Securing their family’s financial future is a vital step that everyone should take as soon as possible. One way to achieve this is to invest in life insurance. To put it simply, a life insurance policy is a contract between two parties: the individual and the insurance company. The insurance company agrees to provide a sum assured chosen by the policyholder as life covers for a certain period of time. If the individual dies during the defined period of time, the insurance company will pay the predetermined sum of money to the individual’s nominee as a kind of financial compensation. The afflicted family can then use the sum assured amount they receive however they see suitable. In exchange for getting this life cover sum, the individual must make regular recurring payments to the insurance company. These payments, also known as premiums, are crucial for providing life insurance.
Now that you’ve seen the benefits of life insurance, should a newlywed invest in one? If so, explain why. Let’s look at some of the reasons you might want to buy life insurance after getting married.
Reasons to Buy a Life Insurance Plan When Married
Marriage comes with additional duties. One of those responsibilities is to create a strong financial cushion for your spouse and potential children. There are numerous reasons why you should consider investing in life insurance (if you haven’t done so before) as soon as you marry. Here are some of the reasons:
- It offers your family a financial cushion: As previously said, one of the key goals of getting a term insurance is to provide financial security for your family. And because life can be highly unexpected, you must move quickly to ensure your family’s financial future with the help of purchasing a life insurance policy. In the event of the policyholder’s death, a life insurance policy can provide his or her spouse and children with the financial support they need to cover their daily expenditures and achieve their life objectives in your absence.
- It helps you meet your financial commitments: Given that newly married people are entering the next part of their lives, they may wish to achieve certain life goals, such as acquiring a new home or purchasing a car, which may necessitate them to apply for a loan. Now, if one of the couples, particularly the breadwinner of the household, dies unexpectedly, the surviving spouse has the full burden of repaying the loan. This can cause unnecessary stress in their financial circumstances. However, with a life insurance policy, the surviving spouse can use the death benefit payout to cover any unpaid financial commitments without having to tap into their assets.
- You can reap the benefits of investment: When you start to read about what is term insurance and life insurance, you will learn not all life insurance plans offer simply the death benefit. There are other plans as well that provide maturity benefits, wherein the insurer invests the premiums you pay in various financial assets. This way, you receive the benefits of both insurance and market-linked investment.
Another important reason why married people may choose this option is the possibility of earning market-linked profits on their life insurance investments. The maturity proceeds that you receive at the end of a life insurance plan can be used to meet any of your needs and requirements.
- It can help you plan for retirement: Although you may have just started a new journey with your spouse, keeping your retirement goals in mind is always a smart idea. What better way to prepare for retirement than to invest in a term insurance plan? The maturity benefits you receive at the end of the insurance term might be used to support you and your spouse after retirement. Alternatively, you can invest the maturity benefits in an annuity plan to receive a consistent source of income till the end of your life, allowing you to enjoy a financially independent lifestyle.
- You can leave an inheritance for your family: This is only one of the many benefits of having a term insurance plan. With a suitable insurance plan in place, you can leave a substantial legacy for your children simply by naming them as policy nominees. This will allow them to receive death benefits from their life insurance policy without any problem.
- It may pay medical bills (with the help of the rider): When you read about what is term insurance, you will know almost all life insurance plans allow you to add riders. These riders supplement the coverage offered by the plan by giving additional benefits for a small additional fee. One such rider, the critical illness rider, helps cover medical expenses associated with any of the illnesses listed in the rider.
When you are first diagnosed with any of the specific illnesses covered by the critical illness rider, you will receive an immediate rider sum assured, which you can use to pay for your treatment. This is in addition to the death benefit provided by the basic life insurance plan. Given that healthcare costs seem to be increasing year after year, life insurance might assist in alleviating the financial load by covering a portion of the costs.
So what we are saying is,
When you start to read about what is term insurance and its benefits, you will realize there are numerous benefits to choosing life insurance after marriage. In addition to the benefits listed above, a life insurance policy can assist in keeping your spouse financially secure even if you are not present to support them.
