3 insurance plans young couples have to get

Just married? Don’t start building your family on a shaky ground. Be sure – get insured. Here are 3 insurance plans for newlyweds.

After excitements of the wedding day, newlyweds are so overwhelmed with emotions of making a new home together that insurance concerns sometimes can be completely forgotten. But when two lives come together, there are some legal issues involved and insurance is one of them.

1. Extended health insurance

If you think that you are young and healthy and do not need insurance, think again. When you are dealing with serious issues or when certain life events occur, such as having a baby or losing your job, you don’t want to worry about money for medical treatments for people you love. Although OHIP covers lots of health care related issues, it doesn’t cover prescription drugs, dental care, vision care and physiotherapy costs. Will you be able to address these issues promptly? Don’t you think better safe than sorry?

Coordinate coverage with your spouse

If you (or your) spouse don’t have health insurance yet, you may be able to get coverage through one or the other’s plan. If you both have coverage, it’s a good time to review your plans to see if you should maintain separate policies or get joint coverage. You might find that, for example, that you can get better, more affordable coverage by switching to your spouse’s health insurance plan.

Get high deductible health insurance

A common way to lower the cost of health insurance is to opt for a plan with a high deductible. Premiums on high-deductible plans are lower because you have to pay more out of pocket until coverage kicks in. This type of plan can make sense for healthy, young adults who don’t take many or any prescription drugs and don’t require frequent trips to the doctor. But you shouldn’t bet on your good health to help you avoid paying the deductible. If your employer offers a health savings account along with a high-deductible health plan, you should be setting aside money in that account to cover your deductible and other out-of-pocket medical costs.

If you can’t afford to max out your health savings account or cover the cost of your deductible, a high-deductible plan might not be the best way for you to save money on health insurance, Muhammad says.

2. Long-term disability insurance

You probably don’t know that more than 1 in 4 of today’s 20-year-olds will become disabled before reaching age 67. If you became part of that statistic and can’t work because of a disability, you and your spouse would likely feel the financial pinch from the loss of your income.

That’s why it’s important to have disability insurance to fill the gap. Think of it as protection for your paycheck because it will replace a percentage of your income if an illness or injury leaves you unable to work, temporarily or permanently. Disability insurance can even be used to replace income during maternity leave.

Workers’ compensation insurance will pay only if the injury or illness is work-related. It can be difficult to qualify for Social Security disability benefits, and the average payout is just about $1,300 a month.

You should have at least a minimum amount of long-term disability insurance that protects against lost income in the event you become disabled. As an incentive for people to get back to work as soon as possible after becoming disabled, most disability insurance plans cover up to 70% of salary.

If you’re employed, you likely can get disability coverage through a group plan at work. Typically, group disability coverage will replace up to 60% of income. The drawback to relying on group coverage is that you can’t keep it if you leave your job.

3. Life insurance

When you were single, you likely didn’t have anyone counting on you for financial support. That may have changed now that you’re married. If you and your spouse count on each other’s income to support your lifestyle, you both need life insurance that will keep the other financially afloat if something happens.

Why should married couples and newlyweds consider life insurance? You may think that you don’t need life insurance, especially if you’re not planning to have children or don’t have any yet. But there are other factors to consider. You could provide your spouse or partner with a financial resource that could help cover their cost of living should you pass away. If you have children, a life insurance policy can help maintain their standard of living.

Life insurance does not buy life; it buys peace of mind in our uncertain world. For many young couples, the best life insurance type is term life insurance. Term plans are the most affordable and have a set benefit that exists for a certain period of time. These policies offer more coverage for lower premiums. Other products are investment oriented and may not fit in with either the long or short term plans the young couple has for investing their money