November 27, 2021
  • November 27, 2021

What Newlyweds Need to Know About Life Insurance

By on November 2, 2021 0
NEW YORKNovember 2, 2021 – (

iQuanti: Buying a life insurance policy is probably one of the last things most couples want to think about after saying “yes”. But, somewhere between the honeymoon stage and baby fever, newly married couples need to make sure that a plan is in place for the future they are creating for themselves.

Why Newlyweds Need Life Insurance

It is important that married couples consider purchasing a life insurance policy to protect their future, regardless of their age. Getting married means that another person should be responsible, and couples should ensure that their spouse is financially supported in the event of sudden death from illness or the like.

Newlyweds with life insurance can ensure that their spouse can support themselves and their children and maintain the same lifestyle that they have always maintained, including car payments, mortgage payments and l ‘education.

When to buy life insurance

It is a common misconception that life insurance should only be purchased if and when a couple has children. Life insurance is not only meant to protect children, but can also affect the remaining spouse.

The best time to purchase life insurance as a couple is when the finances are combined before or after the wedding day. Examples like making a down payment on a new home, opening a joint bank account, buying a car, starting a business, or buying a commercial property are all examples. good reasons for newlyweds to establish a life insurance policy.

Types of life insurance policies for honeymooners

There are two types of life insurance policies that can benefit honeymooners depending on their financial goals: term life insurance and whole life insurance.

Term life insurance: This limited-term life insurance policy provides coverage at a fixed rate for a term of between 10 and 30 years. It is the most affordable option compared to whole life insurance.

Whole life insurance: This is considered a permanent life insurance policy and protects the insured for their entire life. The person who pays for this type of insurance will pay a fixed amount that will not change during the life of the contract. The policy does not expire and offers a cash value as well as the death benefit.

Joint policies

Beyond the selection of whole life or life insurance, there are also options for joint life insurance policies.

First-to-die policy: This policy covers the spouse who dies first. The remaining spouse will have to pay a separate policy, so that their dependents are financially supported in the event of death.

Second death policy: The second death policy provides for a payment to beneficiaries after both spouses die. If both members of a couple are financially independent but there are dependents such as children, this policy may make more sense.

Even though joint policies are available, it is more common for married couples to have two separate life insurance policies for convenience and to ensure that each is properly covered regardless of who dies first.

How Much Life Insurance Do Newly Married Couples Need?

Each couple will need a different amount of death benefit depending on their financial situation. After looking at the income, expenses, and debts of both spouses, as well as all assets, the newlyweds can find an amount they feel comfortable with.

In addition to discussing income and expenses, couples also take into account how much they wish to leave for their beneficiaries and the cost of funeral services, funeral arrangements, and special requests.

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