You may think that you don’t need life insurance, especially if you’re not planning to have children or don’t have any yet. But there are other factors to consider. You could provide your spouse or partner with a financial resource that could help cover their cost of living should you pass away. If you have children, a life insurance policy can help maintain their standard of living.
The best time to get life insurance depends on each couple's circumstances. However, your age may make getting life insurance earlier an attractive option. Buying life insurance can be less expensive when you’re younger.
Getting older increases the risk of passing away — and premiums are higher to account for this. A life insurance policy can help provide financial security to your partner. Waiting to get life insurance could mean your loved ones may not be financially protected should you pass away
– This type of insurance offers coverage for a specified length of time.
Married couples and newlyweds may want to choose a 20-year term because they have a good idea of what the next 20 years will look like. They may have young children, or a new mortgage. Premiums are guaranteed and do not change for each 20-year period. The plan automatically renews at the end of each term and expires when you turn 80. When the plan renews, the premiums increase based on your age at the time.
– This type of coverage lasts for your lifetime.
Married couples and newlyweds choose Term-100 because they want lifetime coverage at a fixed cost. Plus, there's nothing to renew as the plan does not expire and the premiums are guaranteed not to change. Once each person reaches the age of 100, premiums stop but coverage continues the insured person passes away.
- Debt – Any debt you may currently have, including credit cards, car loans, student loans and lines of credit. If you plan on taking on debt in the near future, it could be a good idea to include this as well.
- Income Replacement – Think about your current household income. How long would your loved ones need financial support if you were to pass away, and your surviving spouse couldn't rely on your income? If you have young children, they may require extended support.
- Future needs and plans – Try to factor in your family's future needs. Would your children need money for their education? Think about what your partner may require, a few years down the road.
- Mortgage – If you have a mortgage, think about how much you still owe and factor in that cost.
- Existing Life Insurance – This should be a part of your calculations and will reduce the amount of additional life insurance you need.