4/29/2013 12:40 AM

Financial Protection for Couples

Before getting married, there are a number of adjustments couples have to make. They may need financial protection and there are choices that to need to be made as to which spouse has the best existing insurance coverage.

Auto: Single people tend to pay higher rates for auto insurance. When two people get married, they may qualify for a discount. It’s a good idea to review existing coverage and see which company offers the best combination of services.

Home: When buying a home, the insured value of the house will be less than the market value. The insured value needs to be sufficient to repair or replace the home if there is a major disaster. Be sure that the coverage keeps pace with additions or major improvements that increase the value of your home. Set the deductable on the policy as high as you can. The higher the deductable, the less the coverage will cost..it can also mean fewer claims.

Health: Most people get health insurance through their employer. If both spouses work, this can mean two health insurance plans which may include dependants. If you have a choice, families with two working spouses should compare coverages and choose the plan that offers the best coverage for the least amount of money.

Financial planning: Financial goals may include saving for retirement and saving for a specific reason. Some investments can be long term while others are more liquid. Joint incomes put a household in a higher tax bracket. Depending on a household’s adjusted gross income, IRA contributions may be tax deductable.  

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