Newlyweds traditionally receive advice from friends and relatives on the secrets for a successful marriage, but any tips on protecting their financial future seem to go begging in these heartfelt conversations.
The experts say that in general, individuals should purchase policies that amount to at least five times their current salary, but that figure should be balanced against a couples’ long-term goals. Newlyweds should meet with a life insurance professional to review all their options and considerations.
We offer newlyweds the following checklist as guidelines when thinking about life insurance coverage:
Talk to an Expert:
Work with an insurance professional to evaluate your financial needs and goals and to determine how much life insurance you and your spouse will need. Each situation is different and it’s important to learn about possible coverage amounts and options.
Plan for the Future:
Do you plan on having children? Will you have debts that would need to be paid? Will you have enough to cover your children’s education costs? Will you have aging parents that may need taking care of? All of these common life situations require planning. Having life insurance in the event of untimely death can help provide an added layer of protection for these situations.
Don’t Rely on Savings Alone:
Many people do not have enough in their personal savings, and if people don’t have enough saved, their family most likely won’t be able to pay off final expenses or be able to hold onto assets like a home.
Life insurance is important to have that added layer of protection.
Employer-Based Coverage is Not Enough:
Typically, group life insurance through an employer isn’t portable – meaning if an employee leaves the job, he or she is probably also leaving the life insurance protection behind. Having an individual life insurance policy purchased through an insurance agent or financial professional, however, will have no effect on the coverage provided by an employer.
— Pennsylvania DoBS (@PAFinancialReg) June 10, 2017