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Newlyweds Should Own a Life Insurance Policy [Top 7 Reasons Why]

newlywed life insurance

When starting a new life together as a married couple, it’s easy to get caught up in the excitement of building a home and future plans. However, it’s also important to consider the financial protection of your spouse and loved ones in the event of an unexpected tragedy.

This is why many newlyweds begin shopping for life insurance, as it provides peace of mind and financial security for their partner and dependents if the unexpected were to occur. In this article, we will explore the top reasons why newlyweds choose to purchase life insurance and what types of policies they should consider.

Top 7 Reasons All Newlyweds Should Own a Life Insurance Policy


#1. New expenses.

One of the first things that newlywed couples tend to do after getting married is to re-evaluate their current living situation. This may involve taking a second look at their apartment or home, their vehicle situation, or even their furniture choices. As a result, they often take on new expenses and assume new and/or larger debts, which could be detrimental to their loved ones if they were to pass away suddenly.

For this reason, it’s essential for newlywed couples to re-examine their life insurance situation, particularly if all of the life insurance they currently own is through their employer, which may or may not be enough now that they are officially married. By taking the time to assess their life insurance needs, they can ensure that their loved ones will be financially protected if the worst were to happen.

#2. You could be assuming your spouse’s debt.

After getting married, many couples choose to combine their finances and debt, resulting in an equal sharing of their debt burden. However, not all debt obligations will automatically transfer to each partner within the marriage.

However, creating joint accounts or living in a state with progressive community property legislation could make one partner responsible for their spouse’s new debt, regardless of whether they agreed to it or not.

This is why many couples, even those who believe they have sufficient insurance coverage, choose to purchase additional coverage to err on the side of caution and ensure their loved ones are financially protected in case of the unexpected.

#3. Congratulations! You just qualified for a 30 year mortgage.

Newlyweds often love the idea of purchasing a new home as part of the American dream. However, until the home is paid off, what they’ve really purchased is a mortgage. This is why it makes sense to consider purchasing a 30-year term life insurance policy or adding additional coverage.

This is particularly important because the mortgage may be too expensive for the insured family to afford on their own if one partner were to pass away prematurely. A life insurance death benefit can provide the financial assistance needed to help pay off the mortgage and ensure that the surviving partner can continue to afford the home they worked so hard to obtain.

#4. Children may be arriving soon.

While not all newlywed couples may be thinking about having children, it’s safe to say that many will be. In fact, planning for children or thinking about expanding the family is often one of the most common reasons why someone chooses to purchase a life insurance policy.

However, this can complicate things when it comes to calculating how much life insurance is needed. In addition to factoring in things like lost wages and mortgage costs, which someone might want to cover with a life insurance policy, they will also need to factor in costs such as child care or college funds. These additional expenses can significantly impact the amount of life insurance coverage needed to adequately protect the family’s financial future.

#5. You may be the primary income earner for the family.

Finances can vary greatly in a marriage. While some couples contribute equally to household expenses, others may rely on one spouse as the primary breadwinner. In such cases, the loss of the primary breadwinner due to premature death can significantly impact the financial security of the surviving spouse. Therefore, the primary bread earner may need to purchase a life insurance policy to safeguard their family’s financial future.

It’s important to note that not all work in a household is compensated financially. Even if only one spouse works outside the home, the non-working spouse may contribute significantly to the household by providing childcare, cleaning, cooking, transportation, and other services. In the event of their premature death, the surviving spouse may need to pay for these services, which can be expensive. Therefore, purchasing a life insurance policy on the non-working spouse may be a wise decision to ensure that the surviving spouse can continue to receive the necessary household support.

#6. Financial Strategies.

Inevitably, as couples grow closer in marriage, they will begin discussing what they would like their future to look like. Planning for the future will likely include discussing how they will save and possibly invest. In addition, many newlyweds may also consider utilizing various financial strategies that incorporate different types of life insurance policies, such as whole life insurance (also known as Infinite Banking).

#7. Creating an Immediate Asset.

Another significant reason why many newlyweds consider purchasing a life insurance policy is that it is the easiest way to create an “instant asset” that can be passed on to your loved one when you die.

Unlike any other asset that may take time to increase in value or require large amounts of investment capital to acquire, life insurance allows one to acquire a significant amount of money for a relatively small price (assuming that you would be able to qualify).

