Newlyweds & insurance


wessing cake topper couple standing on coins

Like 2.3 million other couples this year, you may be putting the finishing touches on your plans for a wedding. On average, there are 6,200 weddings per day in the US, but some months are more popular than others. The Spring is an active time, with 10% of all weddings in May and 11% in June. Statistics say that the average wedding budget is $20,000 and the average number of guests is 178.

From the event to the honeymoon, it’s a big deal with a lot of details, so it can be easy to overlook insurance. But we’re not just talking about wedding event insurance which, if you plan a costly event, you should definitely consider to cover cancellation or losses such as stolen gifts, damaged photos, rings or gowns and other unforeseen problems. In this case, we’re talking about insurance matters that you and your spouse should consider as you embark on a financial life together.

The National Association of Insurance Commissioners (NAIC) offers a handy tip sheet about insurance matters that engaged couples should discuss: Combining Your Insurance: Just got engaged? Don’t forget to talk about insurance. It discusses decision points and money saving tips for homeowners and renters insurance, auto insurance, health insurance, and life insurance.

Of course the easiest way to cover insurance is to make an appointment with your local independent insurance agent, who can walk you through all the considerations both for the event itself and for the various coverage options you’ll need going forward. As you embark on a new life together, you no doubt have many hopes, plans and dreams. The right coverage can keep you on track by protecting you from unexpected losses. Your agent will know the best coverage options and the ins and outs for saving money.

Below is an infographic Insurance Survival Guide for Newlyweds, also from NAIC. (For a larger version, click the link or the image).

Insurance survival guide for newlyweds infographic

Unclaimed property


There’s a total of more than $32 billion in the nation’s unclaimed property pools representing more than 117 million accounts. It’s mostly money or assets that were either forgotten or abandoned – and in many cases, the abandonment occurred when the account holder died and nobody else knew the account(s) existed. Don’t let your property become part of that pot!
We’ve previously talked about the importance of updating your beneficiaries on insurance polices and other financial records. Just like changing batteries in your smoke detector and getting your car inspected, you should set a routine time to do this annually – failing to do so might leave your loved ones wrangling with court proceedings – or even totally unprotected. The importance of planning cannot be overemphasized. Not to be grim, but you simply never know when your time will be up. For a statistical assessment, see our prior post What are the Odds where we have a lot of risk tools that you can play with. They range from actuarial tables to to calculators for finding out your relative risk of dying in the next year or being attacked by a shark.
OK, you get the point. Planning is important. This past week, the Wall St. Journal featured an excellent and very helpful article in their finance section about The 25 Documents You Need Before You Die – alternately titled as “Designing your death dossier,” which makes it sound pretty fancy. The article makes the point that it is not simply enough to ensure that your policies are updated – it’s also critical that somebody in your family knows what and where all your important documents are.
We counted more than 25 important documents referenced in the article – but it is unlikely that all will be relevant to your situation. Nevertheless, it’s a great reference article to bookmark and keep as a checklist for your annual planning.
Oh, and about that unclaimed $32 billion, if you think any of it might rightfully belong to you, here’s a good place to check: The National Association of Unclaimed Property Administrators will let you conduct a free search.

Bizarre bequeathments and strange will requests


Would you like to be buried in your favorite car? Or perhaps you’d prefer to be preserved as a mummy sitting upright and kept on display at your alma mater? And how would you like your assets to be dispersed? Would you like to leave your life’s fortune to a precious pooch or to have it divvied up and doled out to strangers? Or perhaps after you’ve passed, you’d like to have a single red rose delivered daily to your surviving spouse, the way Jack Benny did? All these odd will requests and many others have been stipulated in wills at one time or another.
Whether your post-mortem wishes are highly exotic or purely pedestrian, they aren’t likely to happen at all unless you take proactive steps to ensure that they do – and that requires filing a will and keeping it updated. Making a will is an important part of the financial planning process.
Dying intestate” is the common term for dying without a will. When that happens, decisions about the disposition of your assets default to the applicable state law, which may or may not be in accordance with your preferences. Dying intestate might also result in a dispute among potential your heirs or a delay in assets being dispersed to your heirs. The CCH Financial Planning Toolkit adds some important considerations:

“The bad thing about dying intestate (other than dying, of course) is that a state’s default rules may not go far enough to meet a deceased’s distribution wishes. For example, although a surviving spouse is generally first in line to inherit, the spouse may end up having to share the estate with other relatives of the deceased. Also, if a person is not on the list of potential heirs, then he or she is out of luck (which may result in excluding a “life partner,” lifelong friend, or favorite charity). The final indignity is that, if there are no relatives identified during probate, the state takes the assets the deceased spent a lifetime acquiring.”

You can learn what is likely to happen to your assets should you die without a will by checking this map of intestate succession laws for all 50 states.
It’s important to note that a will is not the be all and end all for ensuring the dispersal of your assets according to your wishes. The distribution of many of your financial assets – such as life insurance policies or 401K and IRA accounts – would be governed by who you named as a beneficiary. It’s extremely important for you to keep your beneficiaries up to date because life circumstances change. You may or may not be pleased if your ex-spouse inherits your life insurance policy, but if you haven’t changed the designated beneficiary, that could happen.