How Does Marriage Affect Finances and Insurance?

Marital status doesn't affect your eligibility for car insurance, but it can affect your rates. Being married makes you statistically less likely to file a ... RequestaQuote 636-583-0800 Menu MarriageandInsurance HomeMarriageandInsurance Whenfriendsandfamilyfindoutyou andyourpartnerhavegotten engaged,you’lllikelyhearlotsofcongratulations, alongwithplentyofmaritaladviceabout sharingeverything.Whatyoumaynothearisanythingaboutinsurance orcombiningfinances. Insurance andsharedfinances likely aren’t thefirstthings onyourmindasyou’reregisteringforgifts,planningaweddingandgoingonyourhoneymoon. However,insurance andfinancesare essential topics toconsiderwhenyouandyourbelovedtietheknot. Willyoubecombiningyourassetsorkeepingthemseparate?Shouldyouaddyourspousetoyourinsurancepoliciesorpurchasenewpolicies?Wehavecompiledthisguidetonavigatingachangingfinancialandinsurancesituationwithyourspouseandfamily. HowDoesMarriageAffectYourFinances? Gettingmarriedaffectsyourlifeinmanyways.It’sthestartofanewchapterandshouldbefullofexcitement.Itcanalsoinvolveagooddealofadjustmentasyoulearnhowtobecomepartnersinthepracticalpartsoflifeaswellasthefun,romanticones.Oneofthesepracticalareasisyourmarriagefinances. Thereisnoone-size-fits-allanswertohowmarriageaffectsyourfinancessinceitdependsonhowyourandyourspouse’sfinanceslookbeforemarriageandwhatsortsoffinancialdecisionsyouplantomaketogether.Nomatterwhat,though,therewillalwaysbesomeadjustinginvolvedwhenyoujoinyourandyourspouse’sfinances. Thisadjustmentcanbetrickytonavigate,butonceyoufigureitout,youcanenjoysomefinancialbenefitstomarriage.InaPewResearchstudy, 28%ofpeoplecitedfinancialstability asaveryimportantreasontogetmarried.Ifyouwantfinancialstabilitytobeapartofyourmaritalbliss,thenyoushouldstartearlydiscussingyourfinances. FinancialandInsuranceItemstoTakeCareofPost-Wedding Ifyougotmarriedrecently,nowisthetimetocheckofftheitemsonthe post-wedding financialchecklistbelow. 1. WriteorReviseYourWill Regardlessofwhetheryouhavechildrenorassets,youmaywanttowriteawill.Ifyoualreadyhaveawill,youmaywanttoreviseit.Willsareoneaspectofmarriageyoumaywanttokeepseparate.Dependingonwhereyoulive,yourassetsandpropertymaynotreverttoyourspouseautomaticallywhenyoudie.Further,ifyoudon’thaveawill,yourestatemaygothroughprobate,whichisanexpensiveandtime-consumingprocess. Ifyouandyourspousehavechildren,youmaywanttonameaguardianfortheminyourwillsifyoubothpassawaysimultaneously.Afteryouhavewrittenawill,revisitorupdateitaftersignificantlifechangeslikeamarriage,birthordivorce,oronceeverydecadeifnomajorlifechangeshaveoccurred. 2. CombineFinancialAssetsWithYourSpouseIfDesired Combiningfinancialassetswithaspouseisanothercommonstepmostnewlywedshaveontheirfinancialchecklist.Ifyouandyourspousecurrentlyhaveseparatefinancialassets,youmaywanttodiscusstheadvantagesanddisadvantagesofcombiningthem versuskeepingthemseparate. Formanymarriedcouples,combiningassetswillmakeitsimplertomanageandaccesstheseassets.Othercouples,however,maychoosetokeepsomeorallaccountsseparate,especiallyifonespousehascredit,taxorlegalproblems.Youmaychoosetokeepsomeaccountsseparate,butopenajointbankaccountfromwhichyoucanpayyourjointexpenseslikeyourmortgage,groceriesandutilities. 3. ExplorePowerofAttorneyandMedicalDirectives Whenyouwriteorreviseyourwill,youmaywanttocreateapowerofattorneyandmedicaldirectiveatthesametime. Ifyougiveyourspousepowerofattorney,theywillbeabletomakedecisionsonyourbehalfifyoubecomeincapacitatedduetoadiseaseorinjuryandcannotspeakforyourself. Additionally,amedicaldirectiveisessentiallyapowerofattorney,butspecificallyforhealthcare.Amedicaldirectivesetsyourpreferencesinspecificmedicalsituationsandnamesyourappointedpersontomakechoicesaboutyourmedicalcare.Aswithawill,youmaywanttoupdatethesedocumentsaftermajorlifechangesoronceeverydecade. 