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Why Life Insurance is a Necessity for Newly Married Couples
Young married couples venture out in the world together, planning everything as a couple now rather than as individuals. Everything in the relationship is a shared venture. Earnings go toward building the family's future, and losses are shared as well. Being young and healthy, facing life with hope and enthusiasm for the shared future, can often obscure the reality that bad things can happen to good people. Being prepared for possibilities is both wise and selfless. Life insurance makes it possible for a surviving spouse and children to be able to go on alone without a financial burden being added to the loss.
What Type of Life Insurance is Best For Newlyweds?
The first few years of life together as a family are when education is being finished and a home is being established. There are jobs and school responsibilities that lead to careers. Renting soon turns into a mortgage. Often, a baby comes along right in the middle of the really hectic time of young married life. Expenses are tough to budget, and economic ups and downs alter the family savings plan over and over again.
The best life insurance type for most young couples is cheap term life insurance. Term policies are for a set benefit that exists for a set amount of time. The goal is for investments and savings to build over the years with the term insurance being there in case one or possibly both partners in the marriage should die. The insurance provides for both immediate and long term needs.
The financial goals in a marriage are to work toward providing a stable home along with savings and investments that will grow to become sufficient to meet long term goals and retirement needs. These goals take years to attain, and the loss of one or both partners is usually financially catastrophic without adequate insurance. The loss of one partner can result in the surviving partner losing the home to foreclosure and the inability to pay the bills due to one income being lost.
Any children suffer from the loss of one or both parents. It is bad enough to lose a parent. The facts are that the financial losses can result in the dashing of dreams of getting a good education. The loss of both parents who do not leave behind a means to provide care for their children can result in a much different lifestyle for the children than what the parents planned.
Term life is better than other insurance products for young couples who have well thought out financial goals and career plans. Term offers more coverage for lower premiums. Other products are investment oriented and may not fit in with either the long or short term plans the young couple has for investing their money. The lower annual premium rates for term get the young couple higher amounts of benefits for the annual premiums.
Figuring Coverage Amounts
The actual coverage amounts should vary according to need and the budget. In a marriage, there may be a disparity in the earning potential expected from either partner. One partner may decide to invest more in rearing children and less in earning income. The other partner may be responsible for a larger percentage of the responsibility of earning income the family needs to survive. The higher income earner should be insured for a correspondingly higher amount of insurance.
In the beginning of the marriage, the insurance amounts should take into consideration major expenses incurred such as mortgages and even automobiles. As savings increase and as the mortgage is paid down, the amount of term insurance can be adjusted. Always plan for the educational expenses of any children. Loss of income is a big consideration. A spouse passing away at a young or at any age causes many years of lost income potential. The amount of insurance needed diminishes as retirement funds and savings builds up. A couple in middle age usually needs much less term life insurance than a couple recently married.
Life insurance buys peace of mind in an uncertain world. It makes it possible for dreams of owning and keeping a home along with dreams of education and maintenance of health insurance to be possible for the surviving spouse or children. Life insurance is prudent planning that considers the outcome of those left behind should tragedy strike. No one wants to focus on such things happening. Life insurance removes the nagging what-if thoughts. A good term policy that is maintained as goals are being pursued by the new family is a proactive measure against loss of income earning potential of both partners in a marriage.
It is a simple process to get a term life insurance quote customized to your family's unique needs. Just fill out the quote request form and a trained agent will assist you in finding a policy that suits your family best.