Оnе оf the first things that new married couple should dо іs to take life insurance policies. Life insurance for married couples is а form of financial protection. This will provide relief from financial problems such as medical bills, expenses аnd other long term financial nееds, іf оnе spouse wеrеtо die early.
Even though, death of a spouse is not the first thing that comes in mind when you get married. But it’s always best to prepare for the worst for the couples. It is also a show of love between spouses as you show to your partner. You really care so you are taking measures that will help him/her out even if you are gone from this world.
Let’s jump into the article about life insurance for married couples
You may love each other very much but when you are struck with life threatening disease that requires expensive treatment. You would regret not signing up for a life insurance for married couples. Many families are ruined when such diseases attack one of the spouse. It is not possible for an average middle class couple to pay for such expensive treatments and all their dreams comes to a sudden halt.
Most couples rely on each other’s paycheck to run the family expenses including mortgage payments. But there is no guarantee that both partners is going to live a long and healthy life. As bitter as it may sound, this is the reality of life.
Life insurance for married couples is also important if the couple seriously cares about their child’s future. Your children will have financial coverage until their college age or even until their lifetime. Depending on your policy, you can make sure that.
What is the right coverage?
Life insurance for Married Couples can be a tricky thing. That is because in a family the priorities change all the time. That is why it is a great advise for you that the couple evaluates their policy at least every 5 years. In 5 years, you can have children, you may have to take your parent’s responsibility and the list could go on and on. Even though you may have diabetes.
In terms of the amount of insurance coverage, there is no 1 right answer for it. It varies from person to person as each family has different financial needs. It will be a suggestion is to sit down and calculate all the assets. And then liabilities the couple jointly has and then consider what will happen if one of them passes away. If it turns out that it would not be enough to cover the financial needs, then perhaps its time to increase the coverage.
In Investment terms, an investment can either be for asset protection or for asset appreciation. Asset appreciation is where you invest your money with the goal of increasing it whereas asset protection is for simply holding on to what you already have. Life insurance for married couples is a unique kind of financial instrument in a sense. In fact that it gives both asset protection and scope of asset appreciation.
Whilst the main aim of life insurance for married couples is to protect the family assets in circumstances. It causes loss of income due to death or life threatening illness. In addition, it has the prospect of increasing the wealth of the family. So life insurance for married couple scan be viewed as an investment as well.
Unity is strength:
Yes the phrase is true in case of life insurance too. The premium for a life insurance for married couples is usually cheaper than the same coverage for two different individuals. So you can save money with life insurance as a married couples.
Usually the amount of premium you need to pay is determined based on the average age of the couple, their health conditions etc. and benefit is paid if the event of the death of one spouse. While selecting a policy a couple should browse the package offered by the different companies out there as the policies vary and not all policies are likely to suit every couple’s needs.
Make sure you are making the right type of comparison, don’t strike out a company of your list just because you are mistakenly comparing joint policy with single policy. And in case of joint policy, make sure that the benefits do not decrease as time passes. Also make sure that your premium doesn’t rise every other year. And finally make sure that the policy has the option of choosing a secondary beneficiary who can get the money in case both the spouses die.
Do you have already?
Are you already own a life insurance policy. If no, you need to sit down with your spouse and your insurance provider to decide on your joint life insurance. Usually, life insurance for married couples have some added advantage over single policies. That’s why when people get married, they prefer the joint policy. For example, if both of you had a mortgaged house, you may decide to sell off one house. And then you may clear out that mortgage debt which decreases your total debt as a couple. This means that there is less debts to pay in case one of you die.
Marriage has its benefits and drawbacks but one of the financial advantages you get out of marriage is the money you can save from joint life insurance. To sum up, the follow the bellow about life insurance for married couples:
- Joint life insurance pays off no matter which partner dies and it is cheaper than individual policies. It’s especially useful for newlyweds who are need to save all the money they can and they can save on insurance premiums if they choose joint policy.
- Even in case of one stay home spouse, it’s worth taking out a joint policy to cover the cost of child care in case of the partner’s death.
- In case of vast difference of income between partners, individual policies are better in order to cover each spouse adequately
- Individual policies for each partner is more expensive than joint policy but provides 2 times cover.
- If you write your life insurance in trust, then you can save money on inheritance tax.
In the end, no matter what you choose it all depends on your individual need. But one of the benefits of having a whole life insurance is that you don’t need a separate senior life insurance once you grow old. And usually senior premiums are higher based on the health complications of senior citizens. However, choose the right package in a young age, preferably just after marriage. You can get a lifelong deal of affordable premium with hopefully no need for another life insurance premium to add to your monthly expense list ever again.