Life Insurance

Life InsuranceAs newlyweds, your focus is naturally on beginning your new life together as a couple rather than on life insurance.  Nonetheless, along with your plans for your honeymoon and perhaps a new home, you should seriously consider what would happen if one of you were to die unexpectedly. A substantial life insurance policy can provide you and your new spouse with the peace of mind that the surviving spouse will be protected from the adverse financial setbacks that can otherwise occur when a young person dies unexpectedly and leaves family obligations behind.

Protection for Your Spouse, Children and Parents

If one or both of you must care for elderly parents, having a life insurance policy in place can ensure the continuation of this essential care, whether in your home or in a nursing home.  You and your spouse may also be contemplating the purchase of a house and starting a family. Life insurance provides income protection that ensures that your dreams for your spouse and family are carried out in the event of your death.

If you and your spouse both work, you may come to depend on both incomes, especially as you acquire financial obligations such as mortgages and car payments. The loss of one spouse’s income can impose a serious crimp in your budget. The money from a life insurance policy   won’t make up for you, of course, but your spouse will have one less thing to worry about during a period of intense grief.

If you have already started your family then you are looking at two decades or longer of financial obligations to see your child through to adulthood. A life insurance policy can ensure that a fast-growing boy or girl has properly-fitting clothes, sufficient school supplies and other necessities. If your child wants to attend college, a life insurance policy can ensure that he or she can afford to go.

Purchase Life Insurance While You Are Young

The very best time to purchase life insurance is when you are young and healthy. Insurance companies are enthusiastic about signing up new policy holders in their twenties and early thirties. By the time you reach age forty-five, and especially after you pass age fifty-five, insurers become increasingly reluctant to issue life insurance policies. If you are an older smoker, your chances of obtaining life insurance decrease dramatically. Those companies that are willing to insure you may insist on invasive physical examinations and blood tests to ensure that you are as healthy as possible before actually issuing you a policy. You will also pay much more for life insurance as a mature adult than you would as a young adult.

Which to Choose? Term or Whole Life?

Many mature adults choose whole life insurance policies. This is because insurance companies typically hesitate to issue term life insurance policies to older adults. Many adults nearing or past retirement age also choose whole life insurance policies to supplement their retirement income. Others purchase whole life insurance policies to pass along to their heirs. On the other hand, term life insurance policies carry more coverage for cheaper premiums than whole life insurance policies. As a result, most young newlyweds should stick to term life insurance policies.