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Marriage offers a financial reset and a rare chance to update your health insurance and employer-sponsored benefits outside of open enrollment. As a qualifying life event, it gives you a 30- to 60-day window to compare plans and choose the one with the best coverage at the best price.
It’s also the perfect time to review retirement accounts, update beneficiaries on existing accounts and life insurance policies, and get quotes for car insurance to unlock multi-car discounts. By reviewing your coverage and making changes early, you’ll start your marriage with a clear plan and aligned financial goals.
Key Takeaways
- Marriage is a qualifying life event, giving you a special enrollment period to update benefits.
- Compare both spouses’ health plans to select the most cost-effective and comprehensive coverage.
- You can’t merge retirement accounts, but you can align goals, beneficiaries, and providers.
- Combining car and life insurance policies can save money and simplify management.
- Most updates to benefits must happen in the first 30 to 60 days of marriage.
Combining Health Insurance After You Marry
Marriage counts as a qualifying life event, and that means after you say ‘I do’ to your spouse, you can say ‘I don’t’ to your old health insurance coverage. Depending on your health care plan, you’re given at least 30 days after your wedding (but up to 60 days in many instances) to update, add, or change coverage in your health insurance plan.
Start by using your benefits guide to compare both of your current health insurance plans’ premiums, deductibles, co-pays, covered benefits, networks, out-of-pocket maximums, and prescription drug coverages. Pay special attention to the benefits that you might not need today, but may need in the future, like maternity coverage or mental health services.
In comparing all the options, the decision should come down to not only cost, but also coverage quality, your unique health needs, and whether you’ll still have access to your preferred doctors and hospitals.
Once you’ve compared the details and chosen the plan that makes the most sense for your household, you should contact both of your HR departments or insurance providers to fill out the necessary paperwork to make the switch. You will likely have to provide your marriage certificate, name change documentation (if applicable), and your updated dependent information.
Tip
Your spouse is now considered a dependent for your health insurance.
Benefits of Merging Health Insurance
Merging your health insurance can have several advantages.
Often, it’s more cost-effective to have one plan covering two people than to maintain two separate plans. Choosing a single plan may also provide you and your partner with more comprehensive coverage, as one spouse’s plan may include better benefits, such as fertility care or lower prescription costs.
Additionally, having a single plan may simplify your life with fewer bills, fewer claim processes, and less paperwork overall.
Merging your health insurance can simplify your life, save you money, and ensure you both have the coverage you need as you begin a new chapter of your life together.
Tip
Qualifying life events (QLEs) let you update your health insurance outside of open enrollment. Common QLEs include marriage or divorce, the birth, adoption, or placement of a child, the death of a dependent, loss of other coverage (like job-based insurance or Medicaid), moving to a new ZIP code or state, or a significant change in income.
Combining Retirement Accounts After You Marry
Unlike bank accounts, retirement accounts can’t merge to create a single “joint” account because individual retirement accounts (IRAs) and 401(k)s are always individually owned. However, that doesn’t mean that IRAs are a strictly individual project. Couples planning for their financial future together should consider their individual retirement account choices as part of their overall investment strategy.
The first step to align your retirement accounts with your new family’s financial goals is to update your beneficiaries so that if you pass prematurely, your spouse can inherit your retirement savings without going through probate.
Consider employer 401(k) matching when deciding how to allocate your earnings to retirement savings. As a couple, prioritize retirement savings to at least take advantage of full matching contributions in employer-sponsored plans.
Even if one spouse does not work outside the home, the employed spouse can open and contribute to a spousal IRA.
You and your spouse may also choose to roll over old 401(k)s into a single IRA or your employer’s retirement plan for simplicity’s sake and to make tracking progress to your goals easier.
Combining Life Insurance and Car Insurance After You Marry
After the ink is dry on your marriage certificate, it’s also a great time to reevaluate your life and car insurance to ensure your coverage is adequate and to see if adding your spouse to your policies would save you money or hassle in the long run.
For life insurance, consider whether you need additional coverage or a joint policy. Joint life insurance is sometimes less expensive than two individual policies, but they’re harder to find and have limited flexibility. Couples may find that two separate policies, each sized to replace income, cover debts, and fund financial futures, is a more cost-effective and practical choice.
With car insurance, adding both spouses and vehicles to a single policy can mean unlocking multi-car discounts, saving you money, and simplifying your billing. When considering changes to your current policy, get quotes from your current insurer, but also shop around to confirm you’re getting the best coverage at the best price.
Can You Combine Your Health Insurance as an Unmarried Couple?
In short, probably not. Most employer-sponsored plans only allow you to add a spouse or a legal dependent, as supported by legal documentation, such as marriage or birth certificates. However, some employers extend coverage to domestic partners, but require proof of partnership, such as a shared lease, a domestic partnership affidavit, or joint financial statements.
What Are the Cons of Joining Your Spouse’s Health Plan?
When weighing the options of whether to join your spouse’s health plan, you must consider both the pros and the cons. In switching, you may lose access to the unique benefits of your own plan. These may include switching from a preferred provider network, higher deductibles, or losing employer HSA contributions. Additionally, you and your spouse should consider payroll deductions, especially if the employer doesn’t pay a portion of spousal coverage.
What Are the Eligibility Requirements for a Spousal IRA?
Spousal IRAs are a valuable tool to help families plan for their retirement, but they have specific eligibility requirements to qualify. You must be legally married and file taxes jointly. The contributing spouse must earn enough to cover both contributions; your combined income cannot exceed certain caps, and contributions for each spouse must fall under IRS limits for traditional or Roth IRA contributions.
Who Needs Joint Life Insurance?
Joint life insurance can be a cost-effective way for couples to get life insurance coverage because often one policy is cheaper than two separate ones. A joint policy can also simplify things with one premium due date, one renewal date, and assurance that the surviving spouse can cover shared obligations like mortgages or education expenses in the event one spouse dies prematurely.
The Bottom Line
Marriage isn’t just the start of a new chapter; it’s a chance to reset your financial foundation as a couple. Within the first 30 to 60 days after the wedding, review your health insurance, update beneficiaries to existing retirement and life policies, and explore combining car and life insurance policies to maximize savings and simplify management.
Even though you can’t combine retirement accounts, you can align your goals and make a shared plan for your financial future. Taking action early gives you and your spouse a jump start on achieving your financial goals. For personalized advice, consider consulting a financial advisor or benefits specialist to ensure you’re maximizing every opportunity.
