What Newlyweds Should Know About Life Insurance

Everything Married Couples Need to Know About Life Insurance

There are many exciting things to do together as a newlywed couple. You’ll also have many plans you’ll need to make, such as creating a strong financial plan for your future. This should include buying life insurance. There are probably a lot of questions that you have about this purchase.

What’s life insurance used for?

This is a great way to show your partner that you love and care about them because you’ll be giving them a way in which they can carry on their life if you die. You can also use it to help you with your financial planning. A licensed insurance agent will help you create a policy that provides you with more than just a death benefit. This can include things like a critical illness provision, long-term care benefits, and even cash value.

What kind of life insurance do we need?

Your budget and the extent of what you need your coverage to do will help you decide what type of policy you need. You may only need something to cover funeral costs. However, you should know that there are many different types of policies available to meet your unique needs. Typically these are defined as a term or permanent policies.

  • What is a “Term” policy?

This is a policy that you purchase for a specific amount of time. If you die during that time, your beneficiary receives a specified amount of money.

  • What is a “Permanent” policy?

These policies don’t end at a certain time. They continue covering you throughout your life, providing you with a death benefit as well as cash value. You’ll pay more for these policies, but they can still be quite affordable.

Do we need this if we don’t have children?

This is a common reason why many couples say that they don’t have a life insurance policy. However, it may not be as black and white as this.

  • What if you don’t have kids now but want to have them later?

It’s still a good idea to buy a policy now because the younger you are, the more affordable it is. Therefore if you buy a policy now, you may be able to keep your rates lower for longer.

You should also know that your ability to purchase a policy will depend on your being healthy. Therefore, if you buy a policy now, you’ll be prepared in case you have a health event in the future that makes you uninsurable.

  • What if you never want to have children?

You’ll probably still need to have a policy that covers your partner even if children aren’t in your plans. It’s also a good idea to have a plan for any of your other dependents or even for philanthropic reasons. Therefore you should have a policy in place at least until you and your partner are financially secure enough to cover all of your financial needs if your partner dies.

Can we afford to buy a life insurance policy?

Almost everyone can afford to buy a policy as they’re more affordable than you might think. Research shows that 8 in 10 millennials overestimate the cost of these policies by as much as 5 times. So the only real way to know if it’s affordable for you is to decide how much you’ll need and then shop around for a policy. If you can’t find one that fits your budget, start a little lower, then scale up.

How do we get a policy?

While it’s fun to be newlyweds, you shouldn’t overlook the importance of creating a sound financial future. Take some time to get all of your questions answered regarding life insurance by scheduling a time to talk to us at Gemini Insurance Company in Palm Harbor, FL, today.

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