A key insurance and financial checklist for newly married couples
7 financial & insurance necessities all newlyweds should consider:
- Life insurance
- Auto insurance
- Homeowner’s/renter’s insurance
- Health insurance
- Update your will
- Determine day-to-day financial management matters
- Develop a household budget
Have you recently gotten married? Congratulations! Now it’s time to ensure your finances are in order. Just as you created a checklist for your wedding, you also need a checklist for your financial and insurance future. We’re here to help get you started.
1. Life insurance
Looking back at 2020, it’s safe to say that we should always expect the unexpected. You never know when illness or an accident could change your life forever. Life insurance is meant to protect your spouse in the event of your death and ensure he/she is equipped with long-term financial resources.
As a newlywed, you are not only combining incomes, but also debts, which might include a home, car loans, or credit card debt. Even your student loans could become your spouse’s responsibility if something were to happen to you.
There are a few different types of life insurance policies to consider:
- Term life insurance
- Permanent insurance
- Joint life insurance
- Spousal rider
2. Update your will
As a newlywed, it can be hard to imagine a day when you might not be here. However, you need to make your wishes known in the event of your death, no matter your age. Creating a will is essential. How do you want your assets divided? Do you have children from a previous relationship? You want to ensure they are protected, too, along with your new spouse.
Make sure to identify your primary and secondary beneficiaries. You may also want to appoint an executor to make sure your final wishes are carried out.
3. Auto insurance
Your financial co-mingling probably includes one or more cars. On top of financial protection in the event of an accident, did you know that buying an auto insurance policy together could lower your rates?
It’s true. Statistics show that married drivers file fewer claims, which means they pose less risk to the insurance company. If you plan to insure more than one car, you may be able to get a multicar discount, as well.
4. Homeowner’s or rental insurance
Whether you plan to buy a house now or rent and save money for a while, you need dwelling insurance. Homeowner’s insurance is required in most states, although the amount and types of policies can vary. Many landlords also now require you to have renter’s insurance to cover your personal belongings.
Homeowner’s insurance will pay to replace or repair your home and personal belongings in the event of damage. It also offers liability protection in case anyone is injured on your property.
5. Health insurance
Health insurance is a necessity. If you are injured or get sick, the medical bills can quickly add up. If you both get health insurance through your employer, you may not need or want to make any major changes. However, if you plan to enroll in a plan together, then you have some work to do. If one of you is self-employed or a stay-at-home parent, it might make sense to enroll as a couple.
Although you can usually only make changes to your coverage during the annual enrollment period, you are allowed to make changes for up to 60 days after getting married. Some employer-based plans require you to make changes within 30 days of the marriage, so pay attention and don’t let the deadline pass.
6. Determine how you will manage your finances
Finances are one thing that tends to put stress on a marriage, particularly for newlyweds. One of you may be loose with money, while the other watches every penny. Plus, you may not be used to consulting someone else about how you spend money. It’s something you will have to learn, however.
From joint or separate bank accounts and retirement investing to who will manage your day-to-day finances, you have a lot of decisions to make.
7. Develop a household budget
You need to sit down together and determine your household budget. Factor in regular monthly expenses like mortgage/rent, health insurance, auto insurance and other car charges like gas, and expenditures such as student loan payments and credit card bills. You also want to include a budget for clothes, food, and entertainment such as dining out or going to the movies. Even future vacation plans should be included in your budget.
It’s always important to set aside money in a savings account too. As 2020 demonstrated, you never know when your job security could be put in jeopardy.
Ensure a happily ever after for your financial future
Wedded bliss depends on many factors. You can’t ensure everything will be smooth sailing, but you can take steps for when the waters get rough. Taking care of your insurance and financial needs now is truly one of the best ways to do that.
Contact us to talk about your needs and request a quote.