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Recently married?
How to protect (and
invest in) your future

Tied the knot recently? Here’s how to start planning your financial future...

'And I now pronounce you...' Since tying the knot, your priorities have likely been opening presents and browsing snaps from your big day.

Financial planning may have been the last thing on your mind. But as you plan your lives together, it’s important to think about how you’re going to secure your financial futures.

What’s mine is yours

As the celebrations die down, it’s worth having a conversation at some point soon about life insurance.

Do you already have life insurance? If you do, now might be a good time to review your cover to make sure it’s providing the right protection for your new circumstances.

For example, now that you’re married, the next big step could be to upsize before starting a family. If that’s the case, buying a bigger house may mean a larger mortgage, and you may need your policy to reflect that.

Meanwhile, if you have two separate policies, combining them could save you money.

However, bear in mind that one policy means one pay out; so, if you have children and something happened to both of you, they would receive a single lump sum.

If you aren’t covered

If one of you died, would the other be able to pay the mortgage and household bills, or cover childcare costs, alone?

A life insurance policy pays out a lump sum to your dependents if you die within the term of the policy.

There are two other main types of protection insurance.

Critical illness helps protect you against the financial impact caused by serious illnesses, such as cancer or a heart attack, so you can concentrate on getting better.

Income protection, meanwhile, can help provide you with a regular income to replace some of your earnings if you can't work because of illness or injury.

It’s worth noting that the younger you are when taking out cover, the cheaper your premium is likely to be.

Investing in your goals

The chances are you’ll have many goals, both short and long term. Whatever they are, reaching them will largely depend on one thing: financial planning.

First things first, though: before you start saving for something years down the line, it is wise to take a couple of initial steps.

If you can, before saving or investing, it might be worth building up a financial buffer (sometimes called an 'emergency fund').

This would cover life's little inconveniences - a broken boiler, say - so you don't have to tap into your savings or investments to pay for them.

In fact, the Money Advice Service - set up by the government - recommends you should have 'emergency savings' equivalent to three months' essential outgoings. 

Likewise, if you have any lingering debts, such as store or credit cards, you might want to get these cleared first.

If you are planning on saving or investing, you are now in a position to start putting money aside.

For longer-term goals (those you see achieving in at least five years' time), such as preparing your dream retirement, you could think about investing.

One way of doing this is to open a Stocks and Shares ISA. It has the potential for higher returns than traditional cash savings, and any investment growth or interest you earn is free of tax.

Investing isn’t without an element of risk – your investment could fall and you may not get back the full amount you invested.

But by investing for a minimum of five years, your investment has longer to recover from any potential bumps in the market.

What now?

Find out more about Zurich life insurance, and about the Zurich Stocks & Shares ISA.

Sources:

https://www.moneyadviceservice.org.uk/en/articles/emergency-savings-how-much-is-enough#how-much-should-i-save

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