Congratulations on embarking on this new chapter of your life! You are building a shared future, entwining dreams, and melding financial worlds. And one essential aspect of this new chapter is considering life insurance.
Now, deciphering insurance nuances might seem daunting amidst wedding bliss. But we’re here to untangle the knots. So, let’s dive into five critical questions to guide your life insurance decisions.
What insurance types are available?
Depending on your circumstances, there may be different types of insurance to look at – from life insurance through to income protection, trauma, and health insurance. Without going into too much detail:
- Life insurance can form a vital piece of your safety net, as it pays out a lump sum to the people you leave behind in case you’re no longer around. We’ll tell you more about this type of cover shortly.
- Income protection provides a regular income if you can’t work due to illness or injury, ensuring ongoing living expenses and debt repayments are met.
- Trauma Insurance pays a lump sum upon diagnosis of specific illnesses, providing financial support during a challenging time.
- Health Insurance covers the cost of private healthcare, allowing prompt treatment without burdening your budget with the costs of medical care through the private system.
Keep in mind that this is just a top-level summary of what these types of cover do and how they work. If you’d like to learn more, feel free to get in touch anytime.
If you’re looking at life insurance in particular, read on for some questions to work out if life cover is for you and – if so – how much of it you may need.
When is life insurance important worth considering?
Life insurance acts as a financial safety net, financially protecting the surviving partner from the economic impact of the other’s unexpected death.
Of course, the loss of a spouse is emotionally challenging, and the financial impact can add to the stress. So, that’s where life insurance can make a difference: by delivering a lump-sum payment, it can help those you leave behind clear debts, cover living expenses, and even fulfil future financial goals (depending on the amount you choose).
How much life cover do we need?
Provided life insurance is suitable for you, the appropriate level of life insurance cover depends on various factors – including the lifestyle you envision, your combined debts, your income, and your financial dependents.
A useful starting point is to calculate the financial impact of losing one income. Consider outstanding debts like your mortgage, car loans, and credit card balances. Then, think about ongoing expenses: utilities, groceries, insurances, and discretionary spending. Finally, factor in future plans, like children’s education or retirement savings. Ideally, your life insurance should cover these costs, ensuring your partner can maintain their standard of living without financial strain.
Do we need life insurance even if we don’t have children yet?
There’s no denying that having children makes life insurance all-the-more important, but it’s relevance isn’t restricted to couples with kids. Once again, whether you need life insurance or not depends on your circumstances.
Ask yourselves: could you manage financially if your partner’s income disappeared? Would you be able to make mortgage/debt repayments or pay the bills? If the answer is no, life insurance can provide the buffer you need, when you need it most.
Can we afford life insurance?
The cost of life insurance varies widely depending on factors like your age, health, lifestyle, and the cover amount. And while it may seem like another expense, it’s also essential to weigh this against its value.
Could you afford your current lifestyle and meet financial commitments without your partner’s income? If not, you probably can’t afford to be without life insurance. If you’d like to discuss your personal options in more detail, get in touch: we can work with you to find a policy within your budget.
We’re here to help
The appropriate level of insurance cover can help you protect your shared future, providing peace of mind as you navigate life’s highs and lows together.
As insurance advisers, we can guide you through all the key considerations. We’ll help you understand your needs and start your married life with more security and certainty.
Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.