4. DiscussRetirementAccounts Sinceretirementaccountsareindividualholdings,youandyourspouseshoulddiscusshowtomaximizeretirementsavings.Ifyoubothwork,youcancontributethemaximumpossibleamountstoa401(k)orIRA.Ifonespousedoesn’twork,theworkingspousecanopenaspousalIRA.WithaspousalIRA,theworkingspousefundstheaccount,butthefundsandaccountbelongtotheotherpartner. 5. ReviewandCombineHealthInsurance Ifbothyouandyourspousehavehealthinsurancethroughwork,youmaywanttocompareplansanddeterminewhichoneofyouhasthebettercoverage,alongwithhowmuchitmaycosttoaddyourspousetoyourhealthinsuranceplan. Ifyouplantostartafamilyinthenextfewyears,youmayalsowanttohaveahealthinsuranceplanthatincludesgoodmaternitycoverage.Manyhealthinsuranceproviderslackmaternitybenefits,soifoneofyouhasthiscoverageandtheotherdoesn’t,youmaywanttochoosetheplanthatdoes. 6. ReviewandCombineLifeInsuranceWhenMarried Ifyouoryourspousedidn’talreadyhave lifeinsurance beforegettingmarried,nowmaybeanidealtimetopurchasepolicies.Theyoungeryouarewhenyoubuylifeinsurance,thelessexpensiveitwillbe,asyoulockinrateswhenyougetyourpolicy.Termlifeinsurancetendstobethecheaperoptionoverwholelifeinsurance,butwholelifeinsurancecanbethebetteroptiondependingonyourfinancialsituationandage. 7. ReviewandCombineAutoInsuranceWhenMarried Next,youmaywanttoreviewyour autoinsurance policiesandpossiblypurchaseasinglepolicyforbothyouandyourspouse. Onceyou’remarriedandlivingtogether,youandyourspousearelikelytodriveeachother’svehicles.Thismeansyouoryourspousemaywanttoaddtheothertothepolicyasapermitteddriver.Aslongasyouandyourspousehavegooddrivingrecords,youmaynotseeanincreaseinyourinsurancerate. Youmaywanttodeterminewhichoneofyouhasthemoreaffordableproviderorplanandwhatitwouldcosttoaddaspouseunderanumbrellaplan.Anumbrellaplanisusuallylessexpensivethanpayingfortwoseparateautoinsurancepolicies,soyoumaywanttoconsiderthisoptionifitsavesyoumoney. Ifyourspousehasapoordrivingrecordorateenagedriver,youmayseeyourinsurancerategoup.Ifyouaddateentoyourpolicy,youmaywanttorestricttheirdrivingprivilegestoyourleastvaluablevehicle. 8. ReviewandCombineHomeInsuranceWhenMarried Ifyouhave homeinsurance,speakwithyourinsuranceagentaboutaddingyourspousetoyourpolicy.Ifyouaremoving,makesuretoswitchyourcoveragetoyournewhome.Ifyoudon’thavehomeinsurance,nowisthetimetopurchaseapolicy. 9.ObtainDisabilityInsurance Evenifyoubelievelifeinsuranceisn’tcurrentlynecessaryforyouandyourspouse,theoddsofyouoryourspousebecomingseriouslydisabledaremuchhigherthandeath.Thismeansyoumaywanttoobtaindisabilityinsurance. Thedisabledspousewouldnotbeabletogenerateincome,yettheirmedicalcostscouldbeincrediblyexpensive.Ifyouandyourspousedon’thavedisabilitycoveragefromyouremployers,youmaywanttopurchasedisabilityinsuranceyourself. Shortlyafteryoutietheknot,takealookattheinsuranceyoualreadyhaveinplaceandwhatpoliciesyoumaywanttobuy.Beingadequatelyinsuredwillprotectyouandyourspouseintheyearstocomeasyoupursueyourgoalsandbuildalifetogether. 10. UpdateYourTaxes You’llalsoneedtorevisitthetopicoftaxeswhenyougetmarried.Whenitcomestimetofilefortheyearinwhichyou got married,you’llneedtodeterminewhetheritmakesmoresensetofilejointlyorseparately.Formostcouples,filingjointlyisfinanciallybeneficial,butthisisn’talwaysthecase. 11.AddYourSpousetoYourPropertyTitle Ifyouandyourspousearecombiningproperty,suchashomesorcars,andyouwanttoaddyourspousetoyourpropertytitle,followtherequirementssetbyyourstatetodoso.Whiletheremaybeafeetoaddyourspousetothepropertytitle,itisgenerallyveryaffordable. 12.ManageYourCredit Reviewingyourfinancesandcreditreportsisanessentialstepinsettingyouandyourspouseupformartialharmonyandfinancialsuccess.Youcanrequestfreecreditreports,andyoumaybeabletomonitoryourscorethroughwebsiteslikeCreditKarmaoryourcreditcardprovider. Ifyounoticeanyissueswhenreviewingyourcreditreport,disputeanyincorrectinformation.Thenmakegoalsforimprovingyourscoreifnecessary. 