Marriage is the perfect time to start shopping for life insurance. Why? Because it’s when you start sharing your life – and your debt – with the one you love.Here’s why life insurance for married couples should go hand in hand with saying, “I do.”
A shared life means shared responsibilities
While it’s quite unromantic to think about all the legal and financial changes that come with signing a marriage license, I firmly believe in talking about it.
The reality is that marriage comes with a joint responsibility of sharing life together, which includes debt.
Even if you have no outstanding debt at the time of your wedding, you will undoubtedly be sharing some financial obligations with your spouse down the road, whether that’s a car, a house, graduate school or credit card debt.
With this financial future ahead of you, now’s the time for you and your spouse to review your insurance coverage. Having the right type and right amount of insurance will help ensure that your finances are protected from any accidents or lawsuits down the road.
You can lock in a good rate now
In general, life insurance premiums increase with age, so the earlier you lock in a rate, the more affordable it can be.
Some plans even let you cancel later, so it’s possible to get out of a policy if at some point you decide you don’t want it anymore. The one thing you can’t do is go back in time and purchase a new policy 10 years down the road at the lower rate that you’d be able to get at this age.
If you’re starting married life with fewer financial burdens – e.g. no house, no kids – taking on a small monthly premium won’t be a significant burden on your bank account now, but it will set you up with more affordable premiums for the future when you may face more financial stress.
Purchasing life insurance when you’re healthy also makes a lot of sense as it guarantees you’ll be covered no matter what happens to your health in the future.
When it’s not always happily ever after
When you’re preparing for your wedding day, it’s natural to think your love will last forever. Unfortunately, divorce becomes a reality for some couples, and not all of them are prepared for the financial fallout.
A report from the BMO Wealth Institute found that 70% of surveyed Canadians are financially unprepared when going through a divorce. What’s more, divorce can impact women particularly hard: 43% experienced a substantial decrease in household income after their marriage ended.
We hope you never have to go through a divorce. If you do, however, it’s critical to examine your current life insurance policies and any spousal coverage benefits to which you may be entitled. Your beneficiaries – the people you’re leaving money to – should also be re-examined.
Building a shared future together
Marriage is about building a life together with someone you love. And while it may not sound romantic, that includes a financial life.
Chances are you will need to buy life insurance at some point as part of your shared future – particularly if you plan to have kids one day. So, as you start building your new married life together, keep in mind that this might also be a good time to apply for life insurance so you can take full advantage of your youthfulness and good health.
Elke Rubach, Rubach Wealth
Rubach Wealth is a Toronto-based wealth management firm. Founded in 2012 by Elke Rubach. They provide comprehensive financial planning, including asset management and insurance strategies for established professionals and business owners. They apply a multidisciplinary, holistic approach to all aspects of their client’s financial lives. To learn more about ELke and how she can help you click https://www.thedivorceangels.com/vendor/elke-rubach/