These are all important areas to consider.
- Many people get life insurance when they get married to protect their spouse.
- It is important to thoroughly discuss your options and get on the same page with your partner.
Getting married means making a big commitment. After all, you are signing up to share your physical and emotional space with another person. And in most cases, you’re also signing up to pool your money.
Talking about finances, once you get married, you probably want nothing more than to protect your spouse from financial difficulties. A good way to do this is to shop life insurance.
But it is not a decision that should be made by each married person. However, you and your spouse should be in agreement so that you are both satisfied with the amount of life insurance you are placing. Here are some questions you should ask as you go through the life insurance shopping process.
1. How much life insurance should each of us have?
If you and your spouse earn the same amount of money, you can choose to have the same amount of coverage on each of your policies. But maybe that’s not the case. And if you earn, say, $100,000 a year and your spouse only earns $40,000, it may not be necessary to buy a lot of life insurance for your spouse.
On the other hand, your spouse who has less income can be the one to take care of your children if you get them. You may not want to shell out life insurance for them even though they have low wages. Have that conversation so you don’t end up over- or under-purchasing insurance.
2. How many years of insurance do we need?
If you buy a whole life insurance policy, will protect you throughout your life. But whole life insurance can be very expensive, many people find that permanent life insurance a more affordable option. In that case, however, you need to determine how many years of insurance you need.
If you and your spouse are in your 30s, you may decide that a 30-year policy for each of you is a good bet, since it means that the of the insurance until retirement age. Or, you can choose to opt for only 20 years of coverage, the idea being that if you don’t have children soon, the 20-year policy can get you to the point where they are old enough to go to college and start care. their own.
There is no right or wrong answer. The idea, however, is to put on a period of insurance that you both like.
3. What does our joint debt look like?
The purpose of providing life insurance is to ensure that your spouse is not left behind when you die. So you want to consider the debts you have together when deciding how much insurance to buy.
Most people expect to buy enough life insurance to replace 10 years of income. Some have chosen to replace 20 years of income. In addition to replacement funds, you’ll want to secure a high-payment life insurance policy to cover joint debts that may be a burden for a surviving spouse. So if you and your partner owe $250,000 on a mortgage loanthat’s a number based on your calculations.
It’s a good idea to buy life insurance, whether you’re newly married or have been married for years. And it is equally important to discuss these questions together so that you and your spouse can get the right amount of insurance.
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