There's a reason why many traditional wedding vows range from the phrase “till death do us part.” Whenever you marry someone, you're pledging to stay by their side until the end of their life. But, even though people get this to pledge in front of family, friends and an variety of expensive wedding decorations, they don't actually consider what might happen if death would part them.
The death of the spouse can be financially devastating for that surviving partner – especially if the partnership has expanded right into a family. A lot of couples realize that term life insurance is an affordable way of protecting loved ones against financial hardship. While they often assume that just the primary breadwinner requires a life insurance coverage – or that the partner using the higher income needs more life insurance coverage compared to partner with less income.
This type of thinking has led to a life insurance gender gap, in which men with life insurance take out nearly twice as much coverage as women do. However, both women and men have to consider all of the financial advantages they bring to their marriages and partnerships: income, caregiving, household management and so forth. It's not hard to know how life insurance coverage can replace the salary of a primary breadwinner, but some people forget that life insurance coverage can also cover child care costs if something would occur to the main caregiver.
Do you and your spouse need life insurance coverage? In many cases, the answer is yes. Whether you're married, domestic partners or simply sharing an existence with someone you love, taking out a set of affordable term life insurance policies can provide both financial security and reassurance.
Let's take a look at the different spousal scenarios where you as well as your partner may require life insurance coverage.
Do both spouses need life insurance coverage?
The first big question to ask on your own is whether you and your spouse both need life insurance. Is a spouse's life insurance coverage enough, or should the two of you get policies? Would you both need life insurance if you're still inside your 20s, if you do not intend to have children or if certainly one of you is really a full-time student?
Financial bloggers Kelan and Brittany Kline, referred to as Savvy Couple, shared their life insurance story with Haven Life. Each of them took out Haven Life coverage because they desired to help ensure their long-term financial security regardless of what happened.
“When you are looking at being financially savvy, having peace of mind and knowing your family will be protected later on, getting life insurance is really a no-brainer,” Kelan Kline says.
Do spouses require the same amount of life insurance?
The newest question you will need to answer is how much life insurance coverage you and your partner both need. Should you both remove the same amount of coverage, or do you individuals need a larger life insurance coverage?
There's a strong argument to make for both partners detaching the same amount of coverage. When The Savvy Couple bought their Haven Life plans, they elected to get $500,000, 20-year term life insurance policies on each partner. “We desired to ensure that contrary became of either of us another one would still be financially sound,” Kline explains.
However, additionally, there are an argument to make for calculating your lifetime insurance policy needs based on the amount of income your spouse or partner will have to develop after your death. Company, that might imply that one of you should buy more coverage.
When you're carrying this out type of calculation, make sure you consider all of the angles. How much cash would your partner need to cover the day-to-day costs of living, from rent or mortgage payments to childcare costs? What about long-term financial goals, such as putting your kids through college? Think about the type of life insurance coverage benefit you would like your loved ones to receive if the worst-case scenario occurs, to check out an insurance policy that gives that sort of coverage.
Use an online life insurance calculator to determine how much coverage you and your spouse might need.
Do children need life insurance too?
Sometimes parents wonder if they ought to remove life insurance for their dependent children. This really is less to safeguard against a possible income loss and more to cover the often expensive costs of the funeral and burial.
If the worst-worst-case scenario occurs, the last thing you and your spouse may wish to think about is how you are going to pay for your child's memorial service. However, even though it often makes sense to purchase life insurance on both parents regardless of the quantity of income they earn, children rarely need their own life policies.
When are you looking for spouses to consider life insurance coverage?
In an ideal world, you and your partner might have started referring to buying life insurance coverage in your wedding-planning process – because purchasing affordable life insurance coverage is just as important as nailing down that wedding venue, right? Having said that, most of us live in the real world, and only consider life insurance when we seem like we have something worth protecting.
For lots of couples – including Kelan and Brittany Kline – that starts with the birth of their first child.
“Before we'd our daughter we had talked about needing to get life insurance coverage to better protect our growing family,” Kelan Kline says. “It took us a couple of months after she was born, but we finally spent the time to research life insurance and Haven Life kept visiting the top as good option.”
Some couples decide to buy life insurance coverage after getting their first mortgage. Others take into consideration their overall financial targets too.
“We decided for all of us to feel comfortably covered, we'd each wish to have coverage totaling at least the anticipated cost of our mortgage and some for the son's college,” says Cheri Kevane, a company consultant at Haven Life.
Regardless from the timing, a web-based life insurance coverage calculator will help you as well as your partner figure out what coverage works well with your loved ones.
What spouses should think about when buying term life insurance
When you're evaluating life policies and comparing quotes, here are some questions you should ask yourself:
How long would you like your coverage to last?
Term life policies offer coverage on the specific period of time (that's what the “term” part means). You'll often see policies offering 10, 15, 20, or 30-year terms. It's wise to choose a term length which will protect your loved ones once they require it most – whether you're matching a 30-year term policy to a 30-year mortgage, or getting a 20-year policy to cover your family until your kids develop.
How much will your coverage cost?
Term life insurance coverage premiums are very affordable. The cost of a term life insurance policy will depend on your age and health along with the term length and coverage amount you select. The following are sample quotes for any Haven Term policy, from MassMutual, for people in excellent health:
Do you need to take a medical exam?
Medically underwritten term life coverage is often the most affordable types of coverage. These policies take into consideration how old you are, lifestyle choices, and private and family health history to determine eligibility and pricing that's personalized for you. These policies often need a medical exam, although not always.
Thanks to innovations in underwriting, some medically underwritten policies – such as the Haven Term policy – can be bought without a medical exam for any subset of applicants that qualify to skip it. Once a customer submits a credit card applicatoin, they'll be instantly notified whether they qualify to skip the medical exam or not. Remember that it's always very important to be honest within the application process. The issuance from the policy or payment of benefits may depend upon the answers you allow within the application and your truthfulness.
Some types of term life insurance don't require a health check. For instance, simplified issue policies typically require applicants to fill out a short questionnaire in the underwriting process, with some health-related questions. No health check is needed to apply and obtain a coverage decision. While a 100% no-medical-exam life insurance coverage will usually cost more monthly than medically underwritten coverage, it may be a good option for individuals who know they absolutely don't want to take an exam.
Keep in your mind that the medical exam may appear intimidating, but it's is a pretty straightforward process. Using the Haven Term policy, the exam itself takes about 20 to 30 minutes and also the paramedical examiner who's conducting test can meet you at your home, your work or the exam office.
Choose the option that works best for you and your spouse
Term life insurance coverage isn't a one-size-fits-all solution for couples. Your funds, your lifestyle – they all play a significant role in determining what coverage fits your needs.
However, life insurance is an extremely valuable solution in order to to ensure you possess a financial legacy to leave your loved ones – regardless of current status of your savings accounts.
The best thing you and your partner can do would be to take a seat and have a conversation about your wishes for that other person if you were no more around. And what the financial impact of that loss would be.
It's not the simplest of discussions, but it is a vital one. Each individual in a marriage or partnership should feel secure and financially protected no matter what life throws at you. After all, reassurance is critical to the happy partnership.