Thinking about insurance is probably the last thing you’ll be thinking about when you’re getting ready to say ‘I do’, however looking after one another is absolutely fundamental to what marriage is all about.
During those carefree days of being single, it’s likely that nobody was reliant on you for financial support. After you get married, this changes as most spouses rely on each other to contribute together as a household - to fund a lifestyle and any children you plan to (or already do) have.
As newlyweds, having life insurance in place is certainly something you should consider.
You both need to consider a policy that will keep the other financially afloat if one of you were to pass away. It’s an uncomfortable thought, but nobody knows what the future holds.
When it comes to buying life insurance, the younger you are, the less expensive it will generally be. This means there’s usually no better time than now to arrange life insurance cover, however it’s important to understand the range of options and products available to you and your partner.
A payout from a life insurance policy can be used to cover funeral costs, mortgage (or rent) and any other household bills and debts. It could also be used towards childcare and, eventually, school or university fees for any offspring. It may also be used to leave a legacy to the people who mean the most to you.
The good news is that the type of insurance you want, the amount you want to secure and the premiums you’re willing to pay are entirely up to you, and can be surprisingly affordable. This makes life insurance accessible to virtually everyone.
What Policy Is Right For My Partner & I?
If you’ve already been looking at different options, you may have noticed that you could get a separate ‘single’ life insurance policy as an individual, or as a joint policy with your partner. Some couples like this option as it’s easier to manage, usually cheaper than both having separate policies and it’s also often quicker to set up.
Single and Joint Life Insurance policies are similar, but with a few key differences:
‘Single’ Life Insurance covers just one person and if the policyholder were to die during the term of the policy, their loved ones would receive a payout. If you and your partner were to decide to take out two separate ‘single’ policies, then a payout could then be claimed for each policy if both policyholders die within the term.
‘Joint’ Life Insurance covers two people on a single policy and means there’s only one monthly premium to pay. Some people find this simpler to manage and you’ll only need to complete one application, but you would have to answer questions for both policyholders.
It’s also important to know the difference between the two types of life insurance policies you’re most likely to come across, being ‘term insurance’ (the more basic form of life insurance) and ‘whole-of-life’.
A ‘term’ life insurance policy is a popular choice for younger newlyweds because it’s affordable and most often long enough to cover the needs of children — such as the years until they flee the nest.
‘Term’ life insurance policies run for a fixed period of time (known as the ‘term’ of your policy) eg. 10, 15 or 25 years - but only pay out if you were to die during the term of the policy. There’s no lump sum payable at the end of the term.
A‘whole-of-life’ life insurance policyhowever may be a better option for couple’s tying the knot who are older.
As we all (unfortunately) die one day, a ‘whole-of-life’ policy pays out a lump sum whenever that day comes. Naturally, these policies are typically more expensive than term insurance policies since as long as you keep paying your premiums, the insurer will always have to pay out, whereas you may outlive a term insurance policy.
BUYER’S TIP: Whole-of-life insurance is also known as life assurance by many insurers.
One of the main benefits of whole-of-life insurance is that it can help your family deal with any bills associated with inheritance tax. Currently, if an estate is valued at more than £325,000, inheritance tax will be charged at 40% on the value of the estate above that threshold.
However, the tax will need to be paid before your loved ones are given access to your estate. This can put your family in a difficult position - they need to pay a tax bill which may run into (tens of) thousands of pounds, but they wouldn’t be able to use the money in your estate to do so.
As a result, many families are forced to take out loans just to cover this bill, which at an already upsetting time, may be particularly stressful.
A whole-of-life insurance policy could help avoid this issue. The payout would provide the funds required to clear the inheritance tax bill without your loved ones needing to take out a loan or go into their own savings to cover it. This though, is reliant on the policy being written in trust.
Whole-of-life cover may also appeal if you are determined to leave some form of inheritance to your loved ones.
Go Online For A Quote Today
Once you’ve both given this information some thought, it’s then really easy to arrange and compare online life insurance. Simply enter your details into our site and we’ll ask some questions to generate quotes so you’ll be able to see what policy works out best for you. You could even have cover arranged in as little as 30 mins.
Rather Give Us A Call?
If you’d prefer to speak with one of our friendly humans, they will be able to guide you through the process and support you in choosing the best cover for you and your partner.
Call for a quote today...
Our team of expert protection consultants are here to help. Call for a quick quote and more information now:
01392 241 850(Monday to Friday, 10am to 6.30pm)
