Taking the step to get married is not a decision we take lightly and while the excitement of the event is top of mind, there is some serious business that needs to be taken care of when the tables are cleared. When you live solo it’s a case of “me, myself and I”. When you get married it’s all about “us and we”.
If you are in the fortunate position to buy a property straight away you will need a whole array of financial services. The bank will in all likelihood require you to buy life insurance to cover the value of the bond. You will also need homeowners insurance. These costs should be factored in when you look at affordability. It is important to note that you do not need to take the bank's options for insurance you can shop around and find the cover that suits you.
Life cover, aside from the value of your house is also important. Both spouses will benefit from life cover as it ensures that should one of you die, expenses will be covered and it would make up for any shortfalls when one income is no longer available.
When it comes to home insurance you should consider putting your car and home insurance in one policy because it is generally cheaper to do it this way. If you will be renting, renters insurance is a good idea. Many people make the mistake of believing that their landlord's insurance will cover them for a flood, theft or fire. However this is not the case, the landlord's insurance will only cover the building, not your contents.
The next item on the agenda is disability insurance, the risk of being injured in an accident is much higher than dying. When you are starting, income protection is also an important cover to have. Depending on the plan you take, Income Protection means that your salary will be partially replaced should you suffer an injury that renders you unable to work.
If you are just starting, these products may not all be affordable at once but you should try and get at least the basic amount of cover and build up as your income increases.
Getting your savings on track is the next step. Draw up a joint budget and allocate at least 15% to a savings plan. If you start right by prioritising savings and keeping out of debt you will build a healthy financial lifestyle and keep money disagreements in the naughty corner.
Blended families
If you are getting remarried and have children from previous partners then the waters are muddy somewhat. You need to carefully consider the needs of all parties in terms of life cover, investments and Estate Planning. This can be a tricky situation to navigate and a good financial advisor will be able to help you allocate resources fairly.
Finally, don’t forget to draw up a will. Only 5 % of South Africans have a valid will and this will cause the people they leave behind a lot of heartaches. Dying without a Will or Intestate will result in the state disposing of your assets and you may not like who they go to.
Hollard Life Assurance Company (Reg. No. 1993/001405/06) is an authorised Financial Services Provider.
The Hollard Insurance Company. Ltd (Reg No 1952/003004/06) is an authorised Financial Services Provider.
