It’s never too early to invest in your future and buy life insurance as a married couple.
Buying a term life insurance policy while you’re still young and healthy can help you to get a low rate for the length of the policy term, which could be up to thirty years.
Marriage often comes with other major life decisions, such as buying a house or starting a family, that will directly impact how your money is spent.
Even if you and your spouse decide to handle your finances separately, buying a life insurance policy and naming them as a beneficiary means that your mutual financial plans are kept protected if one of you dies.
Nobody wants to think about themselves or their spouse passing away, but unfortunately, this is what life insurance is for.
But much like preparing for retirement, being educated on life insurance now can help give your security for the future.
What is life insurance?
Much like other kinds of insurance, life insurance is based on the fact that you don’t want the worst thing to happen, but the policy will help you if it does happen.
With life insurance, a policy is a contract between you and your insurance company, like Starr Wright USA reviews.
You agree to pay the premiums, which can be paid monthly, quarterly, or annually (if you want to pay annually, look for companies that offer a discount for policyholders who pay like this, thanks to lower administrative costs), and in return, the insurance company agrees to issue a payment to someone of your choice in the event of your death.
This payout is intended to help your loved ones, such as your spouse, with funeral expenses and debt payments, like your mortgage, and to give them some financial support to help them with costs like caring for children, and maintaining the quality of life that the family had when they were able to rely on your salary.
Should we get joint life insurance?
Should you get joint life insurance with your spouse?
In most cases, you actually shouldn’t.
Even if you joined your other finances, it’s not usually smart to have a joint policy instead of two separate ones.
Finding a joint policy for term life insurance can be hard.
There are options out there for joint permanent life insurance, often called ‘first to die’ and ‘second to die’ insurance, but these are usually not very flexible options.
However, they’re also often less expensive than two separate policies.
In first-to-die policies, the policy is paid out when the first spouse dies and the policy is then void, leaving the remaining spouse with no life insurance.
With a second-to-die policy, the policy is only paid after both spouses die, usually to adult children who have been named as the beneficiaries.
These policies can be complicated and it’s usually harder to change beneficiaries on a joint policy than it is on a separate one, especially in the event of death or divorce.
(Disclaimer: This content is a partnered post. This material is provided as news and general information. It should not be construed as an endorsement of any investment service. The opinions expressed are the personal views and experience of the author, and no recommendation is made.)