13.CompleteNameChanges Ifyouoryourspouseplantochangeyourlastnameoryou’rebothchangingyourlastnames,youmayneedacopyofthemarriagecertificate.ToobtainanewSocialSecuritycard,takethemarriagecertificatetothelocalSocialSecurityoffice. Youcanrequestanamechangeandgetanewdriver’slicensewhenyouhaveanewSocialSecuritycard.Requestthenamechangeoncreditcards,bankaccountsandyourotheraccounts. 14.CreateaDebtPayoffPlan Youandyourspousemaybeenteringyourmarriagewithdebt,suchascreditcarddebt,studentloans,carloansormortgages.Ifoneorbothofyouhasdebt,createaplantopayoffthisdebt. Discussingdebtassoonaspossiblegivesyouachancetoformaplanandensurethetopicislesspainfulinthefuture.Financesareasignificantaspectofamarriage,soyouwanttomakesureyouandyourspouseareonthesamepage. Inyourdebtpayoffplan,includestrategiesforreducingexpensesandincreasingyourincome,bothofwhichcanhelpyouputmoremoneytowarddebtpayoff.Asacouple,youcansetgoalsforhowmuchyouwanttopayoffinacertaintimeframe.Additionally,youmaywanttolookintodebtconsolidationoptions. Forexample,youmaywanttopayoffyourhighestinterestdebtsfirst.Ifyouhaveahigh-interestcreditcard,yourfirstgoalmaybetopayoffthebalanceinfourmonths.Thenyournextdebtpayoffgoalmaybepayingoffyourstudentloansinthreeyears. 15.DevelopaBudget Creatingabudgetiscrucialtosetyouandyourspouseupforfinancialsuccessinyourmarriage.Youcanuseaspendingtrackertomanagehowmuchyou’respendingversushowmuchyou’reearning.Youmaywanttodothisforafewmonthstohelpyousetarealisticbudget. Atrackingtoolcanshowyouwhereyou’respendingtoomuchmoney,soyoucanfindplacestocutback.Youcanalsodeterminehowmuchyouspendmonthlyonneedsversuswants,thencreateabudgetthatisrealisticforyourcurrentlifestyleandhelpsyoucreatethelifeyouwantinthefuture. 16.ManageYourCreditCards Spendingcancausefrictioninamarriage,soit’simportanttohaveanopen,honestdiscussionaboutavoidingdebtandwhencreditcardsshouldandshouldn’tbeused. Youoryourspousemaybebetterpositionedtomanagethecreditcardaccounts.Inthiscase,youmaywanttoconsideraddingyourspouseasanauthorizeduseronyouraccountssotheycanmanagetheaccountsandmakepayments.Ifyouoryourspousehavecreditcarddebt,revisitthesubjectperiodicallytoavoidunexpectedcreditcardbills. 17.DiscussYourCareerGoals Dependingonwhatstageyou’reatinyourcareer,youmaynotbeentirelysureaboutyouridealcareerpath.Oryoumaybeunhappyinyourcurrentcareerandarealreadylookingtomakeamajorcareershift.Discusswithyourspousewhatyourcurrentandfuturegoalsareforyourcareer,particularlybecausethesegoalscouldrequireyouoryourspousetocompromise. 18.DiscussYourLifeGoals Whileyouarediscussingyourcareerandfinancialgoals,youmaywanttodiscussyourlifegoalsaswell.Whatareyoulookingforinlife?Whatwouldyouliketoaccomplishonyourownandwithyourspouse?Whatcanyoudotoachievethesegoals? Talkingtoyourspouseaboutthelifegoalsyoubothhavecanensureyou’reonthesamepageandcanoffereachotherthesupportneededtohelpyoureachyourgoals. 19.RevisitYourGoals Remembertocheckinwithyourspouseregularlyaboutyourgoals,whetheryourgoalsareforsaving,debtpayoff,buildingcredit,reachingcareergoalsorachievinglifegoals.Agreeontimestorevisityourgoals. Forashort-termgoal,youmaywanttocheckinonceaweek.Forlonger-termgoals,youmaywanttocheckinonceamonth,everyfewmonthsorannually. 20.UpdateAllAccounts Finally,ensureyouupdateallyouraccountsafteryou’remarried.Ifyoumove,updateyourchangeofaddresswitheverycompanythatbillsyouregularly.Addyourspousetoanyleasesyouhaveandtoemergencycontactlistings.Updatethebeneficiarydeclarationsonyourinsurancepoliciesandretirementplantoincludeyourspouse,alongwithupdatingyoursafetydepositboxandbankaccountagreements. HowtoCombineFinancesAfterGettingMarried It’salwayssmarttositdownwithyourpartnerbeforeorjustafter getting married to gooveryournewlywedfinances. Belowisastep-by-stepguidetocombiningfinancesafterawedding. 