From buying a home to starting a family, getting married is usually the first step in a series of major financial decisions. With all these issues to sort through, couples often put their need for life insurance on the back burner. When you have this type of policy, you can rest assured that if you were to pass away, your spouse would get a benefit that could offer immense financial support. Whether you’re a newlywed or getting ready to celebrate your 10th anniversary, here’s what you should know about life insurance—and how it can help you as a married couple.
A Guide to Life Insurance for Married Couples
Why Do Married Couples Need Life Insurance?
The loss of one spouse can leave the surviving husband or wife with a wide range of financial responsibilities. In addition to covering funeral expenses, they may face stress trying to cover homeowner expenses, pay routine bills, and maintain their lifestyle. These responsibilities can be particularly difficult for those who depend on the income of a spouse. With a life insurance benefit, however, the surviving partner will have extra funds to cover these expenses.
What Are the Main Types of Policies?
Term and whole life insurance policies are the most common options.
Term plans last for a specified period—such as 10 or 20 years. If this period passes and the covered individual does not pass away, the death benefit is no longer available. This option is typically more affordable.
Whole life plans are more expensive than term policies but provide greater peace of mind. So long as the necessary premiums are met, these policies will provide a permanent death benefit no matter how much time has passed.
Is Joint Life Insurance an Option?
Couples looking to reduce coverage costs can open a joint policy. In simple terms, standard joint life insurance covers both spouses. If one passes away, the other receives the benefit. (Not all companies offer joint life insurance)
Another option, known as second-to-die life insurance, is when funds are paid to beneficiaries—such as children—when both spouses pass away.
How Much Should You Buy?
Ideally, the total coverage should provide enough funds to replace income lost due to a spouse’s death. At a minimum, the benefit should be enough to cover any debts that the surviving partner may be responsible for—such as remaining mortgage or student loan balances.
Life insurance rates tend to be much more affordable the younger and healthier you are, so you shouldn’t wait to start a policy. If you’re ready to explore your options, K.L. Smith Agency in Willimantic, CT, will introduce you to several affordable plans—including term, joint, and whole life insurance policies. In addition to getting you covered in a way that makes sense for your budget, these insurance agents will take a personalized approach to ensure your policy terms meet your needs and leave no important details unaddressed. To learn more about their products—including car and homeowner’s insurance—visit this provider online. For a custom quote, call (860) 423-9294.