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Congratulations — you're a newlywed! So, when should you get life insurance? That might seem like a strange question to ask at this point in your life, but having the right life insurance could be an important part of maintaining a comprehensive financial plan. This type of solution may help you pursue your life goals and help protect your wealth.
Your needs change as life changes, and getting married is a major life milestone that warrants a review of your financial future to help protect your new spouse if something unexpected were to happen. If you're just married, here are some important considerations for bringing life insurance into your own happily ever after.
Help Protect Your New Spouse
For most people, life insurance becomes necessary when you have dependents. If someone relies on your income to pay for their needs and expenses, you may want to have a policy naming that dependent as the beneficiary.
Now, your new spouse might not completely rely on you financially. Also, a nonworking spouse could probably find employment if something were to happen to you. That being said, whether you're the primary breadwinner or not, life insurance could still help protect your husband or wife by providing additional financial stability. If your spouse does rely on you financially, he/she might not be mentally or emotionally capable of finding employment in the event of your death. A life insurance policy could give your spouse a financial cushion, allowing more time to find a new path forward.
But life insurance could cover more than just a lost income. If you're newly married and share debt or have a mortgage, a life insurance policy could help your partner pay off that balance if you were to die. The purpose of life insurance is to help protect the ones you love, even when you're no longer here. It's one of the reasons that marriage is a life event that could prompt you to reevaluate your insurance needs — and update or take out a policy that could help provide for your spouse.
Young newlyweds might also benefit from buying a policy now instead of waiting until later. While you could consider a policy if you have children, waiting may cost you. Your premiums might go up as you age or experience health problems. Or worse, coverage might not be available to you at all.
What About a Second Marriage?
Maybe you just got married — but you've also been married before. Does that change the answer to when should you get life insurance? If you had a previous policy with your ex, check to see if you can update it. You might want to change the beneficiary to your new spouse, if that's permissible in your situation and not restricted by a divorce decree. If your divorce agreement doesn't let you switch beneficiaries, you might need a new policy.
Having children from your previous marriage could make matters complicated as well. Your new spouse and your children from your first marriage probably can't equally share in the benefit of the policy should something happen to you. You may want to reevaluate your designated beneficiaries.
Life insurance could be an important consideration for every life stage — including marriage. By purchasing a life insurance policy now, you may have greater peace of mind and help protect your new spouse if something unfortunate were to happen.