1.OrganizeYourAccounts Thefirststepoffinancialplanningaftergettingmarriedisgettingorganized,soyouknowhowmuchyouandyourspousehaveandwheretheassetslie.Bothyouandyourspouseshouldmakethreelists. Assets: Inventorywhatyouown,suchasproperties,savingsaccounts,investmentaccountsandvehicles.Listwheretheseaccountsareandhowmuchyouhaveineach. Pointsfromloyaltyprograms: Bothofyoushouldlistanyloyaltyprogramsyouparticipatein.Theseallowyoutoaccumulatepointsyoucanredeemforperks,suchasprogramswithhotels,airlinesandcreditcardsthatyoucanusetogetfreeflightsorhotelstays.Listtheprogramsyouparticipateinandhowmanypointsyouhavewitheach. Liabilities: Youandyourspouseshouldalsomakelistsofwhatloansanddebtsyouhaveandhowmuchyouoweoneach. 2.EvaluateYourFinancesandInvestments Takestockofallyourassetsanddebts,soyoucandetermineyournetworth.Besidesretirementaccounts,investmentsyoumayowninclude: ETFs Bonds Stocks Commodities Mutualfunds Stockoptions Certificatesofdeposit Youandyourspouseshoulddiscussyourcurrentapproachestoinvestingandyourinvestmentgoals.Askyourfinancialinstitutionsiftheyofferajointaccountoptionandhowtoaddyourspouse’snametoyouraccount.Alternatively,youmaybeabletomakeyourspouseabeneficiary.Ifyoubothhavemultipleinvestmentaccounts,youmaywanttospeakwithafinancialadviserabouthowtobestmoveforward. 3.ChooseWhattoCombinevs.KeepSeparate Onceyoudeterminehowmuchyouandyourspousehaveandhowmuchbothofyouowe,thenextstepintheprocessisdecidingwhatfinancesyouwillbecombiningandwhatyouwillbekeepingseparate. Considertheseoptions. Combiningeverything: Inthiscase,youandyourspousewillcombineallyoursavings,checkingandnon-retirementinvestmentaccounts.Youtreatalldebtsandassetsasjointandshareequalresponsibility.Youwillalsousethesamedebitorcreditcardstocoveryourexpenses. Combiningsomeassetsandliabilitiesandkeepingothersseparate: Thinkyours,mineandours.Inthiscase,youmaychoosetohavejointsavingsandcheckingaccounts,butyoualsoeachhaveindividualcheckingaccountsandpossiblyasavingsaccount.Thisapproachishelpfulwhenbuyinggiftsforeachother,forexample.Ultimately,it’suptoyouandyourspousewhatyouwanttocombineandkeepseparate. Keepingeverythingseparate: Inthiscase,bothofyoutreatyourassetsanddebtsasindividualresponsibilities,butyoucoverhouseholdexpensestogether.You’lldeterminehowmuchyoueachwillputtowardjointcostslikegroceries,utilitiesandrent.You’lleachtransfermoneytoasharedcheckingaccount,whichyou’llusetopaybills. 4.OpenJointAccounts Next,openjointsavingsandcheckingaccounts.Manycouplesfirsttakethisstepwhenthey’rereadytodepositgiftmoneyfromtheirwedding.However,youmaywanttostartfinancialplanningwhenengagedorlivingtogethertobeginpracticingmoneymanagement. Perhapsthemostcommonpracticeformarriedcouplesisopeningtwojointaccounts,acheckingaccountandasavingsaccount.Bothyouandyourspousewilltransfermoneyintothesejointaccountsfromyourindividualaccounts.Followthetipsbelowforopeningjointaccounts. Searchfordeals: Bankssometimesrunpromotionsforthoselookingtoopenanewaccount,suchasacashbonuswhenyouopenanewaccountandmakeadeposit. Ensurethereisabranchnearbyifyouintendtomove: Evenifyoudoalmostallofyourbankingonline,youmaystillwantabranchnearbysoyoucanseekin-personhelporfinancialadvicewhennecessary. Avoidfees: Somebankschargecustomersamonthlyfeeforcheckingaccounts,soyoumaywanttochooseabankthatdoesn’thavethispractice,orfindabankthatwillwaivethefeeifyoumaintainabalanceaboveaspecificamount.Beforechoosingabank,askaboutfees. 5.CommunicateWithYourPartner Finally,whenyoucombineyourfinancesaftergettingmarried,it’sessentialtocommunicateopenlyandhonestlywithyourpartner. Worktogethertocreateabudgetthatleavesroomforcontributingtosavingseachmonth,and discussyourlong-termfinancialgoalssoyoucanworktowardthem. Setupregularcheck-instosittogetherandreviewyourfinances.Thesesessionscanbemonthly,biweeklyorweekly. HowDoesMarriageAffectYourInsurance? Inadditiontojoiningyourfinances,you’llalsowanttotalktoyourspouseaboutjoininginsurancepolicies.Withautoinsurance,you’llhavetheoptiontokeepseparatepolicies,thoughmostcoupleswillsavebysharingapolicy.Ifyouownahomewithyourspouse,you’llneedtoshareahomeownersinsurancepolicy.Gettingmarriedmayalsocauseyoutoconsidergettinglifeinsuranceforthefirsttime. We’regoingtodiscussindetailhowgettingmarriedaffectsthreetypesofinsurance—home,autoandlife. 