Two Become One
Going from two to one sounds like a good idea. After all, there’s no trouble in simplifying, right? Well, only if you forget about the paperwork that comes with it.
Rebecca Korach Woan, president of Chartwell Insurance Services in Chicago, offers these insurance tips for newlyweds.
• Do not neglect to add the spouse’s name or vehicle to the automobile policy. While most carriers would carry over the policy to the spouse, you do run the potential risk that some would not if they have a narrow definition in their policy.
• Be sure you have adequate renter’s or homeowner’s insurance. If both spouses are not named on the title of the home or the home is in a trust, you should discuss with the insurance company to be sure any and all possession are adequately covered.
“That’s reflective of the people who live within the residence,” Woan says. “For example, if you have someone who lives in the house of their parents … perhaps they need a renter’s policy because they may not be covered on [their parents’] policy.”
• Don’t get too caught up in good credit/bad credit; insurance usually just asks for the credit score of one spouse.
• It’s a good time to sit down with a financial planner to discuss your assets, investments and liabilities, which will help you decipher what type of life insurance you may need. If you don’t have time to do an exhaustive financial review, it’s very easy to pick up some term life insurance.
• It’s also a good time to review your coverages and make sure you have an adequate amount of coverage to insure all the gifts you received for your wedding.
• Don’t forget to insure the ring! “Most newlyweds … are good about adding the ring to their [homeowner’s insurance] policy,” Woan says.