Recently married? Have you and your partner reviewed your insurance plans? Now is a good time to consider long term care insurance, revisiting your health insurance plans, property insurance and more. We have some tips to assist in the process of deciding what will be the most financially beneficial.

5 Areas to Consider:

1. Life – Now is a smart time to purchase life insurance. As two households become one, you will want to protect yourself and family members in the event of your death. Be sure to choose the policy most suitable for your situation - dependent on age, gender and medical history. A Term policy may be considered if one has a short term goal that they would like insurance coverage for if they pass – such as paying off the mortgage or covering college education for your children. This plan supplies a death benefit to your named beneficiaries and has a relatively inexpensive premium for a limited period of years. A Whole Life policy is a permanent insurance option that provides a death benefit to designated beneficiaries, while accumulating a cash value. Whole Life Insurance tends to be more expensive as it has the benefit of accumulating cash value that can be accessed during life, under certain conditions. Regardless of the type of life insurance you have it should be reviewed on a regular basis.
   -Here is a helpful chart that can help you decide what option is best for your individual situation:

   1. Features	Whole Life	Term
      Coverage Duration?	Covers you for life or to a specified age	Purchased to cover a specific time period like 5, 10, 15 or 30 years
      Guaranteed death benefit?	Yes, it provides death benefits as well as a cash value accumulation that builds during the life of the policy.	Provides death benefits only
      Cash value?	Yes	No
      Cost?	Premiums generally higher because the policy lasts for a lifetime and has cash value	Initially low cost, increases when you renew (after term is up)
      Conversion option?	No	Yes, on certain policies you may be able to convert to whole life

      
      
2. Health – One financial benefit of marriage is acquiring a family health insurance plan. There is no requirement to be on the same plan as your spouse, but it may be a more cost-effective option as they cover more than one individual. However, if you or your partner were previously on a plan from an employer, remaining on it may be the better financial decision. It is worthwhile to weigh all options but be sure to finalize your plan in accordance with your employer’s rules.
3. Home & Property – Have you recently moved in with your spouse? Make sure to update the policy by including both names on it to ensure protection for everyone. If only one spouse is listed, the other spouse will not be able to make claims or changes to your policy even if they live in the house with you. You may run into a situation where you need your spouse to make a claim on your behalf, hence it is wise to have both listed on the policy. If you or your partner came into the relationship with previous assets, it may be beneficial to include personal property coverage. This could apply to wedding rings, or other valuable items with high monetary value. Your marital status may also qualify you for a discount from your insurance company. If you do not own a home, you should consider renter’s insurance to cover the contents of your apartment.
4. Auto –Most insurance companies provide a discount for joint automobile insurance policies. As long as you and your spouse have good driving records and no recent gaps in insurance coverage, it will likely be more cost effective to combine policies. Before combining, you will also want to factor in the value of the car, and average mileage. For some, joining your spouse’s policy may not be worthwhile. Luckily, there is no restrictive time to add your spouse to a policy if that becomes a future preference for you two.
5. Liability [Umbrella] Insurance – Umbrella insurance is an insurance policy that “sits on top of your homeowner/auto policies to provide additional coverage for items not covered in the underlying policies. You should have enough liability coverage to equal your net worth in case someone slips and falls on your front steps and sues you for all you are worth. [A slip and fall is just one example of where this type of coverage will come into play.]

Be sure to check out our whitepaper, “Financial Planning for Every Stage of Your Life”, where you can find useful information about the next steps to take as you approach each milestone.

Questions? Contact KLR Wealth Management, LLC.

Investment Advisory Services offered Through KLR Investment Advisors LLC

Investment Advisor Representative

Insurance Services offered through KLR Insurance Advisors, LLC

951 North Main St Providence RI 02904