Friday, June 27, 2014

Do I Need Life Insurance Now that I'm Married

Last week, the importance of jewelry insurance was a topic on the blog. So we figured we'd keep the theme going with an article on life insurance. Have you discussed it with your husband now that you're married?
Essentially, life insurance serves as financial protection for your loved ones, should something happen to you. When you were single, it probably didn't matter much whether or not you bought into a policy, unless a family member happened to be financially dependent on you. Generally, the more dependents you have, the more likely you'll want to buy life insurance. And now that you're married, you and your spouse may want to consider getting a policy for added peace of mind.
Why do you need it? Even if you're making a decent salary, an insurance policy can help  replace a salary for the next decade or more and pay for burial and funeral expenses, which can cost upward of $10,000. It can also cover mortgage payments if you bought a home together or even student loans. Most young couples opt for a term insurance policy, which covers you for a designated time period (10, 20, or 30 year policy). It's ideal since it's generally the least expensive type of policy and because the payment remain level for the duration of the term. Whole life insurance is another option, but it's much more expensive. It insures you for a lifetime and premiums are guaranteed never to increase, regardless of age, health, or time lapsed. Whole life policies also build cash value, which you may be able to borrow against. There are a couple other options with more variable payments, which an insurance advisor can tell you more about.
What if you have a life insurance policy through your job? Get the details. It may be all you need for now, but usually doesn't offer enough coverage once you start a family. Also be sure to change the beneficiary to your spouse, if you haven't done so already. What type of insurance policy you decide to buy will be determined by multiple factors. It's best to discuss your situation and needs with a professional insurance agent or company. It's definitely worth the conversation and education.

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