The Impact of Life Changes on Your Insurance Needs.

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Remember when we were kids, and we couldn’t wait to grow up because being an adult seemed like the coolest thing in the world?

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How naive we were.

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It turns out that there’s more to being a grown-up than the freedom to go out without a curfew (pandemic aside). Adulting isn’t just fun and vibes; there are genuine responsibilities that come with maturing.

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Life events like getting married, having children, and buying a house are major milestones that significantly change a person's life.

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Marriage leads to combined finances and shared responsibilities. 

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Having a baby requires providing for their future financial security, and buying a home may involve protecting one of the most significant investments.

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And we haven’t even factored work into this equation, PLUS there’s insurance to think about too?!

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Understanding the impact of these life events on insurance needs is imperative because these changes can and will have long-term financial consequences.

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Getting Married: Here comes the bride.

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Marriage’s impact on insurance needs.

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For some, marriage may mean changing your name. 

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For others, it may mean changing your habits. 

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But everyone can count on marriage having a significant impact on their finances.

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You go from a single to a double income household, and most of your bills are split in half, decreasing costs because of the shared responsibility. 

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Most marriages involve combining finances, sharing responsibilities, and potentially changing employment.

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All of these changes affect insurance coverage.

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In the insurance space, married drivers are seen as more financially stable and safer, so they typically pay less for car insurance. This, however, also depends on the driving history of both partners before getting married.

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You and your spouse will need to be recognised in each other’s insurance policies to cover any costs that might affect you unexpectedly.

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For example, some insurance companies limit the number of people that can drive your car. 

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Only one regular driver can be noted on a policy. If the regular driver was not behind the wheel at the time of an accident, there might be penalty fees called standard additional excess.

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However, this standard additional excess does not apply to the regular driver or their spouse.

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Combining insurance policies with a spouse

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Combining insurance policies with a spouse is optional, but it does make a whole lot of sense — a good option for married couples, as it can result in cost savings and streamlined coverage. 

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If you and your spouse have good insurance histories and no recent gaps in coverage, you might be able to save more overall by combining policies than by keeping them separate. 

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In car insurance, should your household possess more than one vehicle, you can save by getting them insured under one policy. Thank you multi-car discounts.

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Importance of life insurance for married couples

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When getting married, there are two things couples hate to consider; 1) divorce and 2) widowhood.

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However painful and uncomfortable these situations are, the reality is they are a possibility. 

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In 2021, Statistics South Africa (Stats SA) released a report indicating that four out of 10 marriages would end before the 10-year mark.

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And with crime being a constant concern and general health issues in our society, you never know which day may be your last. 

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Therefore life insurance is a worthwhile investment.

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Life insurance for married couples can provide financial security in the event of the unexpected death of a spouse. 

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In the unfortunate event of an untimely passing of a spouse, life insurance provides financial resources to help cover costs.

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Funeral expenses, mortgage payments, and living expenses are all taken care of, allowing the surviving spouse to focus on grieving and adjusting to their new way of life. 

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And for the deceased, ​​having life insurance allows you to rest in peace, knowing that you did all you could to ensure that your loved ones are protected in the event of an unexpected loss. 

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Oh, Baby!

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How having a baby can impact insurance needs

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A baby; a beautiful symbol of a couple’s love for one another that also solidifies the family unit (we’re NOT saying babies save doomed relationships).

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But as every parent, older sibling, and family friend knows, it takes a village to raise children. And even then, it may not be enough.

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Kids need more than love and attention, but that’s always a good place to start.

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Nothing says I love you more than knowing you are taken care of entirely. As a parent, it’s your responsibility to provide for your children financially. 

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A new baby typically requires medical coverage, so updating your health insurance policy to cover prenatal care, childbirth, and additional paediatric visits is good.

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And as far as car insurance goes, as a new parent, you’re likely to be more cautious in your movements. A whole human being depends on you, and we bet you want to stick around to be there for them.

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This means you’ll drive slower, more carefully and (some might even argue) better than you ever have before. That ‘baby on board’ sign will definitely keep you in check if the actual baby hasn’t already!

