Here Come the Benefits? Marriage and Its Effect on Employee Benefits and Insurance

Flowers in bloom, birds chirping, and the 10-day forecast doesn’t show a single day of rain. These are all signs that wedding season has arrived. Beyond the excitement and celebration, marriage brings life transitions that require thoughtful planning. Two often overlooked critical areas that deserve a second look are employee benefits and insurance.

In Sickness and In Health…Insurance

Selecting the lowest-cost premium option from an employer’s health insurance plan may end up costing a couple more money in the long run. Does either spouse have a medical condition that requires frequent doctor visits? Are you planning to have children in the near future? Does either spouse prefer to visit a specific doctor or visit a certain office? These are all important questions to discuss, as they can significantly affect the cost and coverage of the health insurance plan you choose.

If both spouses are covered under a high-deductible health plan (HDHP)¹, they are eligible for family coverage through a Health Savings Account (HSA).² Even if one spouse is not employed, as long as both are covered by the HDHP, the couple can contribute up to the annual family maximum of $8,550 to the HSA according to 2025 Internal Revenue Service (IRS) rules. Additionally, each spouse aged 55 or older can contribute an extra $1,000 per person as a catch-up contribution.³

What about being on separate insurance policies? In some cases, this can make financial or medical sense. For example, one spouse with low medical needs might choose a high-deductible health insurance policy and contribute to an HSA. Meanwhile, the other spouse, who anticipates more frequent medical care, could opt for a plan with a lower out of pocket maximum, even if it is not HSA eligible.

In this scenario, the spouse with the HSA eligibility can utilize their HSA account to pay for qualified medical expenses for the other spouse, even if they are on different plans. However, because this setup does not qualify as family coverage under the HDHP, the HSA contribution limit is capped at $4,300 for individual coverage (plus any applicable catch-up contributions).³

‘Till Death Do Us Part

Life insurance is a powerful tool for managing the financial risk of an unexpected death. For some newlyweds, life insurance can protect essential income needed to reach and sustain retirement goals. It can also ensure that large financial obligations, such as a mortgage, can be paid off if one spouse passes away.

In addition, life insurance can support other important goals such as covering education expenses or providing funds for funeral costs. While the idea of losing a spouse is difficult to consider, having this conversation early on is essential to ensure proper protection and peace of mind. Each couple’s situation is unique, so it’s important to review specific life insurance needs with your financial advisor.

Don’t Forget the Ring

Finally, don’t forget to schedule an endorsement on your homeowners or renters insurance policy for the engagement or wedding rings. Standard policies typically cap jewelry theft coverage at $1,500.⁴ By scheduling an endorsement, you can increase this limit to properly protect the full value of your rings, fitting coverage as snugly as the rings themselves.

Jewelry and similar personal property are generally listed under section C of the homeowners insurance policy. While you’re reviewing coverage, also check your policy adequately protects any new items from your registry.

Whether you’re eagerly anticipating your own special day or celebrating as a cherished guest this wedding season, take time to consider the financial changes that may come with this life transition. As always, consult with your financial advisor, or refer a couple who may have deeper questions about their life transitions and how to effectively plan around them.

Sources:

1. investopedia.com: High-Deductible Health Plan (HDHP): Definition, Coverage, and Costs
2. investopedia.com: Health Savings Account (HSA): How HSAs Work, Contribution Rules
3. IRS: 2024 Publication 969
4. USA Today: Do You Need Jewelry Insurance?

Disclosures:

Apella Capital, LLC (“Apella”), DBA Apella Wealth is an investment advisory firm registered with the Securities and Exchange Commission. The firm only transacts business in states where it is properly registered or excluded or exempt from registration requirements. Registration with the SEC or any state securities authority does not imply a certain level of skill or training. Please note the material is provided for educational and background use only. Moreover, you should not assume that any discussion or information contained in this material serves as the receipt of, or as a substitute for, personalized investment advice.

No current or future client should assume that any discussion or information contained in this material serves as the receipt of, or as a substitute for, personalized investment advice. As with any investment strategy, there is the possibility of profitability as well as loss.

Apella Wealth does not insurance or tax advice and nothing either stated or implied here should be inferred as providing such advice.