When wedding bells ring, it may be time to revamp your insurance coverage. Marriage can be one of the most exciting and significant events in a couple’s life. As you promise to love and cherish your spouse, it’s also important to be sure you have enough protection so that both of you are taken care of.
Why life insurance? Life insurance should be one of the first things you review or consider after you become married. It is important because someone else is now financially connected to you. After all, the main purpose of life insurance is to protect financial loss to loved ones that are relying on your income. If you are financially responsible for the well-being of other people, then there is a real need for life insurance. Life insurance helps your spouse financially in the event of your death by covering immediate needs, debts you may have incurred, dependency expenses, and other financial concerns.
Even if one of you will be staying at home, you should consider insurance coverage to replace the job of taking care of the home and the children.
Beneficiary Designations — Be sure to update your beneficiary designations on existing insurance coverage. It may be time to replace your mom as beneficiary and add your new spouse. If you were married prior, and your ex-spouse is the named beneficiary of your life insurance policy, he or she will be entitled to receive the proceeds when you die, regardless of what your will may say.
Also, don’t name a minor child as a beneficiary. Insurers generally won’t make settlements directly to minors. The probate court handling your estate may require that a trust be set up, and a guardian appointed, to manage the proceeds.
As your life changes, your financial needs change as well. Insurance protection is fundamental to sound financial planning. It provides protection for your loved ones and their future. Contact a financial advisor or insurance professional to help you evaluate your coverage needs and options.
For more information contact Rebecca Robins, CPA/PFS, CFP®, CA Insurance Lic#0D75745 at 661-222-2331. She is located at 25129 The Old Road, Suite 105 in Stevenson Ranch. Securities offered through Associated Securities Corp.
(ASC), member FINRA/SIPC. Advisory services offered through Associated Planners Investment Advisory, Inc (APIA), ASC, David S. Reinders, CFP®, Inc., Registered Investment Advisors. David S. Reinders, CFP®, Inc. is not affiliated with ASC or APIA.