Wedding season is officially upon us. From June- September each year, many new couples get married after months of planning, surrounded by their friends and family, and enjoy a honeymoon before settling down.
If you are getting married, or thinking about it in the next year or two, it could be a good time to start thinking about what your life will look like once you are married. This not only includes how you will live your life but your insurance and finances.
Why now?
Getting married is a life-changing event and for good reason. Not only do you have to make adjustments like moving in together, changing names, and joining bank accounts, but it could also be a good time to consider what could happen if something bad happens to your spouse.
That is where life insurance is important because it can give you the peace of mind you will be taken care of in the case of your spouse passing away unexpectedly.
Considering a life insurance policy as newlyweds may seem too soon but in reality, anything could happen at any time.
Major changes in your life to consider
Once married, there can be many major changes, specifically to your lifestyle. Assessing these can be a good place to start to determine the importance of life insurance.
Change in Job
First, your job situation may change if you plan on living on one income. With one spouse staying at home, it could decrease the amount of income you have and you want to protect that income in the case of unexpected death.
Your cost of living may also change because of where you moved. You could have a new mortgage or extra living expenses that you may not have had before as a single person. If you want to maintain your lifestyle, having life insurance can ensure you don’t have to sell belongings or make drastic changes to make ends meet.
Combining Finances
Another change to consider is combining finances. This may increase the debt you are responsible for. Student loans, credit cards, and other debts can be higher if you choose to combine finances, so life insurance can help to make sure you have the resources to pay off that debt.
Speaking with a financial advisor and accountant can help determine if this is right for you. Not all married couples combine finances, but it is still important to consider how you as a couple handle money.
Consider Your Future Family
Finally, considering the future is also important. Do you want kids? How will you provide for them if you are gone? These are important questions to ask yourself when you are planning financially for life insurance.
How to get life insurance as a married couple
Once you determine how your life will look like once you marry, it is time to look at life insurance policies.
Cost can be a main factor in your decision to get life insurance and how much to get. You will be your youngest age when you are a newlywed, so life insurance rates will be lower than if you were to purchase a life insurance policy later in your marriage.
It is also a good rule to get separate policies. The reasoning behind this is to make sure your income is able to be replaced. Even if your spouse stays at home and doesn’t work, the duties they provide can be costly.
For example, if your spouse is no longer there to provide child care, you may need to enroll your child in daycare, which costs an average of $18,000 per child in 2023.
Having a separate policy also allows you to get multiple policies. Legally, you can own more than one life insurance policy. Combined, this can add up to a larger death benefit.
Reassessing your life changes can be a good time to purchase a life insurance policy. For example, you can purchase a new policy when you have a new child, get a new home, or start a business. Reviewing your finances often helps you to protect your family in the case of any unexpected accidents or critical illness and can allow you to adjust your life insurance needs depending on any new expenses you may have.
In conclusion, having a conversation about the future can be tough but it is essential to make sure your family is financially stable. The best way to do this is to talk with your spouse and determine how long they could live without your income and how much life insurance they think would work. Then you can work with a licensed broker to make sure you get a policy that works best for you.
Contact me today for a free consultation and assessment of your life insurance needs.