How marriage changes your insurance coverage needs

Tying the knot and embarking on a new journey together is something really exciting. But amidst the wedding bliss, don’t forget to review one important aspect of your new life together: your insurance coverage. Your insurance needs may evolve as you enter into a new life stage, with dependents to take care of. Ensuring that you’re adequately covered is crucial for a secure future.

Single vs. Married: Changes in Insurance Needs

As a single person, your insurance needs were likely focused on yourself. But now, as a married couple, you’re building a life together, and your insurance needs may evolve to reflect how illnesses, accident and even early demise may impact your spouse.

Why it’s important to have health insurance after marriage:

According to the Life Insurance Association (LIA), health insurance provides financial protection for you and your loved ones in the event of an accident, illness or disability¹. It makes up for your income loss or covers the cost of your medical treatment. Here’s why having health insurance is important:

• Unexpected medical needs: Even young and healthy couples can face unforeseen medical situations. Health insurance protects you from the financial burden of unexpected medical emergencies, surgeries, or ongoing treatment needs.
• Reduced stress: Medical bills can be a significant source of stress². Health insurance ensures you have a financial safety net in place, allowing you to focus on your health, or your spouse’s road to recovery without worrying about overwhelming medical costs.

Life insurance

As a young single individual, you might not have considered life insurance or perhaps you have had some basic insurance coverage in place. Marriage introduces a new responsibility – including protecting yourself and your spouse financially in case of unforeseen events like death or terminal illness. For example, if you purchase a term life insurance for yourself, the policy can provide a lump sum death benefit that can help your spouse maintain your shared financial goals and lifestyle in the unfortunate event of your passing.

Why it’s important to have life insurance after marriage:

Financial security for your family

• Loss of income: Life is unpredictable. If you were to pass away unexpectedly, your family may lose a source of income , impacting your family’s ability to maintain a similar standard of living. Term life insurance can provide a lump sum death benefit payout, ensuring your family’s standard of living need not take a drastic hit.
• Outstanding debts: Most couples have some form of debt, like a house mortgage or car loan. The death benefit from term life insurance can help your surviving spouse pay off these debts, reducing the risk of a financial burden during an already difficult time.
• Maintaining shared goals: Perhaps you’ve been saving for a dream vacation, a child’s education, or a comfortable retirement together. The death benefit from term life insurance can ensure these shared goals aren’t derailed by an unexpected tragedy.

Read more: Why life insurance is important at different stages of your life

Critical illness insurance

This protects you both financially if either of you is diagnosed with a critical illness. Critical illnesses can significantly impact your finances, and this insurance can offer protection during such challenging times.

Why it’s important to have critical illness insurance³ after marriage:

• Shared vulnerability: As a married couple, you’re not just protecting yourself – you’re also protecting your spouse. A critical illness diagnosis for one of you can have a significant financial impact on your entire household as you will most likely have to stop working to focus on your recovery.
• Medical expenses: Critical illnesses often require extensive treatment, medication, and specialist care. These costs can quickly drain your savings, leaving a financial strain on top of the emotional toll. Critical illness insurance provides a lump sum payout upon diagnosis of a covered critical illness, helping you manage these costs without jeopardising your financial planning.
• Supporting your spouse: If you’re the primary breadwinner and you are diagnosed with a critical illness, you may be unable to work due to your condition, potentially leading to a loss of a source of income. If you are covered with a critical illness insurance plan, the payout from critical illness insurance can provide your spouse with a peace of mind, knowing that the family need not experience the full brunt of losing a source of income.
• Future planning: Critical illness insurance provides a financial buffer that can prevent the derailment of long-term financial goals, such as saving for retirement or your children’s education.

Read more: How much critical illness cover do I need?

Additional insurance to consider:

Personal Accident Insurance

While this is not the first insurance you might consider, personal accident insurance offers valuable protection for couples.

Why it’s good to have personal accident insurance⁴ after marriage:

• Accidental injuries: Accidents can result in medical expenses beyond what your existing health insurance might cover. For example, your personal health insurance may not cover the medical expenses of an outpatient consultation for an ankle sprain as most health insurance plans only cover in-patient medical costs. Personal accident insurance can help cover these outpatient medical costs, reducing the financial strain on your budget.
• Temporary or permanent disability: Severe accidents can lead to temporary or permanent disability, impacting your ability to work and earn income. Personal accident insurance can provide a lump sum benefit or income replacement to help manage your finances during this challenging time.
• Financial stability: A stable financial environment is important if you’re planning to have children. This insurance ensures your spouse has a financial buffer if you experience an accident that affects your earning potential. This can help maintain your family’s standard of living and ensure your children’s needs are met.
• Double income protection: Many young couples rely on a dual income to meet their financial goals. Personal accident insurance helps safeguard against losing one income source if an accident prevents you from working.

Read more: 5 reasons why you may need a personal accident insurance

Reviewing Company Insurance

Don’t underestimate the value of company-sponsored insurance. Take time to understand the coverage offered, its limitations, and how it supplements your personal insurance plans.

Potential cost savings: Many companies offer health insurance plans that allow you to extend coverage to your spouse. While it might seem convenient to stick with your existing individual plan, there’s a chance that adding your spouse to your company plan could be more cost-effective. Company plans often negotiate lower rates with healthcare providers, resulting in potentially significant savings.

Gaps in coverage: Company plans, while beneficial, might have limitations in coverage compared to individual plans. Reviewing your plan after marriage allows you to identify any gaps that might expose your spouse to uncovered medical expenses.

Dependent Coverage: Company plans may or may not allow you to add dependents right away. Some might have waiting periods before dependents become eligible for coverage. Understanding these limitations is important for planning how to bridge any gaps in coverage, especially if you’re expecting children soon.

Optimise coverage: By thoroughly understanding your company plan’s details, you can explore potential add-on options like dental or vision insurance. These add-ons can provide additional coverage at a potentially lower cost compared to purchasing separate individual plans.

Lastly, you also need to note that company insurance will be terminated when you leave the company. You may leverage on it while you are employed with the company. However, you and your spouse should have personal insurance plans before it’s too late as the insurers won’t usually cover pre-existing medical conditions.

Consider getting FWD Term Life Plus⁵ insurance upon getting married to ensure that your loved ones are protected. In the event of your death or terminal illness, your spouse is eligible for a complimentary insurance policy of up to S$250,000 without any underwriting for one year. Tailor your coverage according to your needs and goals, and get covered up to S$1.5 million.*