6 insurance mistakes people make when getting married
There's no better time to review your insurance needs than after you get married — you may be able to save a nice chunk of change. Here are some common insurance mistakes people make after getting married.
- Buying too much or too little life insurance to cover your new family. If you have people who depend on your income, you'll want to make sure they're provided for if you die. Having trouble figuring out how much life insurance you need? Use Insure.com's life insurance needs estimator tool.
- Depending solely on group life insurance available at work. Group life insurance amounts can be adequate if you're single, but they are often inadequate to cover a family's needs and aren't portable if you leave your job. Lock in your life insurance by buying your own policy.
- Having the wrong beneficiaries named on existing policies. Is your first spouse still named as the beneficiary on your life insurance? Remember to update these policies as needed.
- Not getting all available insurance discounts. Do you and your new spouse have car insurance policies through different insurance companies? You can likely save money by moving all policies to the same insurer, making you eligible for a multivehicle discount and, if you have home or renters insurance though the same company, a multiline discount.
- Not understanding coordination of health insurance benefits. If you have health insurance but are also insured under your spouse's plan, you'll want to understand the "coordination of benefits" rules. These rules decide which plan will pay, and for what, when you file a claim. It often doesn't make financial sense for each spouse to pay for a separate group health insurance plan. Find out which plan is most cost-effective for your anticipated medical needs and switch at open-enrollment time. If you've just gotten married, you can add your spouse right away.
- Assuming your home insurance fully covers your engagement and wedding rings. Depending on the insurance company, your home insurance policy likely has a limit of 1,500 for jewelry and doesn't cover rings that are simply lost. Jewelry is covered by insurance if it's lost due to a specified "perils" such as fire or theft. If your ring is worth more than $1,500 (and most care) and you want it fully insured, consider purchasing an add-on to your home insurance policy that will cover your jewelry on an "all-risk" basis and pay out a much higher amount. For more, read about insuring your sweetheart's diamond.