Term Life Insurance is Perfect for Newlyweds

Weddings may be a joyous occasion for couples ready to start a new and exciting life together, but with marriage also comes certain obligations, including the need to protect your spouse and future children’s well-being in the event of an unforeseeable accident. That’s where term life insurance can help.More...

What Makes a Term Life Policy Different?

Term life insurance is insurance that is purchased for a set period of time, with your premium always remaining constant. There’s never a worry that you’ll be making a higher payment in the years to come. The guarantee that term life insurance brings is the relief in knowing that should you or your spouse die during the coverage period, your family won’t face catastrophe.

Newlyweds often don’t want to consider the worst possible scenarios, but obviously sometimes they do occur. That’s why it is so important to plan ahead rather than leaving your financial fate dangling and hoping for the best. Term life insurance can help you pay off debts like auto loans, outstanding student loans and personal loans, will help cover funeral expenses, unpaid medical bills and estate taxes and also help provide your family with an emergency fund/nest egg that will ensure that your children will be provided for and the surviving spouse can maintain their standard of living.

Special Considerations for Wives and Mothers

While most men usually take out the correct amount of coverage, many women only take out enough insurance to cover their salary and fail to consider their household contributions as being financially worthy. Sadly, being underinsured can also place the family in financial jeopardy. When it comes down to determining the monetary value of doing housework, childcare and other home-centered chores, more than a third of all women undervalue their contributions by an astounding $30,000 annually.

Women should take the time to visit the website worthforwomen.com, and take advantage of the site’s Worth for Women Calculator to better understand the value of their contribution. The site also has information that can be helpful in determining insurance needs during different life stages.

Choosing Your Plan

Your best bet as a couple is to speak with both an insurance agent and financial advisor to determine which type of term life insurance policy is best for you. Most experts suggest a 20 or 30 year level term policy so that your family is adequately covered. Many experts suggest that for maximum protection each spouse purchase a policy that’s 10 times greater the amount of his or her annual net income.

If you currently have children, a financial advisor can help you factor in which amount and length of coverage would be best. Your best bet is to make sure that your policy lasts until your last child has completed college. A professional will also be able to recommend appropriate coverage based upon your current debt, annual salaries, savings and investments.

By securing your financial future you are protecting your spouse and children and ensuring that they will have a bright future even if you are gone. Without a doubt, term life insurance is your least expensive coverage, yet the best option for protecting your spouse and children against calamity.

Photo credit: Newlyweds by Melanie Ko/flickr; Family Mosaic by Don O’Brien/flickr

Author Monica Braxton is an insurance consultant and highly recommends term insurance as a great option for cheap life insurance for newlyweds and young families.