With Spring upon us, weddings are underway! Planning a wedding and getting married is a blissful experience but there are some considerations couples have to take into account when it comes to insurance and merging two households.
Auto: The good news is that now that you're married, you can add your vehicle to your spouse's policy and obtain a "multi-vehicle" credit. Review both of your policies and decide which policy you want to use. Keep in mind however that if one of you has points, those points will automatically be applied to the more expensive vehicle to insure - no matter who drives the vehicle primarily. If you both have excellent driving records then combining your policies into one should only be of benefit to you.
Home: If you are buying a home together, you will need to insure the home to it's "replacement cost." Replacement cost is different than market value. It does not include the land value and is the estimated cost to rebuild the structure in the event of a total loss. Your insurance agent will be able to estimate the replacement cost. The homeowners policy will cover the structure, your personal property and will also provide liability protection. You will also want to think about adding coverage for those expensive wedding rings or any other valuables you may have. You will want to "schedule" these items on to your policy as otherwise they are subject to a minimal limit of insurance. Your insurance agent will review other important features of the policy and will recommend other optional coverages. If you are moving in to your spouses home that is already insured, you will want to make sure that there is enough personal property coverage on the policy and you will also want to "schedule" any valuables you have.
Life: Joining together means sharing responsibility with and for someone else. If you both work, you'll depend on both incomes to maintain your lifestyle. Or if one spouse works, that income will be depended on. If you have assets together, you'll most likely have loans and debt as well. Life Insurance ensures that in the event of a death, the surviving spouse is taken care of. There are two basic types of life insurance: Term Insurance and Cash Value. Term Insurance is the simplest form and provides a death benefit for a certain amount of time. Cash Value life insurance provides permanent protection and also accumulates cash value over time. The policyholder can use the value as an investment or can borrow from it. There are several different types of cash value policies.
Are you getting married or are you a newlywed? Congratulations! We'd love to help you out and make sure you and your spouse have adequate coverage. Please contact us at (978) 562-3464
Thomas E. Sears Insurance Agency, Inc.