LIBERTY BLOG – February 2016 Recurring Order

Life Insurance for Newlyweds: Points to Consider

Congratulations! You’re about to get married! That means you’re embarking on an exciting new journey with your chosen partner! And though everyone wants that journey to be a long, safe, and happy one, the truth is that you never know ahead of time if something bad is going to happen to one of you. That’s where life insurance comes in.

Of course, thinking about such depressing things isn’t what you want to do on your wedding day or honeymoon—nor should you have to. Go have an awesome time! But when you get back and the two of you settle into a routine, it’s advisable to set aside some time to discuss purchasing life insurance. Keep the following points in mind:

  • Dependents. Are you a one-income family? Do either of you have children? Are other people—like an elderly parent or a chronically sick sibling—dependent on you? The answers to these questions will reveal how many people rely on one or both of your incomes to survive and indicate how much life insurance you need to purchase. For example, if you’re a one-income family and one of you stays at home to take care of an elderly parent, your life insurance policy will serve to cover the time necessary for the surviving partner to find a way to generate enough income to live, as well as provide third party care for the parent.
  • Financial obligations. When you decide to spend your lives together, it’s not unusual to purchase a home—which means you share the obligation of paying off your mortgage. At the same time, you both probably have some form of debt, such as student debt, car loans, or credit card debt. If one of you passes away, then you need to make sure the surviving spouse has the means to pay off his or her debt, as well as any financial obligations you’ve entered into together.
  • Income disparity. If one of you earns considerably more than the other and that partner passes away, then the surviving spouse needs enough not only to meet all your joint obligations, but also to bridge the time until he or she can establish an affordable living situation. Making lifestyle changes like moving to a smaller home, getting a different job and/or working more hours, or locating a less expensive school for the children can take both time and money.  
  • Health. As a rule of thumb, people tend to be healthier the younger they are. And when you’re purchasing life insurance, the healthier you are, the better rates you’ll get on your policy. That means that if you purchase your life insurance policy now, you’re more likely to be able to lock in favorable rates for the term of the policy.

When you have loved ones who depend on you, it’s vital to make sure they’re taken care of—both while you’re happy and healthy… and after you’ve gone. Contact the team of life insurance experts at Liberty Financial Group to find out what your life insurance options are.