There is a long list of things to consider when exchanging marriage vows. Many things will change, including names, property ownership and living arrangements.
After deciding where to live, what house to buy, how many children to have and when to have them, couples rarely discuss their insurance policies. However, merging lives also means merging insurance needs and coverage. There are a number of ways in which merging lives can impact insurance coverage. Marital assets need to be insured and if you plan to have children, health care plans must include prenatal care and coverage for newborns. Automobile policies may also change when there is an addresses change.
Here are a few things that couples can do to merge their insurance needs effectively:
- Make a list of all existing insurance policies to determine which ones will be kept and which ones will be cancelled. Make certain that both spouses’ names are on all new insurance policies.
- Examine life insurance coverage. If there are no existing policies, coverage should be secured. Beneficiaries should be changed on existing policies and, in some cases, the actual coverage broadened.
- Determine which spouse has the best health care coverage and add the other spouse. If you do cancel one spouse’s coverage, ask the employer if there is a reimbursement plan for unused coverage.
- Determine if the current homeowner’s or renter’s insurance policy is strong enough to protect the valuables of both spouses, particularly wedding rings and expensive wedding gifts.
Remember that each spouse has to be covered in the event of a catastrophe. You may want to consider securing disability insurance, long term care or an umbrella policy after the marriage.
By Darryl James