Marriage is one of the most significant events in anyone's life. It's also one of the most important times to review your insurance coverage and make adjustments to meet your new financial obligations.
| Make sure your spouse won't be burdened by your death. |
The first thing to consider is life insurance.
If you have debts, life insurance can help protect your spouse
financially when you die. This is crucial if you buy a house together
or are considering having children soon.
If
both you and your spouse have employer-sponsored health insurance,
which plan will be best for both of you? Open enrollment periods
generally come only once a year, but most employers will allow you to
add your new spouse to your group health plan immediately following
your wedding. It's important to compare the benefits and costs of each
of your health plans to find out which works best for you.
| You probably have at least one valuable possession that you should get insured — the engagement ring. |
There are two valuables that are unique to married couples: engagement and wedding rings.
Homeowners
or renters insurance protects the physical structure of your home and
your possessions, but a standard policy might not provide sufficient
protection for expensive jewelry. The dollar limit for theft or loss of
jewelry is generally low. The maximum reimbursement for a lost diamond
or other precious jewelry is generally between $1,000 and $5,000, and
the policy's deductible applies to all claims.
Talk with
your insurance company or agent about buying additional coverage for
jewelry. Your agent or insurance company can also determine if any of
your other possessions require special coverage.
Find out
whether your home or renters policy provides "actual cash value" or
"replacement cost coverage." Policies that cover the actual cash value
of your possessions will pay you only what the items were worth at the
time they were damaged or stolen, and thus factor in depreciation. For
example, the five-year-old television you bought for $300 will be worth
significantly less today.
As the name implies,
replacement cost coverage will provide you enough money to replace an
item, regardless of how much the item was worth when it was stolen or
damaged. That's why replacement cost coverage is more expensive.
One
benefit to marriage is that many insurance companies will discount auto
rates for married drivers. It's important to inform your agent or
insurance company as soon as possible about your marriage so you can
receive any discounts right away. And if your car is now garaged in a
new location, your auto insurer needs to know.
Also check to see if you qualify for other discounts on your auto insurance, such as those offered for insuring multiple cars.
|
