New couple? Update your insurance to protect your future together

Living together is an important step in building a loving relationship. To smooth the transition and ensure you are financially secure, consider updating your insurance products to make sure they fit your new life together and ensure you both have the protection you need.

Married and common-law couples

In Canada, living common-law means living together in a conjugal relationship for at least one year. A couple are considered common-law as soon as there is evidence they are living together in a conjugal relationship. Although cohabitation means living together continuously, there may be periods when one spouse is away from home for work, business, family obligations or other reasons. However, the time apart must be temporary and brief.

From a legal standpoint, a common-law relationship is a de facto union. In other words, the facts of the couple’s situation determine whether or not a relationship is common-law. Marriage, on the other hand, is a legally established union.

Group insurance and common-law couples

If you’re a member of a group insurance plan, you may want to add your spouse to the plan. Not only can save you money by adding your spouse to your coverage, you will be updating your coverage to ensure it meets your current needs. A group insurance plan covers the cost of medications and gives you access to numerous health care providers and services at a lower cost. Let your plan sponsor know about your new situation so they can make the appropriate changes to your coverage.

In Quebec, the law requires your spouse to join your employer’s group plan if they do not have coverage through their own employer.

Life insurance

Life insurance safeguards your financial security in the event one spouse passes away. If you don’t have life insurance, it’s a good idea to purchase a policy that covers you both as a couple. If you already have life insurance, consider increasing the coverage to make sure one of you is not left in a difficult financial situation.

Disability insurance

Would you be able to maintain your current standard of living if one of you becomes disabled as a result of an accident or an illness? Disability insurance provides income in place of your salary so that you can focus your energy on recovering without having to worry about money matters.

Disability insurance is especially recommended for people who are self-employed, as they do not normally have insurance coverage through an employer.

Critical illness insurance

Critical illness insurance provides you with a fixed, tax-free lump sum payment that you can use to meet your financial obligations and any health-related expenses. This frees you up to focus on your recovery.

Critical illness insurance can be purchased individually or as a couple. Both partners would be covered by the same policy under a joint insurance product.

The main reason for a couple to purchase life, disability and critical illness insurance products is to replace a loss of family income. In the event of an untimely death, life insurance replaces a spouse’s lost income and ensures that any children you have can enjoy the same standard of living as before.

Insuring your property

Auto insurance

When you become a couple, you may end up with two vehicles. Consider adding your spouse to your policy as the second driver of your car. You can even save money by combining your auto insurance policies with the same insurance company. And if you bundle your home insurance with your auto insurance, you could save even more. Make sure you look into the conditions and fees for changing or cancelling policies.

Tenant insurance

Is your spouse moving in with you? Consider adding them to your tenant insurance policy. This ensures that their belongings are covered and that they have legal liability coverage. Don’t forget to update your coverage amount to account for their belongings.

Home insurance

Are you moving into a new house together? Make sure you have home insurance to cover damage to your belongings and to cover accidental injury to another person while on your property.

Now you’re all set to experience the joys of life together, for better or for worse. By making sure you both have the insurance you need, you can tip the scales in your favour.