The
time right after marriage is typically a
whirlwind of activity. A lot of the day
to day practical concerns takes a short
hiatus and with good reason. Between
making plans and the actual event, not
to mention the honeymoon, there doesn't
seem to be any free time left for
anything else. Probably the last thing
on your mind is insurance and
especially, life insurance but as soon
as the dust settles, it makes sense to
take a look at your current term life
insurance standing and make sure it
reflects your new setup. There are
actually two major considerations we'll
take a look at.
Marriage is one of those big ticket
items in life that change everything.
Right up there with the birth of a
child, you really don't realize just how
important or perhaps, how much of an
impact it will have on your life over
the long run. For many people, marriage
will be a blessing and great addition to
their lives but for a fair number, it
will end either with a wimper or bang.
I have now been married 10 years and it
seems this is about the time that many
couples we know are in the throes of
ending right now. Some marriage endings
are cordial while many are downright
nasty. Like with the original marriage,
many practical matters such as the
standing of term life insurance end up
on the perpetual to-do list and this can
come back to really haunt a person
later. It's not uncommon for marriages
to be second or even third marriages.
It's important for the newly-weds to go
through their respective financial
affairs including life insurance and
make sure it's all in order. There may
be changes in beneficiary that are
required to remove the original spouse
which is generally filling that spot.
There may also be changes in address,
phone numbers, and billing information
as the two newly member individuals make
large-scale lifestyle changes. This
updating of existing policies is very
important. The last thing you want to
happen is have an term life insurance
triggering event and find out the
beneficiary detail still reflects the
original spouse. This is a nightmare
and by the time it's found out, there's
usually very little we can do.
A new
marriage also necessitates thinking
forward in terms of life insurance
planning. Invariably, you how have a
new consideration in terms of providing
for dependents whether it's just your
new spouse or potential children later
on. You also need to look at what your
new spouse has in terms of life
insurance. Obviously, the basic need
for life insurance is primarily driven
by replacing income, to assume that
there won't be financial implications of
a non-working spouse passing away is
risky at best and we address this
concern in detail with other articles.
Many times, newly weds will determine
that life insurance is less important
than saving for a house or other
purchase not realizing that the cost of
term life insurance is directly tied to
the age of the insured and only goes up
with more time. There's no better time
than right now to apply for term life.
So
the need for life insurance
self-reflection on behalf of newlyweds
is two-fold. First, you want to make
sure all the information on existing
policies is correct. Secondly, you want
to make sure that your new family
insurance needs do not merit changes in
your term life insurance coverage. Both
are equally important and we're here to
help you in any way.
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