Having Insurance When You Get Married

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That big dayhas finally arrived. You are marrying the love of your life and ready topronounce those vows: to have and to hold each other in sickness and in healthtil death do us part.

Yet, how many couplesthink about having enough insurance while planning their wedding and includingthe right kind and the right amount of insurance that will help protect theirfinances from lawsuits and accidents?

Following are some steps to take as a married couple:

If you and your spousecount on each other’s earnings to support your standard of living, you bothneed life insurance that will keep the other financially afloat if somethinghappens. A life insurance payment can pay for funeral costs, rent or mortgage,household bills, and debts. It can also help pay for childcare and college forchildren and can leave a legacy for those you love.

Your employer might offersupplemental life insurance as an employee benefit. However, the amount ofcoverage you get through a group insurance plan might not be enough. Inaddition, you may not keep that coverage if you leave the job. That is why youshould get an individual life insurance policy.

There are two main typesof life insurance: term and permanent. Term life insurance lasts for a certainnumber of years, such as 10, 15, 20, or 30. Permanent life insurance lasts for alifetime and, therefore, is more expensive than term life.

A term life insurancepolicy can be ideal for a young couple because it is affordable, says SharifMuhammad, a licensed insurance agent, Certified Financial Planner, and owner ofUnlimited Financial Services. The policy’s term should be long enough to coverthe needs of children—such as the years until they graduate college. Search fora policy that offers the option to convert to permanent coverage “so you havethe option if you want to maintain the policy after the term runs its course,”states Muhammad.

You can shop for lifeinsurance policies online, including options for getting instant lifeinsurance. However, consider working with an independent insurance agent whocan help you determine how much coverage you need and will shop around for youto find the best policy for your needs.

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How to Save on Life Insurance

Life insurance is a lotcheaper than you think. A survey by LIMRA and Life Happens found that half ofthe respondents thought a $250,000 term life policy for a healthy 30-year-oldwould cost $500 or more a year. However, the average cost of such a policy isonly about $160 a year, or about $13 a month. Your age, health, policy type,and amount of coverage you want will affect the price you pay for lifeinsurance.

“The younger andhealthier you are when you get coverage, the more affordable it is,” says AmyShepard, a Certified Financial Planner with Sensible Money. She suggests it canbe worth it to pay a little more for a policy with a bigger benefit now inorder to ensure the payout will be enough to cover any future expenses youmight have, such as a house with a mortgage or children. You could also buymore life insurance in the future, but you will pay rates based on your olderage and any health problems that develop in the interim.

Why You Need Disability Insurance

According to the SocialSecurity Administration, over one in four of today’s 20-year-olds will becomedisabled before reaching age 67. If you become part of that statistic andcannot work because of a disability, you and your spouse would likely feel thefinancial pinch from the loss of your income.

Workers’ compensationinsurance will pay only if the injury or illness is work-related. It may bechallenging to qualify for Social Security disability benefits, and the averagepayout is just $1,236 a month. That is why it is important to have disabilityinsurance to fill the gap. Think of it as a protection for your paycheckbecause it will replace a percentage of your income if an illness or injuryleaves you unable to work, temporarily or permanently. You can use disabilityinsurance to replace income during maternity leave, Shepard says.

How to Get Disability Insurance

If employed, you can getdisability coverage through a group plan at work. A survey by the Society forHuman Resource Management found that 71% of employers offer long-termdisability insurance and 61% offer short-term disability insurance. Typically,group disability coverage will replace up to 60% of income, Shepard says. Thedrawback to relying on group coverage is that you cannot keep it if you leaveyour job. “I think it’s always a great idea to take advantage of group coverageif you have it and supplement it with a private policy,” Shepard says. Thatway, you will still have coverage regardless of your employment situation.

If you already have groupdisability insurance, the amount of individual coverage you can get is limited.Shepard recommends working with an independent insurance agent to coordinateindividual coverage with any group coverage.

How to Save Money on Disability Insurance

Getting disabilityinsurance through a group plan at work is usually the most affordable optionand the easiest. If your employer has a group disability insurance plan offeredto all employees at no cost, you will automatically qualify for coveragewithout having to answer questions about your health or having to take anymedical tests, according to Life Happens.

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Individual disabilityinsurance can be more expensive because your age and health can affect thecost. You can save money by getting disability insurance while you are youngand healthy, Muhammad says. 

You also can keep downthe cost of disability insurance by opting for long-term coverage rather thanshort-term coverage, Shepard says. It is more important to have a policy thatwill protect you for a significant period, and you can rely on an emergencyfund (if you have one) to replace your income if you have a short-termdisability.

