MOVING IN TOGETHER
Are you about to move in with your significant other?
See what you should plan for in terms of insurance and savings to begin your life together on the right foot.
Reassessing your insurance coverage
Moving in together is an important step in a relationship. To make this transition easier and to ensure your financial security, think about adapting your insurance coverage to your new shared life.
Life insurance - Life insurance enables you to guarantee your and your significant other’s financial security should something bad happen. If you don’t have life insurance, consider getting some in order to take into account your new needs as a couple. If you already have life insurance, consider increasing your coverage to make sure your significant other does not become burdened with financial troubles.
Disability insurance - If you or your significant other become disabled as a result of an accident or an illness, would you be able to maintain your lifestyle? Disability insurance provides salary replacement income so that you can focus your energy on recovering without being worried about your finances.
Critical illness insurance - Paid in a lump-sum payment, critical illness insurance will provide you with a pre-determined amount, tax-free, and help you meet your financial obligations and pay any fees related to your medical condition. Thus, you can focus on your recovery.
Group insurance - If you are covered under a group insurance plan, you may want your significant other to benefit from this plan. By choosing joint group insurance, you can save money and change your coverage based on your real needs. Inform your plan administrator about your new situation so that the necessary changes can be made to your coverage.
Insuring your property
Auto insurance - You are now two. Think about adding your significant other as the second driver on your vehicle. To save more, you can bundle both your auto insurance policies with the same insurance company. You can save even more money if you also add your home insurance. Get more information about changes to your policy and cancellation fees.
Renter’s insurance - Is your significant other moving in with you? Consider adding him or her to your home insurance policy. This will ensure his or her belongings are covered and that he or she has legal liability coverage. Remember to change the amount of coverage to include his or her belongings.
Home insurance - Did you just move into a new home? Think about getting home insurance to cover damages to your belongings and to cover you in case of accidental injury to another person occurring on your property.
Saving for your projects
Whether you are the ant or the grasshopper, whether you plan for the short term or the long term, or whether you are planning for a wedding, retirement or an extended trip, you must save money. The sooner you begin to save, whether you have a small or big budget, the more money you will save, money for the projects that are important to you. Align your investment strategies with your significant other and maximize your savings.
TFSA - A tax-free savings account will help you save money that you would have otherwise put in your piggy bank, tax-free with no impact on your taxable income. It will help you save what you need to carry out your projects and use your money when you need emergency funds when unexpected events occur.
RRSP - Do you want to prepare financially for your retirement? Set savings objectives and get the retirement you want. A registered retirement savings plan will help you grow your money tax-free. It will also allow you to deduct all your contributions from your taxable income and maybe, depending on your situation, provide you with a significant refund.
Declarations and coverage
Living together has many legal and financial consequences. You must make a budget, split your fixed and variable expenses, adapt your insurance and plan your savings.
You will also have to declare your significant other on your income tax return and it would also be a good idea to draft a cohabitation agreement and a will. A will makes sure that your last wishes are respected and is especially useful if you and your significant other are common-law spouses, as you do not have the same rights as married couples.
Because no one can predict the future, it is also important to protect your assets in case of separation or divorce.
Changing your beneficiaries
Is your couple thriving and now you’re thinking about starting a family?
Remember to check the designated beneficiaries on all your individual and group insurance and savings products. Thus, should something bad happen, you can make sure that your significant other can meet your shared financial obligations worry-free and get through this difficult phase.
Go to Changing your beneficiary to see the steps to follow to change or modify your beneficiary.
Need personalized advice?
A financial advisor can explain each in detail and help you to choose the right investments to reach your savings goals.