Did you recently tie the knot? Leading up to the big day, did you spend more time discussing finances with your spouse-to-be or planning your honeymoon? For most people, the answer is pretty simple.
It makes sense that couples want to make their wedding and honeymoon a once-in-a-lifetime experience. But now it’s time to discuss how you’ll manage your joint finances—from checking accounts, to savings strategies, and how you’ll decide which large purchases to make.
Another important factor to consider is life insurance. You may think that life insurance is only for families with kids or mortgages, but there are a number of reasons you’ll want to consider it now before additional responsibilities come along.
Sharing a household means not only mingling your possessions, but your debt as well. Depending on the state you live in and the type of debt, you may be responsible for your spouse’s debt if he or she were to die.
Many couples look forward to buying a home together. And signing a mortgage may be one of the biggest financial decisions you ever make. Oftentimes the mortgage payment relies on two incomes. Would your spouse be able to continue making those payments if you were no longer around? Would you be able to make the payments if your spouse wasn't?
While having children may be a few years away, it may be a good idea to get coverage in place before a new addition is on the way. That way it’s already in the budget before you start worrying about all the new expenses you’ll have as parents.
If you’re young and in good health, you should be able to get inexpensive coverage at this point. With life insurance, the older you are, the more expensive it gets. Plus, health can change on the turn of a dime, so it makes sense to lock in affordable rates now.
Term life insurance is generally the cheapest way to get the most coverage when you’re young, so it may be a good choice for many newlyweds. But, as the name implies, you buy term insurance for a period of time – usually 10 to 30 years, after which the guaranteed affordable rate expires. However, if you like the idea of keeping your coverage forever and being able to accrue cash value that you can tap into during your lifetime, you may want to explore permanent life insurance. This post gives you the scoop on “term versus perm.”
You’ve just made a lifelong vow to protect and care for your spouse. We think life insurance is a good, tangible way to reinforce that commitment. An insurance professional can help you sort through your options and find coverage to fit your budget and most important, help protect your family.
You may already have life insurance, but does the policy you originally signed up for account for how your life has changed since then?
Be honest. Do you procrastinate when it comes to things that you know you should do?