Marriage brings together two people’s families, furniture, finances and more — and it can certainly be a bit overwhelming. As you approach the big day, you’re probably not thinking about merging your investment portfolios or car insurance policies. But research and work through these important financial decisions sooner than later so you can take advantage of the best options at the lowest cost.
Financial Benefits: 3 Things to Do After Getting Married
Whether or not you combine bank accounts, it’s critical to have a thorough overview of each other’s employer-provided financial benefits.
1. Review Employer-Sponsored Retirement Plans
Start your married financial journey by studying your employer-sponsored (or self-employed) retirement options. Look at the plans’ performance since you’ve contributed, investment types and loan options.
2. Compare Employer 401(k) Matching
Some employers will match employees’ 401(k) contributions up to a certain percent. Ideally, both spouses should make the maximum matched contribution. However, if necessary, always prioritize the spouse’s plan that has a higher percentage employer contribution match.
3. Update Your Beneficiaries
If you haven’t already, add your spouse as a beneficiary for any employer-provided benefits, like retirement plans and life insurance.
Will I Lose My Insurance If I Get Married?
No — if you get married, your insurance coverage won’t suddenly disappear. However, there are some financial considerations. In many cases, being on the same policy, whether for car insurance or health insurance, offers substantial cost savings. Let’s look at three important scenarios you’ll want to consider combining insurance policies.
Combining Health Insurance as a Couple
You can usually only change your health insurance plan during the 45-day open enrollment period at the end of the year. However, marriage counts as a “qualifying life event” — giving you the option to add a spouse on your current plan within a certain time frame (generally 60 days after the wedding). Use that time to weigh plan options, coverage differences and potential savings. Two people on the same plan tends to be cheaper than two individual plans.
Life Insurance for Married Couples
It’s possible you have a basic life insurance policy through work, or maybe you have an additional term life insurance or whole life insurance policy. Couples, married or not, can have individual life insurance policies, but you might want to consider a joint life insurance policy. This coverage is generally less expensive because there’s only one benefit payout. It’s also harder to find and considered a niche product.
Combining Car Insurance After Marriage
Married people typically pay slightly less for car insurance than single people. And you’ll likely earn a better rate and save money with two people on your policy if you both have good driving records — ask your Farm Bureau agent about multi-car discounts. Bonus: You’ll have one fewer bill to keep track of.
The Perfect Partner for Your Partnership
As you navigate the newlywed world, your Farm Bureau financial advisor can help you build a solid financial future. Reach out or find a financial advisor today.