A child getting engaged is a special time. Your child growing up and deciding to share their life with someone else is a beautiful thing. It is important for your child to be prepared for what marriage will bring in all aspects of their life. First, your child should be prepared to always make decisions with two people in mind, instead of just one. They will also need to be prepared for the complete combination of aspects such as finances, living arrangements, hopes, and dreams. There are also more practical aspects to be concerned about, such as insurance. Here are three things to tell your newly engaged child about insurance.
Plan for the worst
Though the couple may be just starting out when it comes to life and career, it is important to always plan for the worse. For this reason, the couple should be counseled on having the correct types of insurance policies. Home or renter's insurance, medical insurance, and life insurance should be combined for the couple in order to save cash. It is important to plan for the worst by having the best insurance that the couple can afford.
Consider more life insurance
Even if your child already has life insurance, it can be a good idea to pump up the amount of the life insurance payout. Upon the creation of a family unit, there are often more responsibilities. A new spouse having to worry about burial, a new mortgage, or other end of life business can be devastating emotionally and financially. For this reason, newlyweds who have many different responsibilities should increase the amount of life insurance that they currently carry.
Reconsider auto coverage
If the newlyweds have drastically different ideas on vehicles or different ideas about driving, not combining auto coverage can sometimes be a good thing. For instance, if one party in the relationship is prone to having a lead foot and often receives tickets, this can penalize the entire couple if on one auto policy. If one person has an appreciation of luxury vehicles while the other part of the couple prefers economy cars, the insurance may raise for the person who likes economy priced driving. Each person carrying their own auto policy means that there is no trouble when it comes to picking cars from the dealership and or getting a moving violation. Separate auto policies may be able to save a newly budding marriage.