Just Married? Now is the time to get life insurance.

Key Takeaways:

1. Life insurance protects your family from financial stress in your absence, allowing your spouse to handle financial responsibilities effectively.
2. A life insurance policy supports your long-term plans, whether it’s buying property, starting a family, funding education, or preparing for retirement.
3. Policies are more affordable when you are young and healthy, making it the right time to secure coverage.
4. It is important to regularly review your life insurance policy to make sure it matches any changes in your life circumstances.

Four Reasons Why Newlyweds should get Life insurance.

Every family is different, and there are many reasons to get life insurance. The most common reasons to get life insurance are listed below:

1. Stress relief

Life is unpredictable, and while we hope for the best, planning for the unexpected is vital. Life insurance provides you and your spouse with peace of mind knowing that if anything were to happen to either of you, the financial burden would be eased. Funeral costs alone can be a significant expense, averaging around $8,000. Still, life insurance benefits can cover these expenses and more, allowing you both to focus on healing and rebuilding without financial strain.

2. Ability to stay in your home.

As you start your life together, you might consider buying a home. In such a scenario, life insurance becomes even more critical. If one of you were to pass away, having life insurance would ensure that the surviving spouse can continue to live in the home without worrying about mortgage payments or finding a new place to live during a difficult time.

3. Protect long-term plans

Life insurance should be a top priority if you are considering starting a family. The death benefit from a life insurance policy can cover ongoing expenses like mortgage payments, your child’s education, and even your retirement. Knowing that your loved ones will be financially secure regardless of the circumstances can bring immense comfort and confidence.

4. Affordable Coverage for Newlyweds

Life insurance policies are generally more affordable when you’re young and healthy. Delaying getting life insurance may lead to higher costs, especially if any medical conditions develop later in life. By securing life insurance now, you not only enjoy cheaper premiums but also avoid the need for additional health examinations.

Which insurance is better for newlyweds?

Two common types of life insurance are Term Life Insurance and Permanent Life Insurance. Term life insurance offers a death benefit for a specific term (usually between 5 and 30 years), while permanent life insurance covers you for your entire life and accumulates cash value over time. While term life insurance is generally more affordable, the choice depends on your specific needs and financial goals.

There are two main types of life insurance policies – Term Life Insurance and Permanent Life Insurance. Each type offers unique features that cater to different needs and financial goals.

1. Term Life Insurance:

   • Provides coverage for a specific term (usually between 5 and 30 years).
   • Often more affordable than permanent life insurance.
   • Ideal for newlyweds seeking temporary coverage for specific financial responsibilities, such as a mortgage or college tuition.

2. Permanent Life Insurance:

   • Provides lifetime coverage and accumulates cash value over time.
   • Offers flexibility with access to the accumulated cash value as a living benefit.
   • Suitable for couples looking for lifelong protection and potential cash value growth.

Remember that most companies will allow you to convert your existing term policy to a permanent one before your policy expires (Consult with a licensed Policy Engineer to find the best term policy conversion options).

Once you know which type of insurance fits your situation best, your next step is to calculate how much you need. 

How Much Insurance to Purchase?

The ideal coverage amount varies from family to family, depending on individual goals and obligations. When calculating your coverage needs, consider factors such as outstanding debts, mortgage, children’s tuition, and other financial responsibilities you’d like to meet if you were no longer there. Use our website to calculate your coverage amount accurately and compare policies from different companies to find the best fit for your needs.

The ideal coverage amount varies from family to family, depending on individual goals and obligations. To calculate your coverage needs:

1. Needs-based:

   • Determine how much your loved ones would need to survive financially if you were no longer there.
   • Consider outstanding debts, living expenses, and education costs.

2. Goals-based:

   • Calculate the amount required to help your family achieve their financial goals, such as homeownership or retirement savings.

3. Legacy:

   • Consider what you would like to leave behind for your family’s future.

On our website, you can calculate how much life insurance you need to cover all your finances. All you need to have to calculate your coverage amount are the financial obligations you would want to meet if you died and the financial resources you already have. Factors such as the amount of debt you have, your mortgage, and the tuition for your children play a role. Once you know how much you need, you can compare the policies of different companies on our website. Click here to start your legacy planning today!

Beneficiary Designations and Contingent Beneficiaries:

Selecting beneficiaries is an essential part of planning for life insurance. It’s important to choose your beneficiaries carefully, and it’s wise to include contingent beneficiaries in case the primary beneficiary passes away before you.

Consideration for Stay-at-Home Spouses:

Life insurance is not only essential for the breadwinner but also for the stay-at-home spouse. The death benefit can cover the valuable services the stay-at-home spouse provides, such as childcare and household management. This ensures the surviving spouse has the necessary support during challenging times.

Customizing Policies with Riders:

Life insurance policies often come with additional options called riders. These riders enhance the policy’s features and can be customized to fit your specific needs. Popular riders include:

1. Accelerated Death Benefit Rider:

   • Allows the policyholder to access a portion of the death benefit if diagnosed with a terminal illness.

2. Waiver of Premium Rider:

   • Waives future premium payments if the policyholder becomes disabled and unable to work.

3. Return of Premium Rider:

   • Refunds the premiums paid if the policyholder outlives the policy term.

The Importance of Regular Policy Reviews:

Life is full of changes, and as your life evolves, so should your life insurance policy. Major life events such as getting a new job, buying a home, or starting a family should trigger a review of your insurance coverage. Remember to update your beneficiaries if you ever get divorced or married again.

Is Life Insurance through your employer enough?

While your employer may offer group life insurance, it is often insufficient for comprehensive coverage. Group insurance typically limits the coverage amount and might only be valid while you are employed. To ensure adequate protection, consider supplementing your employer’s policy with an individual life insurance policy. This approach ensures your family’s financial security, regardless of your employment status.

• Most group insurance will limit coverage to up to 3 to 5 times your salary.
  It’s only valid while still being employed.
• If you added supplemental life insurance through your employer and your death benefit is over $50,000, part of the payout could be taxed.
• Your life insurance policy will also be canceled if you get fired or change jobs.
• Adding an individual life insurance policy outside your employer will give you peace of mind. Especially if something happens to you or your spouse in-between jobs or if your family needs a higher death benefit to survive financially.

Review your insurance over time.

Life is full of changes, and as your life evolves, so should your life insurance policy. Major life events such as getting a new job, buying a home, or starting a family should trigger a review of your insurance coverage. Remember to update your beneficiaries if you ever get divorced or married again.

Other important financial topics to put on your to-do list when getting married!

Click here to plan your financial freedom with myBlocks.

1. Disability income insurance for your paycheck
   – Not Protecting your paycheck from unexpected income loss can lead to financial stress.
   – If you become too ill or injured to work, disability insurance will cover a portion of your income.
   – Talk about combining finances or keeping them separate: joint versus individual accounts
   – combining assets
   – filing taxes jointly versus separately
2. Budget
   – write down all expenses
   – decide who should pay what.
   – try to revisit your budget together every six months
3. Goals
   You should create a plan to help you prioritize and reach your goals:
   – Eliminate debt
   – Save up for a home
   – maximize your retirement and tax benefits
4. Emergency fund
   – For unexpected costs
   – In case you lose your income
   – Medical emergencies
   – Child/pet emergencies
   – Sudden unexpected car breakdown or accident
5. Prepare A Will/Trust
   – Ensure that your investments and assets will be assigned to the right person and in the correct order.