From the time they are small, many dream of getting married at some point. Who will the person be? How will they meet? How many beautiful children will they have?
Typically, nowhere in these fantasies do the topics of shared financial responsibility and preparing for the unexpected enter the equation.
But as we know, planning for a lifetime with your soulmate goes beyond just arranging the wedding and booking the honeymoon.
There are impactful money decisions newlyweds must consider (#adulting) once they’ve moved from “me” to “we.” And that includes figuring out if something like life insurance is right for you and maybe, sometime soon, your growing family.
Why life insurance?
Life insurance for newlyweds can be a critical financial component of any lifetime partnership or union.
When you get married, you promise to take care of each other for richer or poorer. In sickness and health. And yes, till death do you part. Life insurance extends that promise even further by helping to take care of your partner financially, even after you̵7;re gone.
Money from a life insurance policy can be used by your partner to help pay day-to-day expenses, pay off debts, cover final expenses, pursue other long-term financial goals and, eventually, help provide for your children. A good place to start when deciding whether life insurance is right for you is to just get an idea of the amount of coverage you need to protect your loved ones financially.
Choosing term or permanent life insurance
There are many different types of life insurance, but the two main varieties are permanent and term. Permanent life insurance coverage lasts for life and accumulates cash value that builds up over time and can be borrowed against. Loans from the insurance, however, reduce the cash value and the death benefit.
Because it tends to be more complicated than whole life insurance, permanent life insurance often requires the help of a financial professional or agent. In addition, the premiums are significantly higher. A $500,000 policy for a 35-year-old man in excellent health would likely cost about $550 per month.
Life insurance is an affordable and practical way to protect the financial future of your loved ones. A 30-year, $500,000 policy would cost the same 35-year-old man in excellent health about $35 per month. The way life insurance works (once you’ve applied and been approved for coverage) is in exchange for a monthly premium, an insurer will pay a death benefit should you die within the term.
What does life insurance cover?
Buying life insurance sometimes requires conversations with your partner that can be somewhat uncomfortable. But compared to planning a wedding, it’s practically a cakewalk.
Together, you want to figure out how much coverage you both need to financially protect each other if one of you was no longer around. When it comes to life insurance, many experts suggest purchasing coverage that is 5-10 times your annual salary. If you make $50,000 a year, that would mean buying $250,000 – $500,000 in term protection at least.
That’s a good rule of thumb. But that may not be enough if you consider all the expenses a newly married couple will face during the many years that lie ahead together.
Consider the following expenses when purchasing life insurance:
For young newlyweds:
- How much of your income your partner relies on to stay financially afloat
- Costs of daily living such as rent, utilities, insurance, taxes and more
- Financial obligations such as a mortgage, car payments, personal loans and other debt repayments
For young newlyweds with children:
- Education and extra-curricular expenses
- Higher education
- Insurance for children such as health and dental
Fortunately, it’s easy to find out how much life insurance is needed to protect your new spouse. An online life insurance calculator takes into account your income, debts, living expenses and financial dependents to recommend a range of cover amounts suitable for your situation. No air mat required.
Save on your plan for the future
Age and health determine what your life insurance rate will be. Therefore, newlyweds who buy insurance early can usually lock in an affordable premium for a few decades. Plus, take it from someone who was once a newlywed, life only gets harder from here. So being proactive and checking life insurance off your to-do list can have several benefits.
To give you an idea of the price: Imagine you are a newly married 28-year-old man in excellent health. If you want to buy a 30-year, $500,000 Haven Term life insurance policy, it can cost about $29 per month.
That price increases to about $35 per month by the time you’re 35, and that’s also assuming you’re still in excellent health. While not an astronomical difference, the reality is that health is not something you can ever take for granted. I was newly married at 28, and at 33 I developed a condition that would have prevented me from qualifying for coverage. Acting quickly will help ensure your partner and young children are protected from the start.
It’s worth noting that the insurance you buy now isn’t the coverage you’re stuck with for life. As you get older, your income is likely to increase as well as the number of dependents (code word for “children”) you have. It’s important to review your life insurance needs every few years, and if you find you’re underinsured, buy another small policy to increase your coverage.
What to look for when buying life insurance
If you’ve been put off by the traditional, cumbersome application process often synonymous with life insurance, you may want to reconsider now that it’s possible to apply for, purchase and initiate coverage online. If this is an approach that appeals to you, here’s what you’ll want to do next:
Determine your coverage needs
We already mentioned that most experts recommend a cover amount that is 5-10 your annual salary. That’s a good place to start.
However, you should also consider any debts you have that would be left to your partner and future family to cover. Daily expenses, a mortgage, co-signed loans and future expenses for children are all worth considering when going through the life insurance process.
Again, an online life insurance calculator can be your BFF here. It helps give you a comprehensive look at your financial situation along with a level recommendation of how much coverage you need. Having options is good.
Get coverage estimates
Once you’ve decided how much life insurance you need, it’s a good idea to shop around and compare quotes. Be sure to compare life insurance quotes online for at least 3 to 4 companies, be sure to compare apples to apples. For example, if you decide on a 20-year, $500,000 policy, get multiple quotes for the exact coverage over a 20-year timeline.
On our quote page, you can get a free quote for the Haven Term policy and also compare its pricing with top insurers to get a solid – and very effective – understanding of how much this coverage costs between providers.
Check life insurance company ratings
Life insurance companies are rated by established, independent credit rating agencies based on their financial strength and the rating agency’s perception of a company’s claims-paying ability. Each agency has a rating scale – much like a report card. Do you remember them?
AM Best gives such a rating. Companies such as AM Best make an independent assessment of a company’s financial strength and ability to meet its financial commitments. Haven Term life insurance is issued by MassMutual or its subsidiary CM Life, which is rated A++ by AM Best, their highest possible rating.* That’s as good as it gets.
When purchasing insurance, it is a smart idea to compare the ratings of different insurance companies to help assess the financial strength of their issuing company.
Apply for life insurance online
The application and approval process that used to take weeks, phone calls and faxes can now be done from the comfort of your home.
Life insurance applications can be long and thorough. That said, most of our customers can apply for Haven Term life insurance in less than 15 minutes.
Here are some of the things you’ll want to have on hand to make the process seamless:
- Financial information, such as your salary and net worth
- Personal and family health information, including height, weight and current medical history
- Information about occupation and lifestyle
- Social security number and active driver’s license
- Contact details for your primary care doctor, if you have one
- Names of your beneficiaries along with their phone numbers, dates of birth and addresses (you can always change this later)
When you submit an application for the Haven Term policy, issued by our parent company MassMutual or its subsidiary CM Life, you answer health and lifestyle questions using and possibly an offline medical exam to determine eligibility. If approved, you can begin coverage that day.
Preparing for the future
All newlyweds should consider life insurance to protect their new life partner financially.
While no one wants to imagine an unexpected death—especially so soon after one of the happiest moments of their life—it’s important to prepare for the “what ifs” that life can throw your way.
Life insurance for young, healthy newlyweds is affordable and provides immeasurable peace of mind for both spouses. And just think, when you buy life insurance up front, it’s one less thing you have to do as you prepare for what will likely be your next significant milestone: becoming a parent. Trust me. Leisure then becomes a luxury.