Originally Posted On: https://www.iquanti.com/
When you marry someone, your life insurance policy doesn’t change automatically, but getting married is a good time to review your existing coverage, update your beneficiary(ies) and consider whether you need to add more death benefit. You’ll want to review your options together with your partner, as life insurance is an important component of financial planning for your future. In most cases, both spouses will want to have some sort of life insurance policy, but if you already had one before you got married it doesn’t necessarily need to be replaced.
Here are some things to consider about your life insurance when you get married:
Is my spouse my beneficiary?
It’s common to name a spouse as the beneficiary of your life insurance policy so that if you pass away your spouse will not face financial hardship.
- You will need to designate your beneficiary(ies) yourself.
- Changing your beneficiary(ies) doesn’t change your policy’s coverage. However, you may want to evaluate if your current policy will provide adequate coverage for your spouse.
- You can name multiple beneficiaries on your policy (although some companies limit the number of beneficiaries you can name).
How much life insurance do we need?
Every couple is going to have different needs for life insurance depending on their circumstances. If you don’t already have children and plan to in the future, you may want to consider getting a new policy at that time so that you can adequately cover your spouse and your children.
- As a rule of thumb, each spouse should have a life insurance policy worth 10-15 times their annual income.
- If one spouse doesn’t work in order to care for children, you may want to consider a policy that would help cover the costs of childcare and other related expenses.
- You can use this life insurance calculator to estimate how much you need.
Should we think about permanent life insurance?
Permanent life insurance is designed to last your entire life as long as you pay premiums and comes with the unique benefit of accumulating cash value over time. Permanent life insurance may not be for everyone, but it’s certainly worth considering when planning for your future. Don’t hesitate to review your options with a professional financial advisor.
The bottom line
Life insurance is an important point of discussion in any marriage, as it helps you and your spouse provide a financial safety net for one another. Talk about your future goals and plans while you review your options and ensure that your life insurance policy provides you with enough coverage and is aligned with your plans for a fantastic financial future.
