Should you buy life insurance after getting married?

 

Life insurance is an important aspect of your financial planning. It secures not just your financial future but also your loved ones and dependents. If you are the main breadwinner of your family, having a life insurance policy will help you avoid a lot of stress. Life insurance is particularly important at certain life stages such as marriage.

Marriage is a commitment and a responsibility and getting life insurance is a key step to ensure that your partner is covered. This ensures that both you and your partner can live peacefully and go about your daily life finding security in the knowledge that in spite of life's uncertainties, there is no financial burden to bear.

Starting early matters

It is important that you buy life insurance early. The reason is that the earlier you buy, the more affordable insurance is. Life insurance premiums go up as one ages, and you can save a substantial amount on your premiums by buying a policy early on. When you are young, you are fit and healthy, without any preexisting health conditions. This is what brings your premium amounts down. Also, when you are newly married and relatively young, your financial commitments are lower. You are yet to start a family and there aren't as many expenses to take care of. If you were to get yourself insurance once you have children, the expenses of child care added to your premiums may turn out to be heavy on your wallet. Thus, it helps to buy insurance early on, preferably when you have just tied the knot.

Once you are married, your financial commitments can only grow as a family. There are different life events and goals such as buying a home, having children and their education or weddings. You would need a protective ring around you and your family as you step into a new milestone in your life. You can get yourself a term life insurance policy that offers life stage protection. As part of this feature, you can increase the sum assured without having to buy a fresh policy.

Consider riders

Term life insurance comes with riders such as accidental death benefit and income option, which ensure that your significant other receives a portion of the benefit as a lump sum and the remaining as monthly income. You could also opt for a critical illness rider which offers benefits equal to sum insured upon diagnosis of a specified critical ailment. This can take the burden off your spouse, financially.

When you consider term insurance for your spouse, you would need to ensure that he/she is covered for the major part of your work life and also your retired life. The rule of thumb for the coverage is ten times your annual expenses at the minimum.

Both the partners can get themselves life insurance cover or one partner can cover the spouse in a joint life insurance policy. This choice depends on each partner's financial situation, income and needs. A joint term life insurance policy costs you relatively less than buying separate policies. In a single life insurance policy, the nominee or beneficiary is mentioned whereas in a joint life insurance, both partners are owners of the policy and therefore beneficiaries. Also, a joint term life insurance is ideal in a situation where both partners are earning. Added advantages are that a combined/joint life insurance policy offers wider coverage compared to a separate policy for each partner and ensures minimal documentation.

Summing up

Marriage is an important life event and marks the beginning of a new way of life for both partners entering into it. It means shared responsibilities, goals and commitments and planning for them financially as well. Getting a life insurance policy early on, and with the right riders if need be, will ensure that your marriage is on solid footing. So, assess your financial goals, your income and commitments and get yourself a policy that suits your needs from HDFC Life to plan a great life ahead.

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ARN: ED/08/20/20196