1.HowDoesMarriageAffectHomeInsurance? Ifhomeiswheretheheartis,thenit’stheperfectplaceforyouandyourspousetoenjoymarriedlifetogether.Whetheryoualreadyownahomeorarepurchasingyourfirsthometogetherasacouple,therearesomeimportantthingsyoushouldknowregarding homeinsurance. IfOneorBothofYouAlreadyOwnsaHome Ifyouandyourspousearebothhomeownerswhenyoutietheknot,thenoneofyouislikelyplanningtosellyourhomesoyoucanmoveintogether.Sharingonemortgagepaymentandonehomeinsurancepremiumtogetherwillsaveyoubothmoney. Whenyouaresellingyourhome,makesureyoumaintainyourhomeinsurancecoverageuntilyouhaveofficiallyclosedonthesaleoftheproperty.Letyourinsurancecompanyknowatleast amonthbeforetheclosingdate,sotheycanpreparetoissueyouarefundforanypaymentsyouhavemadethatgobeyondthedayyouclose. Whenyoumoveintoyourspouse’shomeoryourspousemovesintoyourhome,you’llwanttomakesureyouarebothlistedontheinsurancepolicy.Callyourinsuranceprovidertomakesurebothofyournamesareincludedonthepolicy. You’llalsoneedtodeterminewhetherthelevelofcoverageyouoryourspousecurrentlyhasforpersonalpossessionsisstillenoughwhenyouaddinnewpossessions.Forexample,addingyourspouse’selectronicstothehouseholdmaymeritahigherdegreeofcoverage.Thegoodnewsisthatyournewmaritalstatusmayleadtoalowerpremiumrate. IfYouArePurchasingaHomeTogether Ifyou’repurchasingyourfirsthometogether,thenyou’llwanttobeginlookingintopurchasingahomeownersinsurancepolicyearlyonintheprocess.Thisisbecausemostmortgagelenderswillrequireyoutohaveapolicyinplacebeforeyoucancloseonthehome.Inmanycases,you’llbeexpectedto paythecomingyear’spremium upfrontsoitcanbeputintoescrow. Ifyoualreadyhaveanothertypeofinsurancepolicy,suchascarinsurance,fromacarrieryoutrust,youmaywanttoconsiderbundlingyourhomeownerspolicywiththisexistingpolicy.Bundlingpoliciescanhelpyousavemoney.It’salwaysagoodideatodoyourresearch,though,andlookintootherpossibleinsuranceproviders,especiallyifyou’renotextremelysatisfiedwithyourcurrentprovider. Thereisalottoconsider whenyou’rebuyingyourfirsthome.Takesometimetolearnaboutinsuranceaswellasotherimportantaspectsofbuyingahomesoyouandyourspousearefinanciallypreparedandunderstandhowtonavigatethisunfamiliarprocess. 2.HowDoesMarriageAffectAutoInsurance? Whileit’slesslikelythatbothyouandyourspouseownahomewhenyougetmarried,it’sprettylikelythatyoubothownacar.Thereare wellover 2millionregisteredvehicles inMissourialone.Ifonlyoneofyouownsacar,thentheonlychangeyouhavetomakewithyour autoinsurance istocontactyourinsurancecompanyandhaveyourspouseaddedasanapproveddrivertoyourpolicy. Ifbothyouandyourspouseownedyourownvehiclesbeforegettingmarried,thenyoushouldbothalreadyhaveatleasttheminimumrequiredlevelofautoinsuranceforyourstate. ExceptNewHampshire,everyotherstatemandatesdrivers haveaspecificamountofliabilityinsurance,whichcoversthecostsofdamagestotheotherdriver,passengersandvehiclewhenyougetintoawreckforwhichyouwereatfault. Ifyouandyourspousehaveseparateautoinsurancepolicies,you’llwanttodecidetogetherwhethertoterminateoneofyourpoliciesinfavoroftheotherortoseekoutanewpolicytogether.Youcanenjoysomegreatbenefitswhenyoushareanautoinsurancepolicywithyourspouse: Yourratewillautomaticallylower: Somegreatnewsforallnewlywedsisthatyou’llmostlikelyenjoyalowerrateonyourautoinsuranceautomaticallyduetoyournewmaritalstatus. Thisratechangeisbecauseinsurancecompaniesknowthatmarriedpeoplearestatisticallymoreresponsiblewhenitcomestodriving. Youcansharevehicles: Sharinganautoinsurancepolicymakesiteasytoshareandswapvehicleswheneveryouwantwithoutworryingorhavingtonotifyyourinsurer.Yourspousewillalwaysbecoveredunderyoursharedpolicy,regardlessofwhichvehiclethey’redrivingiftheygetintoanaccident. Youcangetamulti-cardiscount: