Life Insurance Considerations When Getting Married
An ideal time to revisit your life insurance policy is when you are getting married. Besides seeing marriage as a covenant or contract, it can also become an exchange of assets and protection between the two involved. Depending upon the age of the two getting married, and the extent to what each brings to the table, life insurance can, and will almost always, be a fundamental staple item for both parties.
Younger couples with tight budgets may look toward term life insurance to fulfill their basic need to provide income replacement and final expense funds. Whether it is for a bread-winner, homemaker, or duel income household, term life insurance is an inexpensive and smart way to protect your loved ones if a tragedy were to strike. Those younger couples with more affluent financial situations may look into a combination of term life insurance and permanent life insurance or simply all permanent life insurance as a way to protect income and to help save for a tax-free or tax-reduced retirement.
Many older couples that get married may still find a need for term life insurance or permanent life insurance in their retirement and estate planning portfolios, even if they are simply looking for a companion with no intention of exchanging assets. Few people use term life insurance for such purposes, but they may do so if they are looking to pay substantially lower premiums for a policy that could protect them well into retirement. Then they will invest the difference with what they would have been paying for the same coverage had they had permanent life insurance into investments instead.
Buying term life insurance and investing the difference could be a decent strategy when the market is a “bull”, but when it is a “bear”, people may want to consider purchasing cash value permanent life insurance instead. Married couples at any age level should be weary of using investments as a substitute for permanent life insurance unless they are not healthy enough to get the insurance.
The fact of the matter is, there simply is no better estate preservation tool than permanent life insurance, and there probably never will be!
About the author: Kyle McDonald holds FIC, FICF, FSCP® & CLTC designations. His viewpoint on life insurance is simple, “Anyone with a family must have life insurance. In the end, life insurance is for others you care about, not you.” He is ready to help you and your family get the best option available. Contact Kyle today at 1-800-651-1953 or KMcDonald@Pivot.com.