What to Know About Life Insurance and Marriage

June 15, 2018

As we close out the month of June and head into the summer months, we are also entering one of the most popular times of year for weddings. It’s not uncommon for engaged couples to spend well over a year planning our every detail of their weddings from their guest list to their decorations to their honeymoon, but getting married also requires a great deal of planning in other areas.

It’s common for married couples to consolidate finances, and insurance is also something that will be affected by a new union. In a 2017 survey, 39 percent of married Americans stated that they wished that their partner or spouse would purchase more insurance coverage, and 10 percent of respondents said that they did not know how much coverage their partner had or if they even had any. It’s very important to discuss this topic with your soon-to-be-spouse as early as possible so you will have everything sorted out for your life together.

Why Life Insurance is Important for Married Couples

As with any other major life change, marriage is a time in which you should re-examine your life insurance coverage. Here are some of the reasons why:

• Your finances are changing. Though married couples typically combine their incomes, they also typically take on larger financial obligations once they’ve combined households. If you’re planning on having children or buying a new car or home, you will want to make sure that you can cover any mortgage payments, loans, or other costs. As your finances change, it’s recommended that you re-examine your life insurance coverage to suit your present situation.
• You will have new dependents. Even if you are not planning on having children, you should think about your spouse. In some states, if you or your spouse pass away unexpectedly, the surviving spouse will be responsible for any debts in joint accounts, as well as debts taken on after marriage (such as personal credit card debt). Whether both are working or there is one breadwinner, it’s also important to have a policy that will create a legacy for the surviving spouse or any children to replace the lost income.

The Best Coverage for Married Couples

The best type of life insurance for you always depends on your financial situation, how long you would like to be covered, and what you would like covered. Here are some of the best options for married couples:

• Term life insurance - Since term life insurance offers coverage for a pre-set amount of time, it can be good to have this type of insurance during the early years of your marriage as you set up your family. If you’re looking to have inexpensive temporary coverage while you save for a home or raise your children to adulthood, this could be the right policy for a married couple.
• Whole life insurance - If your household is already set up and you want to ensure that you and your family are guaranteed to be covered, a whole life insurance policy will last for your entire life and will provide a death benefit no matter when you pass away.

If you’re undergoing any major life changes, make sure you talk to your life insurance agent to find out how that may affect your insurance coverage.

About National Catholic Society of Foresters

At National Catholic Society of Foresters, we pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. Sales from our financial services products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs. Our portfolio is extensive, ranging from various life insurance policies to IRA’s to support your financial needs no matter what stage of life you’re in. For more information, contact our friendly experts today at (855) 804-7424.