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Life Insurance for Newlyweds: A Comprehensive Guide

You’ve just said your “I dos” and pledged to love each other through sickness and in health and till death do you part. But in the afterglow of your wedding, the last thing you actually want to think about is the sickness or death of a spouse. Unfortunately, life is full of curveballs, and you’ll be more prepared for them as a team if you dare to think into the future. Life insurance is one of the many tools that can help you strengthen your financial footing as you begin this journey together. Here’s what newlyweds need to know about shopping for life insurance.

Why Should Newlyweds Buy Life Insurance?

Life insurance premiums are cheaper the younger you are, since you’re less likely to develop life-shortening health problems. But do you really need the added expense? Here are some scenarios when it can make sense to buy a policy—or not.

When Newlyweds Might Need Life Insurance:

• You have debt: Some couples share responsibility for debts from having joint accounts or living in a community property state. Unexpectedly losing an income can leave a surviving spouse unable to cover debt payments, such as car and student loans, a mortgage, and credit cards. A life insurance payout can ensure debts are paid.
• You want end-of-life expenses covered: An unexpected death could leave the surviving spouse facing medical bills, funeral costs, legal fees, and more. Life insurance can cover these costs to prevent the surviving spouse from draining savings or acquiring debt.
• You want to leave financial security: Losing a spouse’s financial support—especially the primary earner’s—can leave someone with more bills than they can handle solo. Life insurance offers a safety net for surviving spouses to make ends meet.
• You have kids or plan to: Raising kids is expensive, so life insurance can be a form of estate planning to support the surviving spouse’s future ability to care for your children.

When Newlyweds Might Not Need Life Insurance:

• You have sufficient workplace coverage: Some employers offer free or low-cost life insurance as a benefit, sometimes with the option to pay for higher coverage. If you and your spouse already have enough coverage from an employer policy, it may be unnecessary to buy a separate policy.
• You’re comfortable financially: If you and your spouse already have solid savings, healthy incomes, and minimal debt, the cost of a policy may not be necessary.

Life Insurance Options for Newlyweds

There are multiple types of life insurance policies, and it’s important to select the right one for your situation so you don’t spend more than necessary.

Individual vs. Joint Policies

Adults can buy individual life insurance, but married couples can also opt for a joint policy. Joint policies cover you both, usually for less than buying two individual policies. It’s often used if one partner can’t qualify for their own policy due to health issues, or for couples with kids who use it for estate planning.

Term vs. Whole Policies

Life insurance comes in two main categories, term and whole life, and their costs and death benefits vary greatly.

• Term life insurance: More affordable since it’s temporary coverage for a set time, often 10 to 30 years. If the term ends with you alive, the policy ends without payout.
• Whole life insurance: Permanent, lasting until death as long as you continue paying. Premiums never rise, but they’re usually pricier than term policies. Whole life policies have cash value that grows tax-free over time.

How Much Life Insurance Should a Married Couple Have?

Once you’ve determined what type of policy is best for you, you have another decision: how much life insurance you need. Some experts recommend buying a policy worth 20 to 30 times your salary. However, this rule of thumb doesn’t apply to everyone, so carefully weigh if this amount is more or less than what your family would need.

How to Save Money on Life Insurance for Newlyweds

Getting life insurance does mean adding another monthly bill, but there are ways to save money on a policy:

• Bundle up: Most insurers offer discounts for customers with multiple policies. Check if you can score savings by bundling life insurance.
• Try a joint policy: Joint life insurance is typically more affordable than two individual policies.
• Don’t over-cover: Avoid taking out more coverage than truly needed so premiums don’t cut into other priorities.
• Consider term coverage: Whole life policies usually have higher premiums, so consider starting with a term policy now.
• Know cost-raising factors: Understanding what impacts premium rates can help you lower costs or decide if one or both of you can afford coverage.

The Bottom Line

Not every newlywed couple needs life insurance or can afford premiums yet, and that’s OK. What’s important is that you’re familiar with how it works and when you might need it, and you’re prepared to buy a life insurance policy if and when the time is right. It’s not easy to think about death when you’re just beginning your life together, but similar to building credit, getting on board with life insurance when you’re young can save you money and stress down the road.

For any mortgage service needs, contact O1ne Mortgage at 213-732-3074. Our team is here to help you navigate your financial journey with ease and confidence.

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