Because relationships can be complicated – and insurance almost always is – when the two intertwine misunderstandings often lead to insufficient coverage, as well as marital distress.
To help maintain financial and emotional harmony in your marriage, avoid these errors:
- Failure to admit bad credit before marriage. Credit issues have a long reach in a variety of ways, such as setting auto insurance rates. Ask how your score will be used and whether both spouses’ credit will be reviewed.
- Not naming a spouse as the beneficiary under your life insurance. If there’s no beneficiary and no will, he or she might receive less than half of the benefit. If a life policy is part of a divorce agreement, tell your new spouse.
- Trying to save money on auto coverage by not listing your bad driver spouse on your policy. This can lead to denied claims, policy cancellation, and even prosecution for fraud. Because most auto insurance companies offer multiple discounts, you might pay less with a joint policy.
- Failure to insure your home and valuables properly before a fire or other catastrophe causes significant damage. Cover your dwelling for its full replacementcost. If your possessions have value, either sentimental (wedding rings) or real (antiques, fine arts, etc.) they’ll need to be insured.
- Letting insurance lapse for non-payment. If you’re the spouse who pays the bills, make sure you do your job. If your auto or homeowners policy lapses, you won’t be covered. Even if you don’t suffer a major loss, you’ll need to re-apply and might have to pay more for less coverage. Be aware of grace periods for insurance payments, which vary by state and type of policy.
For a complimentary, comprehensive review of your insurance give us a call.
