Dear Newlyweds, Partners, Parents, Brides, and grooms to be!
Getting married, moving in together, and having a baby on the way are all exciting life events. Life insurance is probably not the first thing that comes to mind during these exciting life changes. However, it is crucial to get life insurance to protect your future, prevent financial stress, and save money in the long run. Make sure your family can continue to live your lifestyle financially. This blog will give you an overview of the importance of having life insurance and financial tips to protect your future.
- Life insurance could protect your family from financial stress if something were to happen to you. Your spouse would have to meet all the financial responsibilities.
- A policy gives support for your long-term plans, like buying property or having children, paying for tuition, or retirement.
- The policies are cheaper when you are young and healthy.
- It is important to review your policy as life changes
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
If something happens to your partner or spouse, life insurance can take away the financial stress it may leave. Think about funeral costs and your outstanding mutual debts. The average funeral nowadays is $8000. The paid-out benefit gives you more space and time to focus on what is most important: taking care of yourself and your family, who has to keep going. It will also give you time to grieve and additional time to deal with funeral arrangements.
2. Ability to stay in your home.
Even before having children, life insurance could be something to consider. Are you buying a house, and do you want your spouse to be able to stay in that house if something were to happen to you? Most likely, the answer is yes. How awful would it be if you had to stress about mortgage payments/rent or having to find a new place to live while grieving?
3. Protect long-term plans
Life insurance should be on top of your priority list if you are thinking about having children or already having children. Life insurance can give you peace of mind. With a life insurance death benefit, you can pay for your family’s bills, the mortgage, your child’s tuition, and your retirement.
Life insurance policies are cheaper when you are still young and healthy. If you decide to wait with life insurance, your policy could become more expensive since the chances of developing a medical condition later in life are bigger. Your policy could be much more than if you got life insurance when you were young and healthy. It also prevents you from having to take an additional health exam.
Which insurance is better for newlyweds?
The two most common policies are Term- life insurance and permanent life insurance. Term life insurance offers a death benefit for a fixed amount of time (mostly between 5 and 30 years). Permanent life insurance covers you for your whole life and accumulates cash value that can be accessed as a living benefit at any time while you are still alive. Term life insurance is cheaper than permanent life insurance. There are still many people who overestimate the cost of life insurance. Term life insurance could be as little as $20 a month. That’s equal to 4 coffees at Starbucks.
Keep in mind; 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 be selective and compare different insurance companies.
By doing this, you will get the coverage you need at the best price.
* Make sure to review the Life insurance company ratings to check whether those companies can pay for future claims.
How Much Insurance to Purchase?
This depends on your lifestyle or your future goals. Every family is different. Life is not a one-size-fits-all proposition, and neither is your insurance policy.
The amount you need can be:
- Needs-based. How much would my loved ones need to survive financially?
- Goals-based. How much would my family need to reach their financial (tuition, retirement) goals?
- Legacy. What are you hoping to leave behind for your family?
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!
Is Life Insurance through your employer enough?
Most likely, your employer offers you group life insurance. However, this type of insurance is probably not enough.
- 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 of your employer will give you peace of mind. Especially if something would happen 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 changes, and so should your life insurance policy. You should review your policy in many different life events: new job, mortgage, or having children.
- If you get divorced or married again. Don’t forget to update your beneficiaries or get a new policy with your spouse.
- Want to review your current life insurance policy? Click here!
Make life insurance a priority.
Now you know why Newlyweds should get Life insurance. Policy Engineer is contracted with over 50 of America’s top insurance carriers and can help enroll you in a wide range of programs. Compare coverage and pricing with different companies to ensure you never overpay for the same benefits. Make sure your family can continue to live your lifestyle financially.
Other important financial topics to put on your to-do list when getting married!
Click here to plan your financial freedom with myBlocks.
- 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
– write down all expenses
– decide who should pay what.
– try to revisit your budget together every six months
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
- Emergency fund
– For unexpected costs
– In case you lose your income
– Medical emergencies
– Child/pet emergencies
– Sudden unexpected car breakdown or accident
- Prepare A Will/Trust
– Ensure that your investments and assets will be assigned to the right person and in the correct order.