Created: 8 February 2021
As the honeymoon comes to an end, it’s time for the newly-married couple to take stock of this new phase of their lives and start discussing life insurance policies to ensure they are well protected and able to live a comfortable life for years to come.
As newlyweds, it is an exciting time to discover your lives together as a couple − sharing both your dreams and concerns, as you work to build a better future. There will be plenty that both of you would have plans for, such as buying a house, starting a family, educating your children and even planning for retirement.
In good times, and bad
Although your plans will mostly revolve around positive developments, do bear in mind too, that life can spring some undesirable surprises such as illnesses and even loss of life. While many prefer not to think about such unpleasant life experiences, planning for such events is crucial to help you cope with these uncertainties.
If you are wondering how one plans for such unthinkable future, this is where insurance comes into the picture. Insurance, particularly life insurance, is often referred to as a safety net, as it protects a family when something untoward happens to a family member. In simple terms, paying for an insurance policy is simply paying a nominal fee – either on a monthly or yearly basis to an insurance company − to stay financially protected. The insurer will then compensate should the person insured become disabled or passes on.
For a couple with only one working spouse, having life insurance is crucial as the loss of the breadwinner can leave the surviving partner in a quandary. Without a life insurance policy, the remaining spouse may not have the financial means to carry on with the life that he/she is accustomed to, let alone deal with anxiety, depression or even mental health issues arising from being unable to cope with that loss.
While young people with good health generally do not view insurance as a pressing necessity; purchasing life insurance is without doubt one of the crucial investments, of a sound financial planning. So, as newlyweds, buying insurance should be a priority for both.
If you’re wondering when the both of you should purchase life insurance, the advice is to purchase a policy as soon as possible. Insurance companies always evaluate your risk of insuring based on your age and health, among other factors. As such, younger and healthier people get more favourable insurance premiums. As you age, insurance premiums become costlier, and the estimate is at an average of 4.5% to 9% yearly .
While everyone strives to lead a healthy life, the stressors of modern life can take a toll on most of us. Although we hope for the best, at some point in time, you may see yourself getting hospitalised, sometimes even for a small health setback. Be it a minor sinus surgery or an appendectomy, just about anything can happen to anyone, requiring hospitalisation. Even worse you could be diagnosed with a critical illness requiring prolonged stay for treatment in hospital. Such hospital stays can incur high medical bills and having a medical card will come in handy to settle your hospital bills. There are a few options available in getting a medical card, depending on the type of coverage you seek.
Health insurance for your family
Some medical insurance plans also provide family coverage option, enabling the spouse and children to be covered under one policy. Some plans are so flexible that automatic coverage is even given for children born after the policy purchase.
For health insurance that covers critical illnesses, you may also choose the types of coverage it provides. Some critical illness insurance plans cover common illnesses, and then there are some tailored to cover an extensive list of illnesses and could also be gender-centric. As such the female spouse may like to opt for medical insurance that targets female-related illnesses while the male spouse may opt for male-related illnesses.
As you grow your family and have children, purchasing life insurance for children is another investment that will help you to prepare for their future. Some life insurance can double as educational policies, so do choose what you want the policy to do for your children.
As the years go by, you can review your policy or even update your coverage according to your needs. Most insurance companies will offer updated plans to give you added coverage. Do plan your finances early on as newlyweds to pay for this extra coverage later in life.
Understanding the types of coverages
It is a common misconception to think that if you are insured at work, then you do not need any extra coverage. Working couples who may have some group life insurance coverage provided by employers, must understand that sudden loss of job can result in loss of that insurance coverage.
Purchasing life insurance is akin to having a good savings plan. There are many types of life insurance offered by various insurance companies. The two common life insurance plans are term life and whole life.
Term life is a life insurance coverage for a stipulated number of years at the lowest outlay. It is also considered affordable with its competitive premium rates and provides coverage for death as well as total and permanent disability.
On the other hand, whole life insurance is exactly what its name suggests. This is a life insurance that you pay until the end of your life. These days, the lifelong protection coverage is up to 100 years of age. The premium payable will stay the same throughout the lifetime of the insured and in the event of death or total permanent disability, the face amount is usually paid up in one lump sum.
A long-term commitment
Keeping a life insurance policy is a long-term financial commitment, so remember to choose a policy that best suits the both of you and seek for professional advice before committing into one.
Newly married couples should plan wisely when it comes to purchasing life insurance plans for all the major milestones in your lives. Both husband and wife should discuss each other’s protection plans and keep the policies active so that in time of need, they can be rest assured that their family is well-protected to continue with their lives.
Remember, insurance is an investment that not only ensures your wellbeing but also gives you peace of mind to tackle what the future brings to your table.