Mostcoupleswillenjoysubstantialsavingswhentheygofromtwoinsurancepoliciestooncecombinedpolicy.Thisisbecausemostautoinsurersoffermultiplevehiclediscounts.Ifyoucurrentlyjusthaveonevehicleonyourpolicy,thenyouaren’ttakingadvantageofamulti-cardiscount. Membersofyourhouseholdareautomaticallycoveredbyyourcarinsurancepolicy,butyou’llstillwanttocontactyourinsurertoofficiallyaddyourspouse.Besureyourspousehascoverageunderyourpolicybeforetheycanceltheirownpolicysothereisnoperiodoftimewhereeitherofyouiswithoutinsurancecoverage. 3.HowDoesMarriageAffectLifeInsurance? Lifeinsurance isawisechoiceforcoupleswhowanttoleavetheirspouseinafinanciallycomfortablepositionratherthanadireone.Singlepeoplewithnodependentsdon’toftenneedlifeinsurance,butwhenyouhaveaspousewhodependsonyourincome,youhavetoconsidertheirfutureintheeventofyouruntimelydeath. IfYouDon’tCurrentlyHaveLifeInsurance Ifyoudon’talreadyhavealifeinsurancepolicy,gettingmarriedprovidesagoodopportunitytoconsiderpurchasingone.Lifeinsuranceisafinanciallyresponsiblesafeguardtohaveinplaceiftheuntimelydeathofeitheryouoryourspousewouldleavetheotherinadifficultspotfinancially. Considerthevariousbillsyoupaytogetherasacouple,especiallylargerexpenseslikeyourmortgagepayment.Wouldyoubeabletoshoulderthisfinancialburdenonyourownifyourspouseweresuddenlynottheretohelp?Wouldyourspousebeabletocoverthesecostswithoutyourhelp?Wouldyouoryourspousebeabletoaffordtotaketimeofftogrieveinpeacebeforereturningtowork? Anuntimelydeathwouldn’tonlymeanyouoryourspousesuddenlyhastocoverallthebills.Itwouldalsomeanhavingtheunexpectedfinancialburdenoffinalexpenses.Thecostofaviewing,funeralandburial,includingavault, costsanaverageof$8,508 accordingtotheNationalFuneralDirectorsAssociation. Theprimarypurposeforalllifeinsuranceistogiveyourdependentsasumofmoney,knownasadeathbenefit,thatwillhelpthemcovercostsinyourabsence.Thereare threemaintypesoflifeinsurancepolicies youcanpurchase: Whole: Wholelifeinsuranceisapermanentpolicy,soitwillneverrunoutaslongasyoupayyourpremiums.Thesepremiumswillremainconstantovertime,solockinginalowerpremiumwhenyou’reyoungisasmartmove.Alongwiththecostyoupaythatgoestowardyourdeathbenefit,you’llalsopayintoaninvestmentsavingscomponent. Universal: Universallifeinsuranceissimilartowholeinthatitisanothertypeofpermanentcoverageanditincludesaninvestmentsavingscomponent.Unlikewithwholelifeinsurance,though,thepolicyholderhasmoreflexibilityindeterminingtheirrates,deathbenefitandtheamountthatgoestowardthepolicy’scashvalue.Anotherdistinctionisthattheinterestratesassociatedwithyourcashvaluefluctuatewiththemarket. Term: Termlifeinsurancepoliciesdonotincludeasavingscomponent,makingthemmorestraightforward.Asthenamesuggests,theyareonlygoodforacertainterm,suchas20years,andwillthenexpire.Duringthisperiod,youpayyourpremiumsandknowyourbeneficiariesarecovered.Whenthetermends,youcanreevaluateyourfamily’ssituationanddeterminewhethertopurchaseanewpolicy. IfYouAlreadyHaveLifeInsurance Ifyoualreadyhavealifeinsurancepolicyinplacewhenyougetmarried,you’llwanttorevisityourtermstomakesureyouhavethecorrectbeneficiarieslisted.Forexample,ifyoupreviouslyhadafamilymemberoranexlistedasyourbeneficiary,you’llwanttomakeachangesoyourspouseislisted. Youhavetheoptiontolistmultiplebeneficiariesonyourpolicy,soyoucankeepotherdependentssuchaschildrenorparentslistedasbeneficiariesinadditiontoyourspouse.Justbesuretospecifythepercentageofyourdeathbenefityouwouldlikeeachpersontoreceiveifyouweretopassaway.Havingyouraffairsinorder,evenasayoungperson,isoneofthebestwaysyoucancontinuetoshowcareforthepeopleyoulove,eveninyourabsence. 10CommonQuestionsAboutMaritalStatusandInsurance We’vecoveredthebasicsofinsuranceinthecontextofmarriage,buttherearesomemorespecificquestionsweoftenhearatDavidPopeInsuranceServices.We’regoingtotakeamomenttoanswereachofthesequestions. 