Insuring a New Marriage

Financial Reporter for Babyboomers.TV

Since the last newsletter, I have had the joy of walking my daughter down the aisle in the course of her marriage to my new son-in-law. They spent a considerable amount of time in the planning for that memorable occasion. However, re-evaluating their insurance coverage wasn’t one of the items uppermost on their minds and neither is it in the minds of most newlyweds. But the right insurance programs can go a long way toward shielding you against the kinds of financial calamities that can strain and sometimes break a marriage. In that regard, we thought we would indicate several key insurance areas that we recommend newlyweds (and all married folks, for that matter) review.

It’s a given that couples should have life insurance if they have or expect to have children, or if one spouse earns most or all of the couple’s income. But, it is often suggested that life insurance is not needed where couples have no dependents and where both spouses work in comparable-paying jobs. This may be suitable in some cases, but you may still want to consider additional life insurance beyond what is offered at work.

The fourth advantage of getting life insurance early for many newlyweds is that they can lock in low premiums while they are young and healthy. Lastly, while group term insurance is probably available at work, it can’t go with you if you leave your job, and it often is inadequate. Also, you don’t want to need additional life insurance at a time when you’re uninsurable for an individual policy.

If either one or both spouses bring existing life insurance to the marriage, they’ll probably want to name their new spouse as beneficiary. Otherwise, death proceeds could end up going to an ex-spouse or parents.

Competing with life insurance premium dollars are other insurance needs for newlyweds, and high on that list should be disability insurance. This insurance is designed to partially make up for lost wages should you not be able to work because of an injury or long-term illness. Statistically, young people are more likely to suffer a lengthy disability than to die prematurely. Group disability coverage at work typically is not sufficient, so you may want to augment it with a private policy. While any worker, single or married, should consider this, it becomes even more important when you have a spouse, particularly one who may be dependent on your income. Newlyweds commonly live in apartments or rented houses before buying their first home or condo, yet they often mistakenly believe that the landlord’s insurance will cover damage to their personal property. Renter’s insurance is inexpensive and easy to get.

So, for newlyweds, it is clearly the time now to assess your insurance coverage and ensure its adequacy. The wedding planning came to its conclusion and the serious side of the new marriage in terms of financial planning must come into focus. If we can be of any assistance in answering your questions, please do not hesitate to give us a call.

Neal A. Deutsch is a Certified Financial Planner™ & Registered Securities Principal, offering securities through First Allied Securities, Inc., member FINRA/SIPC. Neal is President of Chestnut Investment Group in Suffern, NY, helping people with financial planning since 1984. Please feel free to call Neal at 845.369.0016 or email him with your questions at neald@chestnutinvestment.com. Visit his website at www.chestnutinvestment.com