Marriage is one of life’s greatest milestones, changing the lives of both you and your beloved. Whereas before, you were just responsible for just your life. Now you’ve also got to think about your spouse.
Sadly, death doesn’t take a break. It can happen to anyone, anytime. What if the worst were to happen, and you passed away suddenly? How would it affect your husband or wife?
For some couples, this may not be an issue, especially if they have savings to fall back on. But for others, it could see their loved one left with a huge financial burden.
One solution that’s been tried and tested is life insurance. Though some see it as an unnecessary expense, the truth is it can be a godsend in difficult times. So if you’ve just tied the knot and wonder if it’s something you need, read on to find out why it might be a good idea.
1. Why would I need life insurance?
Naturally, we all have different circumstances in life. Some marry young, in which case life insurance can quickly become a priority, especially for if they have children.
For others, who get married later in life, they may not have needed cover before, but now that they have a spouse to think about, it may become all the more important. Here are just a few reasons you could need life insurance:
- Your spouse or family are dependent on your income.
- You have joint debts or a mortgage that would be difficult for your spouse to pay off alone.
- You have children who rely on your income for their upbringing and education.
- You want to ensure your spouse is financially secure in the event of your passing.
Regardless of your situation, if you have dependents, it’s essential to put a plan in place, should something happen to you. This could be life insurance, pension plans, or even setting up a trust fund. Whatever it takes to ensure they are protected in such a difficult time.
2. What are the benefits of having life insurance?
The benefits provided by owning life insurance cover cannot be understated. Without it, you run the risk of leaving your spouse unprotected in the event of your death.
In short, here are a few reasons why life insurance is a good decision for married couples:
- To replace lost income: If you or your spouse were to pass away, the loss of income could be devastating. All of a sudden, they would be having a slew of bills to pay. However, the payout from a life insurance policy could be used to supplement this loss of income.
- To pay off debts: You may or may not already own a home, which means you’ll likely have a mortgage. If you were to pass away, your spouse may struggle to keep up with the payments. Life insurance can provide the funds needed to pay off any outstanding debts, including the mortgage.
- To cover funeral costs: Funerals can be expensive, at what is already an extremely difficult time. Thankfully, life insurance can help cover these costs so that your spouse doesn’t have to worry about how they will pay for your send-off.
- To provide for your children: If you have kids, life insurance can be used to see they are taken care of financially. Whether it’s covering their education costs or providing for their day-to-day needs, having cover can ease the burden on your spouse in raising them alone.
- To secure your spouse’s future: Ultimately, life insurance provides peace of mind. Knowing that your spouse will be financially secure if something were to happen to you can be a huge relief. It can give them the stability and security they need to move forward after such a tragic event.
3. Which type of cover should I choose?
There are several types of life insurance cover available, each with its own benefits and drawbacks. The most common types of life insurance include term life insurance, whole life insurance, and universal life insurance.
Term life insurance
Term life insurance provides cover for a specific period of time, usually ranging from 10 to 30 years. Because cover can expire, it’s typically more affordable than other types of life insurance.
It can be useful for covering debts like a mortgage, or if you want protection until your kids are grown and no longer dependent on your income.
Whole life insurance
Whole life insurance provides cover for your entire lifetime, as long as you continue paying the premiums. As cover is permanent, it can be more expensive than term life insurance but has the added bonus of lifelong protection.
In essence, it takes into account a bigger picture of your financial needs, providing a safety net for your spouse even after you’re gone.
Joint life insurance
For married couples, joint life cover is a good choice for protection. With this, both you and your spouse are protected under one policy. This spares you the cost and hassle of taking out a separate policy each. It typically pays out after one of you dies, leaving the other with a lump sum to cover any financial obligations or needs.
Essentially, joint policies offer couples the best of both worlds. Providing the security of individual cover for each spouse, while also ensuring that the surviving partner is taken care of financially.
Conclusion
As a newlywed, there’s a whole host of things to consider. From looking to buy your first home, to starting a family, there’s so much to think about. Overwhelming, is certainly one way to put it.
So, to answer the question of whether or not life insurance is a good choice for newlyweds, the answer is ‘yes’. It helps you plan for the future and ensures that your spouse is protected in the event of your passing.
Whether it’s to pay off debts, cover funeral costs, provide for children, or secure your spouse’s future, life insurance can provide the financial security needed during a difficult time.
