTD policy, the coverage applies to a “combined age” calculation of you and your partner. Thus, if you and your partner are both in your 30s, but you’re given a combined age of 40, then you will be paying premiums based on that higher age.
Because the JFTD is a term policy, when it comes time to renew, your premiums would be at a higher rate than you would otherwise be paying under individual coverage. If a new policy is right for you, you can compare life insurance quotes in order to help you find the cheapest life insurance in Canada.
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Home Insurance After Marriage
When you and your partner choose to live together, there are a few things you need to do to ensure both of your possessions are covered under your home insurance policy.
While there’s the immediate benefit of eliminating one of your personal home insurance policies, you need to ensure that the residence you will be living in covers both of your belongings. If you will be moving into your partner’s rented space, there’s the possibility that the tenant’s insurance will not cover both of your belongings. It’s important to check the policy first to see if any changes need to be made to it.
If you are moving into a home that your partner owns, you will be covered under their policy for liability and some of your home’s contents. That said, it is essential that you let the home insurance provider know about the new living arrangement, as they need to be aware that an individual is being added to the policy. Similarly, you may need to increase the coverage that your policy provides to take into account both you and your partner’s possessions. By comparing home insurance policies, you can ensure that you’re getting the most affordable home insurance for your needs.
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Does home insurance cover your wedding rings?
Whether or not items such as jewellery are covered by your insurance depends on your policy. Usually, there will be some kind of coverage, but this may not be enough to insure the full value of the rings. After reviewing your policy, you might want to consider taking out a jewellery endorsement at a slightly higher premium to ensure you have the coverage you require.
Car Insurance After Marriage
If you and your partner are going to be sharing an automobile, you will need to list one of you as an additional driver under the auto insurance policy.
It should be noted that if the additional driver has a poor driving record, there’s the possibility that the policy rate will increase.
If both you and your partner own a car, you may be able to save money on your car insurance rates by combining your policies and paying it as a couple. This is a possibility as some insurers offer multi-vehicle coverage. It’s worth it to compare car insurance to find out what different companies offer, and what is the best coverage for you and your needs.
Before cancelling any policies, however, it’s a good idea to see if there are any financial penalties involved with such an action.
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Bundling Insurance After The Wedding
There’s a strong chance that you and your partner are insured under different companies when you first take the leap into marriage. One of you may own a car, and the other may own a house – each of which is insured under a different provider.
As you merge your lives as a couple, it’s worth reviewing all your insurance policies to see if a bundled policy would be more affordable to you. Bundled policies often offer a discounted rate, and your life will be made easier by only having to make payments to one company.
Getting married and starting a new life with your loved one is an exciting time. As you prepare to take the plunge, be sure that all your insurance needs are met by your policy so you can start your life together with the security of knowing that you’re protected in the event of the unforeseen.
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Five Quick Tips On Insurance After The Wedding
- Name your partner as your beneficiary
- Bundle insurance plans to maximize savings
- Look into both your employer’s insurance policies: one plan might be sufficient for both of you.
- If combining insurance policies, ensure that the coverage provided is sufficient for both of your belongings. You might want to consider increasing your coverage.
- Compare insurance policies offered by different providers to see if you and your partner can save money.