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Resulting in reduced premiums thanks to this driving behaviour.

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And you’ll be on the road a lot less; nights on the town will be replaced by staying indoors taking care of your new family, which means less chance of a claim-related incident, 

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Updating life insurance policies to include children

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A child becomes your dependent, which increases the need for life insurance. 

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The saying, “Money is the root of all evil”, can be verified by many people. Unfortunately, some members of your family may view your death as an opportunity to cash in big time.

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That’s why, as a parent, you must update the beneficiary designation on your life insurance policy to reflect your children as beneficiaries. 

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The death of a parent has a significant financial impact on a family. Adjusting your life insurance coverage to ensure adequate financial protection for your growing family is crucial.

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They would be able to receive the death benefit in the event of your death.

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As your family grows and circumstances change, it’s essential to review your life insurance coverage regularly to ensure that it continues to meet your needs.

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The importance of purchasing health insurance for children

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You’ve heard the saying happy wife, happy life, right? Well, here’s another good one: "A healthy child keeps the expenses mild.”

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I’m pretty sure I just made that up, but regardless of the origin, it makes perfect sense.

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Investing in your baby’s health will pay off significantly later on.

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Purchasing health insurance for your children helps to protect them against the high cost of medical care. It also guarantees that they receive the necessary care to maintain good health. 

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Plus, children are susceptible to illnesses and injuries, and health insurance offers parents peace of mind.

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Health insurance can help families avoid financial hardship in medical emergencies and ensure their child receives the necessary medical care. 

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Buying a Home

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You might’ve dreamed of uttering the words, “Hi MTV, welcome to my crib,” or “Mi casa es su casa”, and with your latest property purchase, these dreams are now a reality.

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Very few things in life are as exciting as being a proud homeowner; you have your own space and the freedom to move around however you please.

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But with great power comes great responsibility.

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How homeownership can impact insurance needs

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Much like adulting, having a house is a lot of hard work. 

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You have to worry about paying off your bond, maintaining the state of the property and worrying about potential break-ins.

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As a homeowner, you need insurance coverage for your property and belongings and liability coverage in case someone gets injured on your property.

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Little did you know that homeownership can impact insurance needs, as owning a home means that you have more considerable financial investment and more assets to protect. 

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Homeowner's insurance and its coverage

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Buying your house is only the beginning; you also have to consider investing in it the same way you would all your other vital assets.

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Investing in your home means more than buying plushy throw pillows and a nifty welcome mat.

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Your house needs insurance protection too.

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Homeowner's insurance is a type of property insurance that covers damages to the structure of your place while personal property and provides liability protection. 

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Coverage includes fire, theft, storm damage, and personal liability. 

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Homeowner's insurance does not typically cover damages caused by earthquakes or floods unless you purchase additional coverage from your insurance provider.

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Purchasing additional coverage for natural disasters

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Insurance is like a tree; many branches sprout from the same source.

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The downside is that a single policy will not cover all your needs, but the upside is that there is always a specific cover that will.

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As stated, homeowner’s insurance doesn’t cover natural disasters, so you’d need to buy a policy to protect these specifically.

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And since standard homeowner's insurance does not cover damages caused by these events, it's essential to have the proper coverage in place to protect your assets.

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Purchasing additional coverage for natural disasters, like floods or earthquakes, is vital because such events can cause extensive damage to your home and property. 

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Conclusion

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Nothing beats making informed decisions about insurance coverage during big life changes. 

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The things that once worked for you as a singleton will not be relevant in your new role as a married individual, a parent or a homeowner. 

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As your roles in life change, so will your insurance needs.

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Whether purchasing a new home, starting a family, or experiencing any other significant life event, it's crucial to evaluate your insurance needs and make sure that your coverage is sufficient to meet your changing needs.

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That being said... get a quote!

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Pineapple (FSP 48650) is underwritten by Old Mutual Alternative Risk Transfer Insure Limited, a licensed Non-Life Insurer and authorised FSP. T&Cs apply. Premium is risk profile dependent.

Please Note: The information provided above is for informational purposes only; you should not construe any such information as legal or financial advice.