After getting engaged, there are a lot of exciting things to do — like posting ring pictures on Instagram and starting the wedding planning. But there are also two less glamorous tasks that may be a lot more important than scheduling those cake taste tests.
They involve buying two types of insurance that many newly-engaged people need to have in order to protect their loved ones — and a valuable new asset they may have acquired.
1. Life insurance
Anyone who does not yet have life insurance should seriously consider buying a policy ASAP after getting engaged. That’s because joining together romantically typically means taking on shared financial obligations.
Many people buy houses together after marriage, or even simply move into a bigger and more expensive apartment. They may have kids, or take on other shared responsibilities that affect their finances. As a result, both people in the relationship usually develop some dependence on the other person’s income since they’ve built a shared life based on two salaries. Or, if one person starts staying home and managing the couple’s life, then that person becomes dependent on their partner’s earnings and their partner starts relying on their services.
Once two people need each other’s income or personal support, a death can be not just emotionally devastating, but financially disastrous as well. That’s why a life insurance policy is so important. The policy can ensure that if one person passes away unexpectedly, the other still has the money they need to cover living expenses.
Buying a life insurance policy with a death benefit equal to about 10 times the policyholder’s income is a quick and simple way to protect a new life partner after an engagement. And it’s best to buy it ASAP, as the younger and healthier someone is when buying coverage, the cheaper a policy will be.
It’s easy to compare life insurance policy quotes online and sign up for coverage either online or with help from an insurance agent. Do so ASAP after getting engaged so the right protections are put in place.
2. Jewelry insurance
There’s another important type of insurance many couples will need after getting married. It’s called jewelry insurance.
The national average cost of an engagement ring is $5,500, according to The Knot. But, many homeowners insurance companies limit coverage for jewelry to $1,500. This means if something happens to a ring, most people wouldn’t be able to get back the full amount they paid for it.
But there are standalone jewelry insurance policies out there, as well as riders that can be added onto a standard homeowners insurance policy. In any situation where a valuable engagement ring is involved, it’s a good idea to look into getting this kind of coverage. After all, no one wants to be left unable to afford to replace an engagement ring if it is stolen or damaged beyond repair due to a covered loss.
Talking to an insurance agent about policy options, or comparing quotes online, are two great ways to find a jewelry policy that offers affordable protection.
By buying these two kinds of insurance, newly-engaged couples can move forward into their new life together with the protections they need to avoid a few big financial disasters, should things go wrong.
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