So you just got married or planning on it and not sure what to do with the topic of life insurance. Well let me help you out “Get It”. The reason is that if you’re like most new families you’ll have children, buy a home, share debt and depend on each others income down the road, if not already. Life insurance rates are determined by your age and health, so it’s best to secure a policy while you’re still young and healthy. Not to mention, you get to lock in a lower monthly rate when you don’t procrastinate.
Speaking of procrastinating, I can’t even tell you how many people go without life insurance even though they have families until it’s too late. It’s very common for someone to have a stroke or get diagnosed with a major illness and then start thinking about life insurance. The unfortunate part is that depending on the preexisting condition many companies may not offer a life insurance policy at all or if they do it will be at a rate similar to a Mercedes payment.
Now that we don’t have to ponder on whether to get life insurance, let’s use our brain to figure out what type of coverage and how much of it to get. Once we get that sorted we’ll discuss how not to pay a fortune for a life insurance policy.
Best Type of Life Insurance for Newlyweds
The type of life insurance each person needs is very specific to their situation. However from personal experience majority of newlyweds are better off getting a level term life insurance policy. It’s the most simple to understand life insurance policy that also happens to be the most affordable. Term life insurance allows newlyweds to purchase largest amounts of protection for pennies on the dollar for periods ranging from 10, 20 or 30 years. A lot of people I speak to don’t think they can afford life insurance so below you will find actual quotes for $250,000 and $500,000 20 year term life insurance for a 25 year old male and female:
$250,000 Coverage
Male-$13.13 per month with Banner Life
Female-$11.81 per month with Banner Life
$500,000 Coverage
Male-$20.45 per month with SBLI
Female-$16.28 per month with Assurity Life
You may have noticed that Banner is the company for the $250,000 and there are two other companies for $500,000. The reason is that companies are most competitive at certain coverage amounts. That’s why it’s important to shop around. Oh and guys get charged more because we do stuff like this….
You can also look into some permanent life insurance protection that will provide protection up to age 100 or age 121 if your need for life insurance goes outside of 20 or 30 years. This type of policy is known as a no-lapse universal life and unlike other cash value insurance plans, it’s affordable and is designed to provide lifetime coverage rather than promise investment riches. It is the only form of permanent coverage we recommend. The good news is that if you lock it in while you’re young and healthy that’s what you’ll pay for the rest of your life.
How Much Coverage Should We Get
As far as getting the right amount, there are two ways of doing it. One way is simply using our needs analysis calculator that will provide you with a very accurate amount of coverage to get. It will calculate college education for your kids, mortgage pay off, income replacement, final expenses and other factors.The other way is to simply get enough coverage to pay off a mortgage and provide income replacement for 5 to 10 years. I always recommend the former but it’s important to buy as much life insurance as you can comfortably pay every month.
Getting the Best Deal
With the cost of the wedding and the honeymoon, money can be tight right after. That’s why it can help to get the best rate on life insurance. One of the best ways to do that is to work with an independent agency so you can compare life insurance quotes from all the companies at once. You can actually use our quote engine with no personal information required by filling out the quoter on the right. Also, stay away from many various add-ons known as life insurance riders, they can really bring the cost of your policy up. Another great tip is to pay for the policy annually if you can because most companies will give you a small discount. Beware of cash value life insurance as it can cost a fortune but provide a small protection amount.
It’s very exciting to start on a new life path together that requires more commitment than anything you have done so far. Life insurance is a great way to make sure that your loved one is safe whether you’re there or not. That’s true unconditional love and that’s what marriage is all about.
