Young couples have so many questions about the future when they first become newlyweds. It can be an exciting yet tumultuous time for both individuals as you get used to new daily routines and plan your new lives together.
While it may not be the first thing newlyweds think about right after they say their vows, life insurance is an essential topic that all newly married couples should discuss. It can help pave the way for your dreams for the future, whether that involves starting a family, beginning a new career, saving for retirement, or all of the above.
If you have questions about your new marriage insurance policy, we have answers. Here are five of the top questions newlyweds often have about life insurance
What is Life Insurance Used For?
Young couples who are just getting started may think that it is too early to even think about life insurance. They may have the same assumptions many other people have when it comes to life insurance, such as they are too young to take out a policy or they will wait until they have children.
But in reality, the earlier you take out a life insurance policy, the better off you will be. And there is so much more to life insurance than paying for funeral and burial costs. Therefore, a newlywed insurance discussion should be planned soon.
For the newly married couple, taking out a life insurance policy together is a way to show your partner how much you care for them. You are providing them with a way to continue their current lifestyle in the event of your death. The horrible burden of grief and loss is enough to deal with without having the weight of financial stress on your shoulders as well.
Additionally, your life insurance policy can also be used as a helpful financial tool that you can use to plan for your future together. Your agent can help you determine which type of life insurance policy is best for you and which policies can provide you with a cash value that you can use anytime to help out with major purchases.
You can also find a life insurance policy that offers critical illness provisions and other long-term care benefits to ensure your spouse is financially secure no matter what the future holds.
How Much Life Insurance Will We Need?
Knowing how much life insurance you will need depends on several factors.
First, you must consider all your current and potential financial obligations. If you or your partner die, what debts and other finances would you leave behind for the other to deal with? You can ensure those expenses are covered with the right life insurance policy. Those obligations could include car payments, student loans, a mortgage, or credit card debt.
Next, you need to decide how much of your income your spouse depends on each year. Will that income need to be replaced in the event of your death? Both partners should make these calculations or discuss these needs with their agent before they take out an insurance policy to guarantee they get enough coverage.
And finally, you should always plan for the future when buying a life insurance policy. You may not have many financial obligations currently, but what about five to ten years from now? You may take out a student loan if you plan to return to school or decide to have children. You and your partner should take all of these things into consideration. Fortunately, your insurance agent is trained to help with these decisions.
What is the Best Life Insurance for Married Couples?
There is not one life insurance type that is better or worse for every couple. It all depends on your specific needs and wants.
The type of life insurance you choose as a newly married couple will depend on your budget and what you want to get out of your new policy. You may simply want an insurance plan that will cover the cost of a funeral and other expenses. Or you may wish for a more sophisticated policy to help you financially throughout your life.
There are a few different types of life insurance policies that offer a broad range of benefits and are available to you in different price ranges, like term life insurance for couples. So, you will find the right one for you and your partner.
Do We Need Life Insurance If We Do Not Plan on Having Children?
One of the main reasons people purchase life insurance in the first place is so that their loved ones do not have to cover the cost of their final expenses. That includes their surviving spouse or their children. But if you are not planning to have children, do you still need life insurance?
In most cases, yes. You will likely still have debts to pay after you die, and those will still need to be paid. Also, you may still want to have children in the future. And purchasing a life insurance policy early in life can help you get the most affordable premium.
Term vs. Permanent Life Insurance: What is the Difference?
Term and permanent life insurance are the two main types of policies.
Term life insurance is a policy you purchase for a specific time frame. Your beneficiaries will receive the death benefits if you die during that time. There are no cash value benefits with a term life plan. However, they tend to cost much less per month than a permanent life plan. Term life policies are available to purchase for 5, 10, 15, 20, or 30-year terms.
Permanent life insurance does not end after a specific time like term life. It will continue to provide you with coverage throughout your entire life. And it does not just provide your beneficiaries with a death benefit. These policies also have a cash value that you can borrow from, similar to a bank loan.
Even though permanent life insurance policies can be more expensive, they offer many more benefits than term life policies. And if you purchase one when you are young, you can lock in a more affordable rate.
Contact Hometown Life Insurance for all Your New Couple Insurance Needs
If you are considering buying a life insurance policy, we are here to help with all your newlywed insurance needs. Get in touch with the experts here at Hometown Life Insurance today for help choosing the right policy that suits your and your spouse’s needs.
We look forward to assisting you!
