The vows have been said, the knot has been tied, and you’re now an official party of two!
Congratulations, newlyweds. There are so many exciting milestones ahead and already so many precious things to protect—most importantly, each other.
Why Do Newlyweds Need Life Insurance?
As young newlyweds, you’re building a life together, a standard of living supported by both partners’ contributions. If one partner were to pass away, the survivor would not only bear the burden of grief but also the financial pressure of funeral expenses, mortgage payments, shared assets, loans, and debts.
Securing life insurance as a newlywed is a profound expression of your love and a crucial step in life and family planning.
What’s the Best Way to Secure Coverage for Both Partners?
While newlyweds have plenty of options, a quick “marriage + life insurance” Google search often leads couples to information about joint coverage, spousal riders, and term life insurance policies.
Here’s a brief overview of each and why we believe individual term life insurance policies are usually the best choice for young, healthy (and very in love) newlyweds.
What is Joint Coverage?
- First-to-Die With a first-to-die policy, the death benefit is paid out upon the death of the first partner. It’s important to note that while the surviving partner will receive the death benefit, they will also no longer be covered by the joint life insurance policy. At this point, they’ll have aged (at least to some degree) and will face higher premiums if they apply for a new policy.
- Second-to-Die Policy With a second-to-die policy (also known as survivorship insurance), the death benefit is allocated once both people on the policy have passed. While it can provide support for estate planning and surviving dependents, this policy will not provide a payout that could have been helpful at the time of the first partner’s death.
While some couples choose joint insurance for its potential cost savings, we generally suggest against it because of these downsides:
- Loss of coverage for survivors in first-to-die policies
- Lack of flexibility and customization available when each partner has their own policy
- Loss of coverage and other potential challenges if a couple separates
What is a Spousal Rider?
In this scenario, one partner has a life insurance policy (be it term or permanent) and the other partner is included via a spousal rider. This rider guarantees that the insured person would receive a death benefit if their partner were to pass away.
Pros:
- Potentially affordable way of having coverage for both partners
- A good option if one partner does not qualify for their own policy
Cons:
- The death benefit associated with the spousal rider is usually (significantly) less than the death benefit associated with the base policy
- The spousal rider ends when the base policy ends or in the case of divorce
Individual Term Life Insurance Policies
Term life insurance policies are simple and affordable plans designed to protect your family throughout the years when you’re paying a mortgage, raising children, and saving for their education.
Young newlyweds often find that having individual term life policies provides them with the most flexibility and the highest amount of coverage for the term they choose (usually 10, 15, 20, or 30 years).
When choosing a term life insurance policy, we recommend UniTrust Financial Group Level Term. These simple, budget-friendly plans do not require a medical exam* and come with coverage options up to $1M. With a UniTrust Level Term policy, you can apply 100% online and receive an instant decision—all in less than 10 minutes.
The great thing about choosing a term life insurance policy is that it can evolve right alongside your needs. As you reach new milestones, like adding kids to the mix or moving from that darling 2/1 to a roomier 3/2, you can add coverage, extend the term length, or even consider converting from term to a permanent policy.
UniTrust Financial Group supports clients nationwide with a comprehensive wholesale ecosystem tailored to your insurance needs.
UniTrust empowers clients by revolutionizing the way life insurance is applied for and purchased.
Begin your journey today.
The content provided on this blog is for informational purposes only and should not be considered financial, investment, legal, or tax advice. UniTrust Financial Group does not guarantee the accuracy, completeness, or timeliness of the information presented. Any reliance on the material is at your own risk.
Before making any financial decisions, we strongly recommend consulting with a qualified financial advisor or professional. UniTrust Financial Group is not responsible for any losses, damages, or issues arising from the use of this blog’s content.
This blog may include links to third-party websites for additional information. UniTrust Financial Group does not endorse or take responsibility for the content, accuracy, or privacy practices of external sites.
By using this website, you acknowledge and agree to this disclaimer.
