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The Newlyweds’ Guide to Life Insurance

Happy young couple hugging and smiling while holding coffee cups.

Marriage is about building a life together. Life insurance is a safety net that helps protect what you are creating. Although it may not be the first thing on your mind after the honeymoon, creating a strong financial plan should be high on your to-do list. Your financial strategy should include planning for risk and buying life insurance. 

Why Should Newlyweds Consider Life Insurance?

After marriage, your financial lives are intertwined. If you are supporting each other’s career goals, sharing a mortgage, or planning to start a family, life insurance can be a cornerstone of financial security for the following reasons:

  • Income protection: If one partner dies unexpectedly, the other could be left shouldering financial burdens alone. Life insurance can allow the surviving spouse to maintain their standard of living without added stress. 
  • Debt coverage: Shared debts, such as mortgages, car loans, and student loans (if you live in a community property state and the debt was incurred after the marriage), do not disappear if a spouse passes away. Death benefits from a life insurance policy can cover these obligations, so the surviving spouse is not left in financial distress.
  • Family planning: If you plan to have a family, life insurance can provide financial support for your spouse and future children, funding everything from daycare to college tuition. 
  • Lower premiums: If you buy life insurance when you are young and healthy, you can lock in lower premiums, making the policy more affordable in the long run. 

How Much Life Insurance Do Newlyweds Need?

Not everyone needs the same amount of life insurance. A general rule of thumb is to aim for coverage at seven to 10 times your annual income. However, as specific needs can vary, newlywed couples should consider their unique situations to determine the right amounts of coverage for them. Key questions to ask include:

  • What are your current financial obligations? Add up the total of your car loans, mortgage, and any other shared debts. 
  • How much income would your spouse need to maintain their current lifestyle? Consider monthly expenses and how long your partner will need financial support.
  • Are you planning for future expenses? Factor in the costs of raising a family, saving for your retirement, and your financial goals and dreams for the years ahead

What Types of Life Insurance Are Best for Newlyweds?

After you have an idea of how much coverage you need, the next decision is what type of life insurance is right for you. The choice usually comes down to either of the following two types of policies:

  • Term life insurance: This is straightforward and affordable coverage for a specified period, such as 10, 20, or 30 years. It is a practical choice if you need substantial coverage, but your budget is tight.
  • Whole life insurance: This type of policy provides lifelong coverage and builds cash value over time. Although the premiums are higher, it doubles as a financial asset and a savings component to provide long-term security. 

If you are newlyweds considering life insurance, speak with our friendly agent. We can help you find the best available life insurance coverage rates that suit your needs.