Life insurance isn’t something that most young people think about. While planning for a future after your death is never fun, it’s a necessary step in securing financial security for your loved ones. Life insurance is particularly important for young couples who are just beginning to grow their families.
Newlyweds often have few resources saved up. Any money they have may have gone toward student loans, buying a house, paying for a wedding or simply surviving the first few years of transition into married life. It’s not unusual for young couples to enter a relationship in debt. While the debt can be paid off through careful budgeting and hard work, this situation puts couples at greater risk of financial disaster if one partner dies unexpectedly.
Why Newlyweds Need Life Insurance
Life insurance provides some peace of mind to couples. If one partner passes away, the insurance policy will help cover the costs of the funeral and final medical expenses to prevent the surviving spouse from accruing even more debt. The death benefit will also provide some much-needed money to the surviving spouse and any children. This money can help replace the income of the deceased partner and will help the survivor transition into a new lifestyle without undue financial hardship.
If you have children or are planning to have them, life insurance is even more necessary. Raising a child alone is a difficult task, and the death benefits of a life insurance policy can help alleviate some of the stress from an already-difficult situation. Furthermore, a large insurance policy can lay down the foundation of a college fund to help secure the future of your children.
Term Life Insurance is Affordable for Newlyweds
There are two main types of life insurance. The most popular and affordable type by far is term life insurance, which provides coverage for the duration of a predesignated term. Common terms include 10 or 20 years, but longer policies can be purchased as well. If the insured dies at any point during the term, the full value of the death benefit will be given to the beneficiaries. If the insured lives past the term of the policy, he or she has the option to purchase another policy.
The younger you are, the cheaper it will be to buy term life insurance. This is because young people are generally healthy and unlikely to pass away during the life insurance term. By purchasing a policy today, you can save money in the long term and secure coverage for the duration of your policy term.
Here are a few other ways to save money on insurance:
- Carefully determine how much coverage you can afford. In general, longer terms will cost more, but they may be a better deal in the long term. It’s often best to buy the longest term you can afford.
- Determine if both parties need life insurance. It doesn’t always make sense for both partners to have life insurance policies or for those policies to be identical. Decide what makes the best financial sense for your situation.
- Apply when you’re in good health. By applying during the peak of health, you can save a substantial amount on insurance..
By understanding why couples need life insurance and how to save money on a policy, you can make the decision that will make the most financial sense for you and your family