All About Me

Conversations About Insurance and Money

If you have the time and brain space for it, review the upcoming insurance and money management changes before the big day so you have all of your ducks in a row. 

Car insurance

If you and your partner have car insurance policies through different companies, get quotes from both to see which offers the best deal. A new insurer might even have a cheaper price for you, so don’t discount shopping around. Ask about discounts for a multi-car policy, for bundling with your renters or homeowners insurance, and for the simple act of getting married. Married couples are sometimes seen as less risky, and so get lower rates. For example, young couples in their 20s could pay 20–26% less, and those in their 30s 2–5% less.

Whoever cancels coverage needs to ensure the new insurance is effective on the day the old insurance expires. Any lapse could lead to higher rates next time you shop for coverage.

Homeowners or renters insurance

This will probably only change for those who have been living apart and are now moving in together. Whoever’s policy you choose to keep will automatically cover both of you, but you’ll still want to list your spouse on the policy. Like with auto insurance, you may receive a small discount for getting married.

You will want to increase your limit on personal property coverage, which pays to replace or repair items that are stolen or damaged, as you now have more to lose. High-value items—like those wedding and engagement rings—will most likely need special coverage.

Life insurance

You may not have had a life insurance policy when you were single, but it’s a good idea now, especially if your death would leave your spouse in a financial tight spot. For example, if they depend on your income to help pay bills, if you share a mortgage or other loans, if you have debts your spouse would be responsible for, and/or if you have young children.

As with auto and homeowners/renters insurance, look for a multi-policy discount.

Health insurance

This is the big one, partly because there is a ticking clock, once you’re married, to make changes to your health insurance plan. Marriage is considered a Qualifying Life Event (QLE) and triggers a special enrollment period no matter the time of year, giving you (typically) 60 days from walking down the aisle to enroll in a new individual health plan, or 30 days for one of you to join the other’s employer-based health insurance. If you miss this window, you must retain your individual plans and wait until open enrollment to make changes.

Generally, going with an employer-based plan is the cheapest. Weigh each of your plan’s deductibles, coinsurance, co-payments, coverage limits, prescription coverage, and choice of care providers. Being on the same policy could allow you to reach your annual deductible quicker. Marriage can penalize newly married couples who used to receive subsidies through the Affordable Care Act when single because your combined income will be higher.

Ready to make these next-level life decisions with your partner? It might not be as exciting as picking dance music for your reception, but having an insurance plan will go a long way in establishing a secure financial future together.

When you get married, there are three main options for dealing with your money.

Those include keeping your finances separate, merging some of your accounts or putting all of your financial eggs in the same basket. Each option has its pros and cons, which are important to consider as you and your spouse map out your financial plan. 

Option #1: Each spouse manages and maintains their own, separate account

Some couples may have cold feet when it comes to joining their bank accounts. They may choose to manage and maintain their own separate accounts. At the same time, they might commit to each saving an agreed upon amount per month, and dividing up household expenses according to a fair distribution.

Pros: You don’t have to worry about your spouse having the same spending habits as you and you can continue to manage your money as you like. That's a plus if you're worried about sacrificing any of your financial independence or if your spouse is a spender, for example, while you're a saver.

Cons: It makes bill paying a little trickier, and you'll still need to communicate about how much each person spends. If one spouse is not a good communicator, this may cause issues. Additionally, if something were to ever happen to one spouse, it could take months before the surviving spouse gets access to the funds. 

Option#2: Merge your money halfway

If a couple decides to merge their money halfway, each spouse keeps a separate bank account in which to put their paychecks, and then there is a joint account funded by both spouses from which expenses are paid. 

Pros: The pros in this situation are that each of you has the ability to maintain some independence, while at the same time playing a shared role in your household financial management. When bills are paid from one account, it can take the stress out of keeping track of what's been paid and what hasn't. 

Cons: Having multiple accounts to manage could be a little confusing, especially if one of you is more organized than the other. If you and your spouse earn different salaries, you'll have to figure what percentage of each of your incomes is a fair amount for each to contribute toward shared expenses. 

Option #3: Put all the money together in a union - like your marriage!

In this scenario, you'd set up a single joint bank account into which all future paychecks are deposited and from which all expenses are paid. Any spending money, vacation money, and all other purchases come out of this same account. You could also decide to allocate a set amount each month from the account to use as you both wish. 

Pros: A joint bank account can offer a sense of unity and partnership. If you're focused on fine-tuning your budget, it'll be easier to track money coming in, versus money going out, because there's complete transparency, and it can be simpler all around to have all your money combined in one place.

Cons: One of the main cons of this set-up for a newly married couple is that one or both partners might feel that someone is always looking over their shoulder. If one spouse tends to spend money more freely than the other, it will be much more readily apparent and that could lead to money arguments. 

Disclosure: This information is provided to you as a resource for informational purposes only. It is being presented without consideration of the investment objectives, risk tolerance or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. Investing involves risk including the possible loss of principal. This information is not intended to, and should not, form a primary basis for any investment decision that you may make. Always consult your own legal, tax or investment advisor before making any investment/tax/estate/financial planning considerations or decisions. 

What key money skills do young adults need to know? When it comes to moving out on your own, it’s all about preparation. Our All About Me program offers helpful information tol help you plan, and manage your financial life. Our All About Me program is specially designed for young adults (18-31) and is perfect for college students and young adults starting their first jobs.

Where Can I Learn More?

• Bank On Hampton Roads offers free adult financial education classes.
• Learn about credit scores and how to build credit.
• Visit our Privacy and Security Center for information on protecting your identity.

Budgeting, Credit Card use and protecting your identity are also part of adulting.