For most people, married life marks the start of a new and exciting chapter in their lives. With marriage, you share goals, aspirations as well as finances, which need to be planned out together. While it is exciting to embark on this new journey, it is also prudent to be prepared for any mishaps in life.
That makes a marriage an ideal trigger to buy life insurance, as being prepared for unforeseen possibilities is a practical thing to do. Here, we look at why a term insurance plan is considered an ideal option for newlywed couples.
What Is a Term Plan Insurance?
A term plan is a life insurance product that offers financial coverage to the policyholder for a specific period. With a term insurance, you essentially get financial protection for your family members depending on the plan you buy. The nominee will receive the sum assured in case of the policyholder’s untimely demise within the policy period.
Reasons Why Term Insurance Is necessary for Newlyweds
As a newly married couple, you will have several different types of financial obligations to fulfill. To lay down a solid platform for the future, you must discuss and plan your current and future financial priorities accordingly. As accidents and emergencies do not come with warnings, if something happens to either of the spouses, adequate life cover can protect the other from emotional and financial risks. Here’s a look at why term insurance is a must for newlyweds:
- Cost-effective: A term insurance plan is a lot cheaper in comparison to the other life insurance options. As a newlywed couple, you will be looking to save more for the future and although a term plan comes with lower premiums, the death benefits your nominee will receive is high. In case you meet with a sudden accident, you still make the required financial protection plan for your spouse.
- Increased expenses: After marriage, there is a sudden increase in expenses for the couple. Married life changes the status from ‘me’ to ‘us’ as responsibilities escalate and at times, both participants in the relationship might need to work to make their marriage financially viable. However, the sudden death of a partner might leave the other with huge financial distress. Here, a term insurance policy can be valuable to ensure that your spouse is not left troubled or financially dependent on others to survive. The expenses might increase further if you decide to have children and having a term plan in place could protect the future of your children as well.
- Loan or Debt Repayment: People usually get married in their late 20s and early 30s. At this age, couples often end up taking a loan for buying a car or home as co-applicants. In case of the sudden death of either of the spouses, the entire loan repayment obligation will fall on the surviving partner. This can put a lot of pressure and there might be a chance where the house or car will have to be given away. A life insurance policy can help provide cover against such a devastating situation.
- The sooner the better: Often, most newlyweds put off the idea of buying term insurance until they have a child. However, the earlier you purchase a term plan, the better it is. You will have higher bills to pay and the loss of any income due to the death of either spouse might leave you with a massive financial burden. Hence, it is advisable to purchase a term loan as soon as possible to financially safeguard your spouse. There are many term insurance premium calculators that you can use to find the premium for the term plan you are looking forward to buy.
- Addition of riders: With a term plan, a married couple can also add riders to their policy. By opting for a critical illness rider, you can receive the sum assured if you are diagnosed with a critical illness. At a time where medical expenses are high, a rider with a term policy can potentially help you from burning a hole in your savings.
In conclusion, buying term insurance soon after a marriage has major advantages and can come in very handy. However, before you buy term insurance, it is imperative to figure out the policy that will best suit you and your spouse.