As Dan Burghardt, the president of Dan Burghardt Insurance, I’ve had the privilege of assisting countless couples in navigating their insurance needs as they embark on their journey together. If you’re a newlywed, congratulations! It’s an exciting time, filled with joy and new adventures. Amidst all the excitement, it’s crucial to take a moment to consider how your new marital status impacts your insurance needs. Here’s what you need to know:
Why Newlyweds Need to Think About Insurance
As you blend your lives together, you’re likely combining more than just your households – you’re joining your financial lives too. Insurance plays a significant role in protecting that financial future, providing a safety net in case of unexpected events.
Auto Insurance for Newlyweds
Combining your auto insurance policies could lead to significant savings. Many insurers offer multi-car discounts, which could lower your premiums. Additionally, if you’ve tied the knot, insurers may consider you a lower risk, leading to further reductions. Review your current coverage levels and ensure they’re adequate for your combined assets.
Home Insurance for Newlyweds
Whether you’re moving into a new home or one of you is moving into the other’s existing home, you’ll want to reevaluate your home insurance. If you’re renting, a renters insurance policy is a must to protect your belongings and cover you in case of liability claims.
For homeowners, ensure your policy covers the replacement cost of your dwelling and provides enough personal property coverage for your combined belongings. Don’t forget to add any valuable wedding gifts to your policy!
Life Insurance for Newlyweds
Life insurance is perhaps the most critical consideration for newlyweds, especially if you plan to start a family. As difficult as it may be to discuss, it’s crucial to ensure that each partner will be financially secure should the unthinkable happen. Term life insurance can be a cost-effective option, providing coverage for a specific period, typically 10, 20, or 30 years.
Health Insurance for Newlyweds
Health insurance is another area where marital status plays a significant role. Marriage is considered a qualifying life event, which means you can make changes to your health insurance outside the standard open enrollment period. Compare each partner’s health insurance options to determine whether it makes more financial sense to join one policy or keep separate ones.
Consider an Umbrella Policy
As newlyweds, you’re building a life together, which often includes accumulating assets. An umbrella insurance policy can provide an extra layer of liability protection beyond what your auto or home insurance policies offer. It kicks in if the liability limits on those policies are exhausted, protecting your assets from a potential lawsuit.
Reviewing Your Beneficiaries
With marriage comes the responsibility of updating your beneficiary designations. These are the individuals who will receive benefits from insurance policies and retirement accounts in the event of your death. Newlyweds should review and update these designations on life insurance policies, retirement accounts, and other applicable financial accounts.
Insurance and Your Future
While it’s easy to get caught up in the honeymoon phase, taking the time to get your insurance needs in order sets the foundation for a secure future. It’s not the most romantic aspect of getting married, but it’s an act of love, providing financial protection for your partner.
At Dan Burghardt Insurance, we’re here to help you navigate these decisions and ensure you’re starting this exciting chapter of your lives with the right coverage. Whether you have questions about combining auto insurance policies, choosing life insurance, or any other insurance needs, don’t hesitate to reach out. We’re here to support you on your journey together.