Have you ever heard of the old saying, “When it rains it pours?” Well, if you’re a newlywed, chances are pretty good that the changes feel like they’re pouring down. Along with the glow of marital bliss, you’re also facing lots of decisions together for the first time. Sometimes it’s hard to know what you need to focus on first and what decisions you should make. Having a solid plan together can help create a foundation of financial success throughout your marriage. So, where should you start? We’re glad you asked! Check out these top five tips for creating a strong financial foundation!
1-) Get Life Insurance. No one wants to think about losing a loved one. Especially when you’ve just found them and tied the knot. However, planning ahead ensures that you are able to protect and provide for your spouse (and future children if applicable). Getting a Life Insurance policy is not for you, it’s for your spouse. When you are young and healthy, your rates will be the lowest they will ever be. Getting a Life policy when you are young not only provides options for lower premiums, it also establishes a history of insurability which will help keep your costs lower and your policy options open as you age. Before you meet with your Life Insurance Advisor, be sure to talk with your new spouse about topics such as what you want the Life Insurance policy to cover (i.e.: Student loans? Mortgage? Debt?), what your monthly budget is for a policy, and any questions that you may have that your Life Insurance Advisor can help with.
2-) Get higher liability protection. Every newlywed couple should carry a higher liability policy, also known as an “Umbrella Policy” or a “PUL”. The most common increment of coverage for a PUL is $1 million, although other levels are available that you can discuss with your agent if needed. An Umbrella policy covers excess liability over your home and auto policies. This protects you from excess liability exposures to you and your new family if you are sued. For example, if you cause a car wreck and injure other drivers, you could easily be facing a law suit. If you have an Umbrella policy, when your limits of liability are exhausted on your auto policy, you would have higher coverage (up to the limits of your policy) to protect you, pay for legal fees, etc. This not only provides more protection for your new family, it also helps protect your savings, assets, and your financial future. If you were faced with a law suit for a million dollars (or more)…could you cover that on your own? Would your inability to pay for legal fees put your savings and your home or other assets at risk? The purpose of insurance is to protect against unforeseen events that you cannot cover on your own. Liability exposures pose a huge risk to your financial future if you don’t have a plan in place to manage this risk. An Umbrella policy is a very easy and inexpensive way to help protect your assets, your savings, and your financial future.
3-) Merge your auto policies. Many newlywed couples remain on their parent’s auto policies thinking that it saves money. However, did you know that by merging your auto coverage onto a new policy as a married couple….you could actually save money? Always remember to update your parents once you are off of their policy and on your own so that they can remove you and cut down on their insurance costs as well. Be sure to ask your insurance advisor about Alumni or affiliate discounts on your auto policy as these can often save you money as well.
4-) Insure your rings. Whether your rings are family heirlooms, custom designed, or classically modern….you want to have them covered. Many newlyweds forego getting insurance on their rings because they are worried about the cost for a jewelry policy. Honestly? It’s really not expensive when you add the policy onto your home or renter’s policy. And it’s a LOT cheaper than replacing a ring. While you cannot replace the memories associated with your new bling, you can be financially compensated. Also, if you are making payments on your ring, those payments don’t stop just because your ring is gone. Having an insurance policy on your ring can help provide funding to pay off your debt for your jewelry as well. Adding a jewelry policy to your home or renter’s policy is easy and inexpensive. Be sure to ask your insurance advisor to get this set up for you.
5-) Re-assess your health insurance options. Getting married creates what is called a “qualifying event” for your health insurance. This means that you are able to re-assess your health insurance without waiting for the next health insurance enrollment period. Getting on a family plan can save you more money than having separate plans. Or, in some cases, you may be better off having separate plans but re-assessing your coverages to better accommodate your new family’s needs. There is a limited window of time after you get married that you are able to re-assess your health insurance needs. Be sure to meet with a health insurance advisor as soon as possible after tying the knot to make sure that you get set up on a health plan that meets your needs and optimizes your savings.
Wishing You Much Success!
Kelley Carter, CPIA
The Choice Insurance Agency
The Choice Insurance Agency’s mission is to help you get from where you are to where you want to be financially by planning, achieving your plan and protecting your plan from unexpected events. In the process, our goal is to deliver insurance services in a manner that exceeds your expectations. See what The Choice Insurance Agency can do for you today. Give us a call at 757-416-5100 to speak with one of the licensed, professional members of our team or request a contact here. The Choice Insurance Agency. We’re on YOUR side. 757-416-5100 .