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Insurance Changes after Marriage

married-coupleWhen merging two households, careers, and lives, the choices that couples make normally establish which person has the better insurance, interest rate, etc. Better financial protection may now need to be determined since two people are relying on one another.

Auto insurance rates for young, single adults are higher than that of a young married couple. Adjusting insurance coverage for both individuals or changing insurance completely can save money and give you the best coverage available.

Homeowners insurance or renters insurance need to be considered, too. If you are buying a home, homeowners insurance may not only be required by your mortgage company but may help make you whole again after a major occurrence.  The insured value of the home should be enough to cover a repair or replacement of the home, should there be a major disaster or issue. Set your deductible to what you can afford right now– a low deductible will increase the premium, a high deductible will lower your premium. This is a great time to look into a floater policy for the wedding rings or any other expensive valuables, and complete a home inventory to make sure you know which valuables to cover. Renters insurance covers the personal property content of an apartment, since the landlord’s insurance already covers the building.  Both homeowners and renters insurance provide liability coverage or coverage if you are sued due to a covered occurrence.

Now that you are married, chances are you and your spouse rely on each other. It makes sense now to look into a life insurance policy so that if anything happens you won’t have to worry about finances. Term insurance covers the insured for a fixed period of time whereas permanent or whole life insurance covers the insured for their entire lives. Buying whole life insurance at a young age will give you a lower premium for the life of the policy. With term insurance, the premium will go up if needing to renew at the term end, but the premiums are lower.

If both spouses work, the marriage will bring two health insurance plans together. Deciding whose plan will better suit the couple’s needs can be tough, so compare coverage options, co-pays, and decide which insurance plan has the best coverage for the least amount of money.

Disability insurance is optional but may be beneficial to look into. If a sickness or illness prevents one spouse from working, the loss of income can be devastating. Some employers offer disability coverage as an option, it is considered a benefit and is taxable. Buying disability coverage depends on the income of each individual– if you can survive on one income, you most likely do not need disability insurance.

After marriage, financial planning (including creating a retirement fund or long-term investments) is crucial. Saving for a home, children, or retirement is necessary, as well. Saving one income and living off the other person’s income is just one useful strategy for aggressive saving. Deferring taxes on income through an IRA account is another great option for a retirement fund and can save you money on taxes.

Please call your friendly agent at Hometown Insurance Agency, 631-589-0100 or email service@hometowninsurance.com for helpful information and a free quote on life, disability, auto or home insurance. We’re here to help you!

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