Planning a wedding is no small task. There are so many details, from the catering to the venue to the guest list. But in all the scheduling you may forget to add one big thing to your to-do list – life insurance.
Whether or not you and/or your soon-to-be spouse already have life insurance policies, a huge life change like marriage means at the very least you’ve got some updating to do. Here are the top five things to think about when it comes to your life insurance needs as newlyweds.
Newlywed Life Insurance Tip #1 – Start Planning for Your Family
It may be years down the road before you add to your family, but marriage brings babies to mind. Life insurance is all about providing protection for your family. Right now it’s just the two of you, but when you’re considering things like the death benefit amount it’s important to project for future financial needs.
Newlywed Life Insurance Tip #2 – Account for Expected & Unexpected Expenses
Buying your first home, covering expenses after losing a job, baby number three – life is full of both expected and unexpected expenses. When you have a family there are even more variables to account for. Some life insurance policies allow you to borrow against the cash value or withdraw it to cover life’s expected and unexpected expenses.
Newlywed Life Insurance Tip #3 – Think About the Life and Longevity of the Policy
It’s the age-old question of term versus permanent life insurance. While it’s tempting to opt for the cheaper term life insurance when you’re young and starting out, in the long run it may not be the most financially rewarding option. The policy could run out right when your kids get to college, and you’ll have to worry about renewing at an older (i.e. more costly) age.
Newlywed Life Insurance Tip #4 – Bring Together Your Budgets
Up until the time that the marriage license is signed there’s a good chance that your budgets are handled separately. But before you make life insurance moves lay everything out on the table – income, assets, debts. You need a clear picture of your current finances together to make the best decisions for your financial future.
Newlywed Life Insurance Tip #5 – Decide on Individual vs. Joint
If you both already have life insurance you may just want to update the policies or you may want to consider having one joint life insurance plan. There are a few benefits to a joint plan beyond only having to worry about maintaining one policy. A joint policy could lower the overall cost of having both spouses covered, and it could provide protection against estate taxes. There are two types of joint life insurance to choose from: first-to-die (the surviving spouse is the beneficiary) and second-to-die (heirs are the beneficiaries after both spouses pass).
If you’re getting married, you’ve probably got a lot of things on your mind. Call Biscoe Insurance Group and one of our knowledgeable agents can help you plan for your newlywed life insurance needs.
Original Source: http://www.mybiginsurance.com/life-insurance-blog/couples-add-life-insurance-wedding-registry