When a couple makes plans to unite and get married, they should set aside time to consider their insurance needs. It’s important to create a financial safety net for the future, which is what a life insurance policy does.
Here’s a look at what newlyweds need to know before enrolling in a life insurance policy together.
How much life insurance does a couple need?
A couple should determine life insurance needs by evaluating each other’s financial responsibilities. Take a look at debt, income, and the value of each person’s assets. Then determine how much income each individual needs if the spouse dies. It’s also important to consider retirement income when planning life insurance. The amount of life insurance coverage necessary is different for every couple.
What kind of life insurance policies suit newlyweds?
The two main types of life insurance are term life and permanent life. Just as the names imply, a term life policy is only for a certain period, while a permanent life policy is good for the policyholder’s lifetime.
Term life is more popular with young people who don’t have children because it’s more affordable. But permanent life costs a little more for families to provide extensive coverage. A permanent plan provides a death benefit and cash value, while a term plan only provides a death benefit and doesn’t include cash value that allows for withdrawals.
Is life insurance necessary for a couple without kids?
You don’t need kids to get the benefits of a life insurance policy. Your spouse can still use the coverage if something happens to you. Even if you don’t have kids when signing up for a policy, you may decide to have them later. It’s a good idea to get life insurance when you’re young and healthy so that if you become unhealthy, you’re still covered. It’s difficult to get life insurance when you have medical problems.
Is life insurance affordable?
The insurance industry is so vast that everyone has a life insurance policy. It’s usually more affordable than young people imagine. About 80 percent of millennials in a recent survey have overestimated the costs by as much as five times.
Keep in mind that the cost of a life insurance policy for a couple is usually customized based on their current financial situation. Many married people start with a small policy, then scale up as time passes, and each individual earns more money.
What is life insurance used for?
One of the best gifts newlyweds can give each other for planning a brighter future is a life insurance policy. It shows how much one cares for the other and helps plan for financial stability in case a spouse dies. The policy covers a death benefit in which the policy pays the funeral and final expenses.
Unlike a term life plan, a permanent life plan provides cash when you need it. The account grows in cash value the more you put into it, as it also grows with market investments. You can withdraw this cash when you need it or borrow against it. Many families benefit from a permanent plan because it serves as an emergency fund when you need instant cash during the policyholder’s life.
Get the insurance you need with Leland Smith!
It’s necessary to resolve all your questions before investing and if you are ready to invest in a life insurance plan for the future, reach out to us at Leland Smith Insurance. You can fill out our contact us form, and our representatives will get back to you shortly.