As you celebrate your relationship milestones with your significant other, wouldn’t it be great to start on a new couple goal? Aim for something that will provide stability and security to your relationship – like life insurance. Yes, you read that right. Life insurance for young couples like you.
Getting life insurance may not be at the top of your mind when you were young, single and career driven. But now that you’re married, your life is intertwined with your partner in more ways than one. And this includes finances, business, income and debt. Every financial decision affects you both. Be it buying a car, a house, taking out a loan, going into business, sending kids to school, leaving an inheritance and so on. Given these financial responsibilities, life insurance provides you and your partner the financial stability you both need in the event something happens to either of you.
The age advantage
If you’re thinking of postponing life insurance, you’ll be missing out on a valuable opportunity. For one thing, life insurance premiums are cheaper when you’re young because of longer life expectancy. Being young also means you’re likely to be in good shape. Which again translates to low health risks, thus lower insurance costs. With life insurance, even if you develop a serious illness later in life you’re still covered.
On top of affordability, getting insurance as a young couple gives you both peace of mind. If something happens to you, and your partner relies on you financially, your life insurance payouts could mitigate the loss of income. Some policy pay out even while you’re living. These cover serious medical issues such as cancer or paralysis. You could also build savings through your policy’s cash value; assets you could use to pay off debts, buy a car, a house or pay student loans.
Choosing what works best
When choosing the type of insurance policy you need, know that there are two broad categories; namely, term life and permanent life. Under permanent life are whole life, universal life, variable life and indexed universal life.
As its name suggests, term life provides protection for a set term or period (usually 10 to 20 years) . If you pass on during the term, your beneficiary will receive a lump sum death benefit. You could also purchase add-ons or riders to customize your coverage and enjoy living benefits, i.e. benefits you can enjoy while you’re alive. Premiums for term life are usually lower.
Permanent life, on the other hand, provides lifelong coverage as long as you pay your premium. It also comes with death benefit. But unlike term life, permanent life builds cash value over time. This can be leveraged to pay for premiums or take out a loan. You can also withdraw cash from the policy but this will reduce the death benefit. While premiums for permanent life are usually more expensive, its cash value feature works best for young people who have more time to build up their savings.
Got more questions?
As you delve into the different types of insurance and their many benefits, you’re likely to come up with more questions. Find the best fit for you and your partner by asking an expert. Call Mercado Global Brokers for more details and we’ll point you to the type insurance policy that addresses your needs. It’s a couple goal that will give your relationship stability and priceless peace of mind.