1.HowMuchDoesYourInsuranceGoDownWhenYouGetMarried? Theanswertothisquestiondependsonthetypeofinsurance.Whenitcomestolifeinsurance,yourmaritalstatusdoesn’ttypicallyaffectyourpremiumratesinceitisbasedonfactorslikeage,genderandmedicalhistory.However,gettingmarrieddoestendtoloweryourinsurancepremiumsforhomeandautoinsurance. Forhomeinsurance,youmaypaylessaftergettingmarriedsince marriedpeoplearelesslikely tofileclaims,statisticallyspeaking.Theamountofsavingswilldependonyourparticularpolicy.Whenitcomestoautoinsurance,thereissomestatisticaldatatoshowhowmuchyoucouldsavebybeingmarried. Missourians saveanaverageof13% ontheircarinsurancejustbybeingmarried.Ifyou’reinyour20s,youcansaveanevenhigherpercentage,moreinthe realmof20to26%less. 2.HowLongDoYouHavetoChangeYourInsuranceAfterGettingMarried? Thereisnosetamountoftimeyouhavetocontactyourinsurancecompanytoaddyourspousetoyourcarinsurancepolicyortoaddthemasabeneficiarytoyourlifeinsurancepolicy.Thesoonerthebetter,soyoudon’thavetoworryabouttheconsequencesifsomethinghappensinthemeantime. 3.DoYouHavetoGetYourOwnInsuranceWhenYouGetMarried? Youngercoupleswhoareusedtobeingcoveredbytheirparents’insuranceareoftenconcernedabouthowgettingmarriedwillaffecttheircoverage. Youcanbeonyourparents’autoinsurancewhileyouliveathome,butassoonasyoumoveout,you’ll needtogetyourownpolicy.Whenyougetmarried,youcan’tstayonyourparents’autoinsuranceanymore,soifyoudon’talreadyliveonyourownandhaveyourowncarinsurancepolicy,youshouldgoaheadandgetonebeforeyougetmarried. 4.DoesMarriageStatusAffectCarInsurance? Maritalstatusdoesn’taffectyoureligibilityforcarinsurance,butitcanaffectyourrates.Beingmarriedmakesyoustatisticallylesslikelytofileaclaim,andyourinsurancecompanyshouldrecognizethisstatisticalfactbyrewardingyouwithlowerpremiums. Aswediscussedintheautoinsurancesectionofthispost,however,yourcarinsuranceratescanalsobenegativelyaffectedifyouaddyourspousetoyourpolicy,andyourinsurancecompanyseesthemasahigh-riskdriver.Ifyou’reworriedaboutthisscenario,youmaywanttokeepseparatepoliciesandspecifytoyourinsurerthatyourspousewillnotdriveyourcar. 5.IsItCheapertoBeMarried? Theshortanswertothisquestionisyes.Whileeveryone’spersonalfinancesaredifferentandnotwomarriedcouplesareexactlyalike,asageneralrule,beingmarriedcansaveyoualotofmoneyoverthelong-term. Whenbothyouandyourspousework,youcansharebillsthatwilllikelybeonlyslightlyhigherthanbillsyouwouldotherwisehavetopayonyourown. Thereare manyotherfinancialbenefits tomarriage,suchasbeingabletofilejointtaxes. Aswe’vealreadyseen,beingmarriedcanalsosaveyoumoneyonyourinsurancepremiums. Whileitisgenerallycheapertobemarried,youshouldconsideryourownpersonalsituationifyou’retryingtodecidewhetherturningyourromanticpartnershipintoalegalmarriageisagoodfinancialmove. 6.CanMarriedCouplesHaveSeparateCarInsurance? Whengettingmarried,insuranceisanotheressentialconsideration.Youandyourspousechoosetohaveseparatecarinsurancepoliciesifyouwish.However,evenifyoudecidetodoso,youwillstillneedtolisteachotherasspousesorhouseholdmembers.Ifyouchoose,youcanexcludeyourspousefromyourpolicy,whichmeansyourpolicywon’tcoveryourspouseatall. Formostcouples,ittendstobemorecost-effectivetohaveasinglecarinsurancepolicy.Withasinglepolicy,youmaybeeligibleformorediscountslikeamulti-vehiclediscountandbetterrates. 7.CanYouSayYou’reSingleonYourAutoInsuranceWhenYou’reMarried? Ifyou’remarried,youmaybeabletogetalowerrateforyourcarinsurance.Assuch,thereisnoincentivetobedishonestwithyourautoinsurancepolicybysayingyou’resinglewhenyou’relegallymarried.Ifyoulietoyourinsurancecompany,youmayfaceclaimdenial,premiumincreasesorpolicycancellation.Fraudalsohaslegalconsequences,whichmeansyoucouldfacesignificantfines,probation,communityserviceorjailtime. 