Insurance Advice for Newlyweds

Starting a new life together is exciting, but can also be a bit overwhelming.

There’s a world of new responsibilities, including newly shared financial obligations.

Amidst all the celebrating and well wishes, developing a sound financial plan that includes adequate protection against life’s unforeseen risks is extremely important.

Though not a topic most newlyweds want to spend a lot of time thinking about, the chance of dying prematurely and leaving behind a loved one is a risk that no married person should ignore.

So how do young couples know how much and what kind of life insurance they need?

The best way to determine your individual insurance needs is to carefully review your financial situation and objectives with an insurance advisor.

But here are some important questions to get you started:

If you died tomorrow

• How much would it cost your surviving spouse to meet monthly living expenses such as the utilities, transportation and food?
• How much would it cost your surviving spouse to continue to maintain his/her standard of living (buying new clothes, eating out, going to the movies, taking an occasional vacation, etc.)?
• Would your surviving spouse be able to manage the mortgage or rent payments on one salary?
• How much debt do you currently have including credit card bills, student loans and car loans?
• If you don’t already own a home, are you planning to purchase one soon?
• Are you planning to have children any time soon?

It’s particularly important to ask yourself these questions now because there are advantages to purchasing life insurance early in life. If you buy when you’re young and healthy, you can “lock-in” coverage and insurability options for additional coverage at favorable rates.

In calculating how much life insurance you need, consider your other sources of income such as savings, investments, Social Security benefits, group life insurance and lump-sum pension benefits payable to a survivor. Then figure how much additional money your spouse would need in order to pay your final expenses and outstanding debt.