If you have finally decided to move in with your partner, you have a lot to plan. However, one area many couples overlook is their insurance. As a couple, your insurance needs may change. That means you need to review your existing policies and look for opportunities to improve rates while ensuring you are both covered.
Moving in with someone can affect all of your insurance policies, from life to health and car to renters insurance. Here are the things to consider when you are moving in with someone in Alberta.
Life Insurance Policies for Couples
Life insurance is often not considered by young couples who are not ready to think about death. However, it is one of the best ways to ensure your loved ones can cope with your loss. Because death can have a considerable impact on your finances, you want to ensure your life insurance policy can ease some of the burden.
Life insurance is even more critical if you own a home together. First, check with your employer’s life insurance policy to see if you can add your partner to the package. Then, speak to your insurance broker about the insurance available. You might also have an existing life insurance policy with someone already named as the beneficiary. You should decide if you wish to change your partner to the beneficiary. The term life insurance options available for couples include:
Joint first-to-die term insurance
This insures both of you in one policy and is paid out to the beneficiary once the first partner dies. Both partners have the same coverage, and it tends to have lower rates. However, these policies can be less flexible and become more complicated if you separate. Once one of you dies, the policy ends, and the survivor will need to start paying into a whole new policy.
Single term insurance
This provides each partner with a separate policy, so each has their own coverage amount. It tends to be more expensive than joint policies, but it is also easier to manage or make changes if you part ways.
Car Insurance for Couples
Car insurance is a must if you and your partner intend to share a car or cars. The auto insurance policy will have to list your partner as a driver. If you each have a car, it can be cheaper to buy insurance as a couple. If you need to cancel a policy to get a couple’s insurance policy, it might cost you more.
Your car insurance will cover the driver, passengers and others involved in the accident. Couple insurance will list one of you as the principal driver based on who uses the car the most. When choosing a couple’s car insurance, if one of you has a bad driving record, you might pay more.
Home and Tenant’s Insurance for Couples
If you don’t let your insurance company know a partner has moved into your rented home, there is a good chance your renter’s insurance policy won’t cover their belongings. On the other hand, home insurance tends to protect you and the family members who live there. It is still always best to inform your insurance company when you have a new tenant or partner in the home.
Another important thing to keep in mind is that if you are moving in with a partner, they might not even have insurance if they rent. This is because renter insurance is often not required. In this case, it makes sense to ask if they do.
If they don’t, you should speak to a broker about getting a policy; otherwise, your belongings are not covered even in the case of a fire. Your landlord’s insurance only covers the structure. If someone breaks into your home and steals your belongings, you won’t have a way of covering your losses.
Health and Dental Insurance for Couples
Many couples overlook the chance to add each other to their work health or dental insurance plans. If you live together, you can usually add your partner. That saves money in health and dental insurance because most policies can be overlapped so that what isn’t covered by one is covered by the other. You can find out more details about each plan, including:
- The deductible
- The percentage covered for each medical service or dental procedure
- Maximum coverage limitations
If children are involved, they might also be eligible if they are underage, still in school full time, or have disabilities. If neither of you has insurance, it might be worth speaking to an insurance broker about insurance coverage. Covering costs for dental, treatments such as physio, medications and more can get expensive quickly. Health and dental coverage can help offset these costs. If you are both healthy, it might not seem worth the investment, but you should always be prepared for any eventuality.
As you can see, there is a lot to consider when it comes to insurance and living with a partner. From renters insurance to car insurance and life insurance to health, moving in with somebody calls for an appointment with your broker.
For more information on the insurance you need when moving in with someone, call Bow Valley Insurance at 1-800-332-1308 or contact us here.
Coverage is subject to policy wording, terms, conditions, and deductibles. Protection is limited to the perils, coverage, exclusions, and limits shown on the policy.