And there you have it…

Our top seven reasons why newlyweds should consider purchasing a life insurance policy. Of course, there are dozens of other reasons we could have mentioned, but these seven should be enough to convince even the most skeptical newlywed that it’s probably time to at least explore the option of a life insurance policy.

So, what are you waiting for?

As an independent life insurance brokerage, we at IBUSA can help you shop dozens of highly-rated life insurance companies all at once, saving you tons of time. Simply give us a call, and let us show you what we can do for you.

As an independent life insurance brokerage, we here at IBUSA can help you simultaneously “shop” dozens of highly-rated life insurance companies, saving you tons of time.

All you need to do is just give us a call and let us show you want we can do for you!

Frequently asked questions

Why should newlyweds consider purchasing life insurance?

Newlyweds should consider purchasing life insurance to protect their financial future in case of the unexpected. If one spouse were to pass away prematurely, the surviving spouse could face financial hardship, such as mortgage payments, debt, and childcare expenses. Life insurance can provide financial support and security for the surviving spouse and their family.

How much life insurance do newlyweds need?

The amount of life insurance needed will vary depending on each couple’s specific financial situation, such as income, debts, and expenses. It’s important to consider future expenses, such as childcare and education costs, when determining the appropriate amount of life insurance coverage.

What types of life insurance policies should newlyweds consider?

Newlyweds should consider term life insurance policies, which provide coverage for a set period, such as 10, 20, or 30 years. Whole life insurance policies, which offer lifetime coverage and cash value accumulation, can also be an option for couples looking for a long-term investment.

What is the difference between term life insurance and permanent life insurance, and which one should we choose as newlyweds?

Term life insurance provides coverage for a specified period, usually between 10-30 years, and pays a death benefit if the policyholder dies during that period. Permanent life insurance, such as whole life or universal life, provides coverage for the policyholder’s entire life and includes a savings component that can accumulate cash value over time.

As newlyweds, term life insurance is often a more affordable and practical option because it provides the necessary coverage for a specific period when financial responsibilities and debts are likely to be highest. However, it’s important to consult with a financial advisor or a life insurance agent to determine which type of policy is best for your specific needs and goals.

Can both spouses be covered under the same life insurance policy?

Yes, both spouses can be covered under the same life insurance policy. This can be a more cost-effective option for couples looking for life insurance coverage.

How much does life insurance cost for newlyweds?

The cost of life insurance for newlyweds will depend on several factors, such as age, health, and coverage amount. It’s recommended to get quotes from multiple insurance companies to compare rates and find the best policy for your specific needs and budget.

Is it better to buy a joint life insurance policy or separate policies for each spouse?

It depends on your individual circumstances and needs. A joint life insurance policy covers both spouses under one policy, while separate policies provide coverage for each spouse individually. Joint policies are usually cheaper than two separate policies, but they only pay out once and may not provide adequate coverage for both spouses. Separate policies offer more flexibility and can be tailored to each spouse’s individual needs, but they may be more expensive. Ultimately, the decision should be based on your specific financial situation, goals, and priorities.

How much life insurance do we need as newlyweds, and how do we calculate it?

The amount of life insurance you need as newlyweds depends on various factors such as your income, debts, expenses, and future financial goals. As a general rule, a life insurance policy should provide enough coverage to pay off all debts and provide for your family’s living expenses for several years. A good starting point for calculating your life insurance needs is to multiply your annual income by 10-12. However, it’s best to consult with a financial advisor or a life insurance agent to determine your specific needs.

What happens to our life insurance policy if we get divorced?

If you have a joint life insurance policy, you will need to review and possibly change the beneficiaries and coverage amounts in the event of a divorce. If you have separate policies, each policyholder can keep their policy and choose their own beneficiaries. It’s important to update your policy after a divorce to ensure that your beneficiaries are current.

Can we change our life insurance coverage or beneficiaries after we purchase the policy?

Yes, most life insurance policies allow you to make changes to your coverage and beneficiaries. However, it’s important to review your policy regularly and make changes as needed to ensure that your coverage and beneficiaries are up to date. Some policies may have restrictions or fees associated with changing coverage or beneficiaries, so be sure to read your policy carefully or consult with a life insurance agent.

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