8.CanWeCombineOurInsuranceWhenWeGetEngaged? Ifyouarestillengagedandnotyetmarried,youmaywanttocombinesomeofyourinsurancepolicies,especiallyifyou’relivingtogether.Whetheryoucandosovariesfrominsurertoinsurer,asinsurancecompaniesdonotnecessarilyabidebyoneconsistentstandardwhenitcomestohandlinginsuranceforunmarriedpartners. Propertyownershipisonefactorinsurersconsiderwhendeterminingwhichcouplesqualifyforjointorseparatepolicies. Autoinsurance: Forinstance,ifyouliveinthesamehouseholdandshareavehicle,youcanshareanautoinsurancepolicy.Yourinsurermayrequireyoutoaddyourpartnertoyourpolicyifyoulivetogether. However,ifyouandyourpartnerareengagedandlivetogetherbutdrivedifferentcars,youmaynotbeabletocombineyourpolicies.Instead,youmusteachhaveapolicyforyourseparatevehiclesandlisteachotherasdrivers. Homeownersinsurance: Ifyouandyourpartnerownthehomejointly,itmaybeeasiertohaveacombinedhomeinsurancepolicy,evenwhileengaged.However,ifonlyoneofyoulegallyownstheproperty,yourinsuranceprovidermayrequireyoutoonlylisttheowneronthepolicy.Inshort,youmaywantajointhomeinsurancepolicyonlywhenbothyouandyourspouseareonthetitle. 9.DoWeHavetoBeMarriedtoShareInsurance? No,youdon’tnecessarilyhavetobemarriedtoshareinsurance.However,whetheryoucanorshouldshareinsurancedependsonyourspecificcircumstances. Lifeinsurance: Youdon’tneedtobemarriedtoenjoytheprotectionoflifeinsurance.Evenifyouandyourpartnerarenotmarried,youmaystillshareassetsandchildren,whichmeansyoulikelyrelyoneachotherfinancially.Lifeinsurancecanprotectyouoryourspouseifoneofyoupassesaway. Homeinsurance: Whileitusedtobechallengingforanunmarriedcoupletopurchasehomeinsurancetogether,thisisn’ttrueanylonger.Manyinsurersarenowwillingtoofferahomeinsurancepolicyforanunmarriedcoupleataratesimilartothatofamarriedcouple.Speakwithyourinsurancecompanytodetermineifyourpolicywillcoveryourpartner’sbelongingsifyouarethesolehomeowner. 10.WhenShouldNewlywedsConsiderLifeInsurance? Newlywedsmaywanttoconsiderbuyinglifeinsuranceassoonaspossibleafterthewedding.Assoonasyouandyourspousecombineyourhouseholds,yourexpensesincrease,especiallyifyouaregrowingyourfamily.Ifaspousepassesaway,lifeinsurancecanreplacethelostincomeandcoverfuneralexpenses. Lifeinsurancepolicyratesincreaseasyougrowolder.Aspeopleage,medicalconditionsbecomemoreprevalent,whichcanleadtolargerpremiums.Thatmeansthesooneryoucanbuylifeinsurance,thebetter. BonusQuestion:CanaMarriedChildStayonTheirParents’CarInsurance? Ifyougetmarriedandhavebeenonyourparents’carinsurance,youwillnotbeabletostayontheirpolicyanymore.Evenifyouandyourpartnercontinuetolivewithyourparentsfollowingyourmarriage,theinsurerwilllikelyrequirethatyoupurchaseaseparateautoinsurancepolicywithyourspouse. However,yourpolicyshouldlistallthelicensedmembersinyourhouseholdasdrivers.Ifyouhaveaccesstoyourparents’cars,theirautoinsuranceshouldalsolistyouasadriver.Agoodruleofthumbisthatyoumaywanttopurchaseaseparatepolicywhenyougetmarried,moveoutorregisteravehicleinyourname. EnjoyaGreatRelationshipWithYourInsuranceCompany Yournewspouseisn’ttheonlypersonyoushouldhaveagreatrelationshipwith.Youshouldalsomakesureyoupartnerwithaninsurancecompanythatwillgiveyouthetimeandattentionyoudeserve.DavidPopeInsurance,LLCisanindependent,family-ownedinsuranceagencyserving Missouri, Arkansas, Iowa or Kansas.Wehavetheexperiencetohelpeachofourclientsfindtheperfectpoliciesfortheiruniqueneeds. DavidPopecanhelpyougettherighthome,autoandlifeinsuranceforyouandyourspousesoyoucanenjoyweddedbliss,knowingyou’rewell-preparedforanythinglifethrowsatyou. RequestaquotefromDavidPope today. ShareThisPost: SearchTheBlog SubscribetoOurNewsletterNameEmailSubscribeCategoriesCategories SelectCategory Auto Commercial Home HomeFinances InsuranceNews InsuranceTips Life LifeStageSeries Uncategorized PopularPosts HowtoImproveCurbAppeal 25ThingsYouShouldAlwaysKeepinYourCar DeniedHomeownersInsurance:WhatMakesYouIneligibleforHomeownersInsurance? DoesLifeInsuranceCoverSuicide? HowAreCarInsurancePayoutsDetermined? icon-angle icon-bars icon-times