Congratulations to the bride and groom! As newlyweds, you and your significant other have many important decisions to make as you begin your new life together. This includes a financial strategy to protect your family from unexpected life events.
Taking care of finances and planning your future together is an important part of your journey as a married couple. Buying life insurance is worth considering to help secure your future.
As you start this chapter as newlyweds, you can take your first steps toward a better financial future by learning about life insurance. To help you to get started, here are some fundamental things that you must know:
Benefits of life insurance. An insurance product can help you save up for future milestones, like buying a house, starting a business, or funding a child’s education. Health protection is another important benefit, as it can help you recover from an illness while also staying financially secure. You can also grow your savings through a life insurance policy that includes an investment feature.
Life insurance coverage. When choosing your life insurance policy, consider factors like your age, health, income, living situation, and future financial goals. This 2023 article states that the rule of thumb for newlyweds to have a life insurance coverage of at least 10 to 15 times their annual income.
Right age to get life insurance. Experts suggest getting life insurance while young and healthy is most ideal. The same applies to life insurance for newlyweds who can enjoy lower premiums. As you age, the more expensive it is to purchase due to potential health issues.
Types of life insurance. There are different types of life insurance products that you and your spouse can consider. Newlyweds can select a wide range of life insurance products that meet your specific needs and goals. Here are two primary categories of life insurance:
- Term life insurance. This is a suitable life insurance for newlyweds who are just starting and may have limited finances. It offers affordable coverage for a fixed period. If the insured dies within the term of the policy, the surviving spouse or another beneficiary is paid with a death benefit. Term insurance is less expensive than permanent life insurance since it is for a specific period only but does not accumulate cash value.
- Whole life insurance. This type of life insurance is a good option if you want to make sure that their loved ones are financially stable. It offers coverage for the policyholder’s entire life and, depending on the product, may accumulate cash value over time. It is usually more expensive than term life insurance because it covers the insured throughout his lifetime and provides a death benefit and cash value to their beneficiary.
Right life insurance provider. You and your significant other must select a life insurance provider that has a good reputation, outstanding customer service, and offers a diverse selection of insurance products that meet your specific needs and goals. With the right provider; your loved ones will receive the necessary financial support should life throw surprises your way.
Understanding the basics of life insurance can help you and your spouse make informed decisions to ensure the financial stability of their families in the years to come. Have a conversation with your partner and choose the coverage that best suits for both of your goals.
As your Partner for Life, we offer life insurance products that newlyweds like you can avail of as you work your way to financial freedom. We offer different product solutions for every life stage, from health-protection plans to investment-linked products. You can choose from a variety of life insurance depending on your budget, needs, and goals.
As you start your family, Sun MaxiLink Bright is an investment-linked life insurance plan that helps you prepare for your child’s education needs. It also offers investment options that allow your money to grow over time.
Want to know more about life insurance for newlyweds that will bring you financial security? Connect with a Sun Life financial advisor who can help you achieve your goals for you and your family today!
ALSO READ: How to make financial decisions as a family
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