Life Insurance for Newlyweds
Starting married life together is a wonderful thing, but with marriage also comes a world of new responsibilities, one of which is shared financial obligations. Life insurance is very important because you want your new family to be financially secure - especially when you are not around to take care of them.
Right now might be the best time to get term life insurance quotes because premiums are always at their lowest levels when you are young and healthy.
If you already have life insurance through your employer or independent insurer, you might still want to add to your insurance coverage.
Newlyweds can use some of these basic tips when choosing a life insurance policy:
Protection For Newlyweds
For those planning on having children it would be ideal to buy a policy that will keep you covered until they graduate from college. A 20 or 30-year guaranteed level-term policy is a good option if you want the longest protection. Moreover, the rate remains the same for those 20-30 years, even if your health changes.
Experts often suggest buying coverage of 10 times your annual net income, but the amount will vary depending on your age and number of dependents.
Don't rush for the lowest price. Before considering the financial strength of the insurance company and product's features, including the guarantee period, convertibility rights and available riders. A more expensive policy could get you better features, more flexibility and would be a company of superior financial strength.
Get company comparisons from an independent brokerage firm which deals specifically with "A" rated insurance companies and know every detail of their underwriting guidelines.
How The Rates Can Change?
It is important to review your policy as time passes, because your health is likely to decline as you age. Convertibility of policies allows you to exchange your term policy for a permanent insurance plan without having to qualify medically. Not all level-premium policies are guaranteed for level for the entire policy period, so buy a policy with a guaranteed premium.
Some companies offer 20-year level premiums but with only a five-year guarantee, so five years later rates are liable to change at the discretion of the insurance company.
If you consume tobacco your rates might be triple the price offered to non-tobacco users. But, you can find good deals, provided you find the right insurance company within this vast insurance market. Work with a company that knows the various rules and intricacies of insurance companies.
The key to getting the lowest premiums, also known as preferred plus or "Superman" rates, is to have good health, not smoke, and not lead a dangerous lifestyle.
How Much Insurance Do You Need?
Understand your income from savings, investments, Social Security benefits, and group life insurance and lump sum pension benefits payable to a survivor when calculating the amount of life insurance you need. Ask a professional to help you find a company, whose product and price will match your health and lifestyle.