How does a marriage affect my insurance needs?
Getting married changes your life. You make a commitment to the one you love, gain new family members and, if you’re lucky, get that four-slice toaster you’ve been dreaming about. This is a time when many newlyweds begin planning their future together. That planning often includes life insurance - and for good reason. The benefits of life insurance for newly married couples could help protect your family’s financial future as you begin this next chapter of your life.
Here are three reasons why getting married can change you or your partner’s life insurance needs:
You’re sharing debt:
Most people get married with debt. For some, this might be a small car loan. For others, it could be tens of thousands of dollars in school loans. The good news is, your spouse isn’t always responsible for your personal debt. However, in some states, if you take on debt together after your nuptials — you buy a new car together, for example — it will become the responsibility of the whole household, even if one spouse passes away.
With the average American family owing around $135,000, you don’t want to leave your spouse to take care of all your shared debt after you pass. Life insurance could be helpful here, as your partner might be able to use your coverage amount to pay off a portion of your loans.
You’re adding to your family:
Marriage is the first step in a lifetime journey that might involve growing your family. More than half of all married couples in the U.S. have children under 18. If you are also planning to add to your family, you likely want to make sure your dependents are set up for success, even after you’re gone.
Life insurance allows you to do this. How? Your dependents could use the money from your policy to help cover debts or funeral expenses. Your life insurance could also cover some school expenses. That’s a big deal when two-year college students pay around $9,410 per academic year and those at four-year schools fork over almost $22,000 per academic year.
You’re marrying into money:
If your spouse is bringing a good amount of cash to your marriage, you might need to take another look at your life insurance situation. Why? The simple fact is, you may not need coverage at all.
If your household has enough savings to cover the expenses that could remain after one of you passes away — a mortgage or funeral costs, for example — then the extra money won’t be as necessary.
If you’re recently married or will be soon, take some time to think through these factors. Getting hitched can change your life insurance needs, and your financial future.