5 Questions Newlyweds Have About Life Insurance

There are many exciting elements to being a newlywed, especially when you’re just leaving the thrill of a wedding and honeymoon. You may be looking forward to settling into a new routine while also being aware that you have certain plans to make for the future.

While it may not be the first thing on your mind as a newlywed, creating a solid financial plan for your future should be an important item on your to-do list. Additionally, your financial strategy needs to include risk planning — and thinking about what could go wrong, even if it’s uncomfortable. This often means taking out life insurance.

Five life insurance questions asked by newlyweds

Newlyweds, young or old, financially established or just starting out, often have similar questions about their new marital status. So let’s look at five common questions newlyweds have about life insurance.

  1. How Much Life Insurance Do We Need?
  2. What life insurance do we need?
  3. Do we need life insurance if we don’t have children?
  4. Can we afford life insurance?
  5. What is life insurance for?

How Much Life Insurance Do We Need?

Understanding how much life insurance you need for your new married life depends on a few important things.

  • First, it depends on all your financial obligations. If you or your spouse died, what debts and responsibilities would you leave behind for your spouse? Making sure those expenses and obligations are covered is a good first step in deciding how much life insurance you need. Your list might include a mortgage, car payments, student loans, credit cards, or other personal debt.
  • Next, you must decide how much money your spouse depends on They bring home every year. Does this income have to be replaced when you die? Both partners must make this calculation for the purchase of their own policies to protect the other. Your daily expenses should factor into your calculations along with monthly, yearly, and random financial events.
  • Finally, you may need to plan for the future with your life insurance. You and your spouse should consider any current or future dependent expenses (such as children) and any retirement savings that you could lose if your spouse dies.
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For help in finding a more defined number, visit our Life Insurance Needs Calculator here.

What kind of life insurance do newlyweds need?

The type of life insurance you need as a newlywed will depend on your budget and the extent of your coverage. You may only need insurance to cover funeral expenses and necessary living expenses in the event of the death of a partner. However, you may also need more sophisticated financial planning.

You and your partner can choose from many different types of life insurance products from many different insurance companies to meet your individual needs. However, most can be defined as either term or permanent life insurance.

  • expression is a life insurance policy that you take out for a specific period of time. If you die during this time, your spouse (or other beneficiary) will receive a certain amount of money as a death benefit. Here you can find out everything about term life insurance.
  • Continuous Life insurance does not end at a specific time such as term. It covers you for the rest of your life and not only offers a death benefit but can also offer what is known as a cash value. Although you may pay more for a permanent policy, there are still affordable options – even for young, newlyweds. You can read more about permanent insurance here.

Do we need life insurance if we don’t have children?

A common reason why couples take out life insurance is to continue caring for their children when their financial contributions are no longer in play. So what if you don’t have children? Do you still need life insurance?

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The answer is usually still yes. Let’s consider two cases.

No kids now, but maybe later?

  • If you don’t have children now but might want to have children in the future, getting pre-children life insurance is still a good idea. First off, life insurance rates tend to be cheaper the younger you are. So if you buy a policy now, your rates could stay low for longer.
  • In addition, the ability to purchase life insurance depends on whether you are healthy enough to purchase it. Buying a policy now ensures that in the event of a future health event that makes you uninsurable, you have addressed that risk and are already covered.

No kids now… and probably never.

  • If children aren’t in your plans, you probably still need life insurance to cover your partner—at least until you and your partner are financially secure enough and have enough savings to cover all of your financial needs, should either or both of you persist should. You may also want life insurance for other family members who depend on you, or maybe even for philanthropic reasons.

Can we afford life insurance?

The world of life insurance is big and there is a policy for almost everyone. Most couples are surprised to learn that life insurance is cheaper than they might think. According to recent research, 8 in 10 millennials overestimate the cost of life insurance, many as much as 5 times the actual cost.

First, decide how much life insurance you think you need. Then, if you can’t find a policy with a premium tier in your budget, try starting a little lower and increasing coverage over time. The saying is true: Some Life insurance is better than none.

What is life insurance used for?

For newlyweds, life insurance is another way to show your partner how much you love and care for them. You offer them a way to get on with their lives and take care of themselves and others when you die. The burden of grief is enough without the weight of the financial burden.

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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 offers more than just a death benefit. If you’re looking for a permanent policy, your life insurance could offer cash value, critical illness coverage, or even long-term care benefits.

Conclusions

Getting caught up in the whirlwind of newlywed life is certainly fun, but remembering to lay a solid financial foundation will be a worthwhile addition to your plans. Now is a good time to make sure you and your spouse have all of your life insurance questions answered by speaking to an experienced agent. Additionally, we recommend this article if you have additional questions about purchasing life insurance.

We wish our newlyweds good luck in their new life together!

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