Insurance coverage often changes depending on major life events—some trigger new needs, while others modify existing policies. Here’s how insurance works (or should be adjusted) for key life stages:
1. Getting Married
Health Insurance: Can add spouse to employer plan (open enrollment or special enrollment period).
Auto Insurance: Combine policies for a multi-car discount.
Life Insurance: Consider joint term policies or increase coverage to protect spouse financially.
Home/Renters Insurance: Update policies to cover shared assets (jewelry, electronics).
2. Having a Baby
Health Insurance: Add newborn within 30–60 days (check employer or ACA plan rules).
Life Insurance: Increase coverage to account for childcare, education costs.
Disability Insurance: Ensure income protection in case of parental leave.
529 Plan: Start education savings (some life insurance policies offer education riders).
3. Buying a Home
Homeowners Insurance: Required by lenders; covers structure, liability, and belongings.
Flood/Earthquake Insurance: Often separate from standard policies.
Umbrella Insurance: Extra liability coverage for high-value assets.
Auto Insurance: Update address to avoid rate hikes (location affects premiums).
4. Changing Jobs
Health Insurance: COBRA (temporary coverage) or switch to new employer’s plan.
Life/Disability Insurance: Portability options if employer-sponsored.
Retirement Accounts: Roll over 401(k) to avoid penalties.
5. Divorce
Health Insurance: Lose ex-spouse’s coverage (qualify for ACA or employer plan).
Life Insurance: Remove ex-spouse as beneficiary (unless court-ordered).
Auto/Home Insurance: Split policies; update titles and named drivers.