See if any professionalorganizations you might belong to offer a group policy for long-term disabilityinsurance. As long as you maintain your membership, group coverage willprobably be more affordable than individual coverage.

Health Insurance - Coordinate Coverage with Your Spouse

You can typically changeyour health insurance plan through work (for group coverage) or through thehealth insurance marketplace (for individual coverage) once a year during openenrollment. However, marriage is one of the life events that allow you tochange your coverage outside of open enrollment.

If you or your spousedoes not already have health insurance, you may get coverage now through one orthe other’s plan. If you both have coverage, it’s a good time to review yourplans to see if you should maintain separate policies or get joint coverage,says DeDe Jones, a Certified Financial Planner and managing director ofInnovative Financial.

You might find that, forexample, you can get better, more affordable coverage by switching to yourspouse’s health insurance plan.

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How to Save on Health Insurance

A common way to lower thecost of health insurance is to opt for a plan with a high deductible. Premiumson high-deductible plans are lower because you have to pay more out of pocketuntil coverage kicks in. This type of plan can make sense for healthy, youngadults who do not take many or any prescription drugs and do not requirefrequent trips to the doctor. However, you should not bet on your good healthto help you avoid paying for the deductible. If your employer offers a healthsavings account along with a high-deductible health plan, set aside money inthat account to cover your deductible and other out-of-pocket medical costs.

If you cannot afford tomax out your health savings account or cover the cost of your deductible, ahigh-deductible plan might not be the best way for you to save money on healthinsurance, Muhammad says.

Alert Your Auto Insurer to Your New Status

Let your auto insuranceagent know that you have gotten married. Other household members are requiredto be on your policy if they are licensed drivers, even if they do not driveyour car regularly.

If you and your spouseeach have a car and coverage through separate insurers, it usually makes senseto choose one company and buy one policy. You will get a discount for insuringmore than one vehicle, plus additional savings if you also buy your homeowner’sor renter’s insurance from that company.

How to Save on Auto Insurance

Even if your insureroffers a discount for insuring two vehicles, it can pay to shop around forlower rates with other insurers. Muhammad says that he and his wife reshoptheir insurance every two years to ensure they get the best deal. Ifyou are happy with your current insurer, ask about other auto insurancediscounts that you might qualify for. For example, you might save money bypaying your bill annually rather than monthly.


To soften the blow ofmaking a lump-sum car insurance payment, Shepard recommends setting aside moneyeach month in a savings account to have enough to pay the bill when it’s due.Also, ask about increasing your deductible to lower your premium.

Photo by JuniorKarrick DJIKOUNOU Homeowners' or Renters' Insurance 

Make sure you have enoughcoverage. Now that you are married, you might have more belongings in yourhousehold. So make sure you have enough homeowners or renters coverage toreplace those belongings in case of a major disaster like a fire, tornado, orhurricane.

To figure out how muchcoverage you need, start by doing a home inventory. Go room to room and make alist of your belongings and, if possible, their estimated cost. An easy way todo an inventory is to take photos or videos of your entire home, including theinside of closets, drawers, and storage spaces. There are also home inventorymobile apps such as MyStuff and Nest Egg.

If you have an “actualcash value” policy, the payout you would get would cover the cost of yourbelongings minus depreciation of their current value. It is better to get apolicy with replacement cost coverage. This will cost more, but it will cover replacing your items.

If you have expensiveitems such as wedding rings, artwork, or collectibles, you might need to add afloater or rider to your policy to provide additional coverage for those items.Call your insurance agent to discuss your coverage needs now that you aremarried.

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How to Save on Homeowners Insurance

Shop around to find thebest homeowners insurance by getting quotes from at least three insurers, orwork with an independent agent who can do the shopping for you.

Ask about multi-policydiscounts. You can save money if you have more than one type of policy, such asa homeowner and auto insurance, with an insurer. You can lower your premium byraising your deductible. Adding safety features such as an alarm system andsmoke alarms can lead to discounts.

Keep in mind as you lookfor ways to save money on all of your insurance policies that it is importantnot to skimp on coverage just to save money.

“Shorting yourself oninsurance is a fool’s endeavor,” Jones says. Paying for good insurance can seemunnecessary if you never make a claim. However, insurance is for the disastersin life, so you do not have to gut your savings or lose your home or vehiclewithout a financial safety net. 


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Published on April 23, 2023 21:00
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