Although it may not be the first thing on your mind as a newlywed, a strong financial plan for your future should definitely be on your to-do list. If you and your spouse count on each other's income to support your lifestyle, you should absolutely consider life insurance.
Here are some of the most common questions newlyweds have when it comes to getting started with life insurance:
How much life insurance do we need?
What kind of life insurance do we need?
Do we need life insurance if we don’t have kids?
Can we afford life insurance?
What is life insurance used for?
How Much Life Insurance Do We Need?
This mainly depends on your financial obligations. If you or your spouse were to die, what debts and responsibilities would you each leave behind? Making sure those expenses are covered is a good first step to decide how much life insurance is needed. This includes stuff like your mortgage, car payments, student loans, credit cards or other personal debts.
What Kind of Life Insurance Do Newlyweds Need?
You and your partner can choose from many different types of life insurance products, however, most can be defined as either term or permanent life insurance.
Term is life insurance that you buy for a specific period of time. If you die during that time, your spouse will receive a specified amount of money as a death benefit.
Permanent life insurance will not end at a certain time like term. It continues to cover you through your life, and not only provides a death benefit but can also provide what is known as cash value. Although you may pay more for a permanent policy, there are still affordable options available—even for young, just-starting-out newlyweds.
Do We Need Life Insurance If We Don’t Have Kids?
If you don’t have kids now but may want them in the future, buying life insurance before is still a good idea. Life insurance rates are typically more affordable the younger you are. So, getting a policy now could keep your rates lower for longer.
Additionally, the ability to buy life insurance depends on you being healthy enough to get it. Buying a policy now ensures that if you have a future health event that makes you uninsurable, you will have addressed that risk and already be covered.
Can We Afford Life Insurance?
Most couples are surprised to learn that life insurance is more affordable than they might think. First, decide how much life insurance you think you need. Then, if you can’t find a policy with a premium level in your budget, try starting a little lower and scaling up coverage over time. "Some life insurance is always better than none"!
What is Life Insurance Used For?
For newlyweds, life insurance is another way of providing financial support for your spouse to carry on their life and take care of themselves if you die. Additionally, you can also use life insurance as a financial planning tool. Working with a licensed insurance agent, you can design a life insurance policy that provides more than just a death benefit. If you are looking into a permanent policy, your life insurance could provide cash value, a critical illness provision, or even long-term care benefits.
Conclusion
The benefits of having life insurance truly outweigh any cons, and knowing you can continue to financially live your lifestyle if something were to happen to you or your spouse, is truly the greatest gift you could give!