As a newlywed, there are a lot of changes you have to embrace like new sharing a closet, having a new roommate, your spouse’s habits and shared financial responsibilities. While some of these changes are pretty straightforward, others—like structuring a life insurance policy—are a bit more intricate.
You Have a few Policy Ownership Options - When you buy a life insurance policy, you do not have to be the owner and the insured. Instead, you can name your spouse as the owner or name a trust. It is important to remember that the owner of the policy can make any changes to the policy that they want; they can change your beneficiaries and reassign ownership with no say from the insured.
Should You Purchase Whole or Term Life Insurance - If you don’t already have insurance, or you need an additional coverage for a temporary period (such as during the term of your mortgage), then you need to decide whether you want whole or term insurance coverage. Whole (or permanent) life insurance is guaranteed to pay out your death benefit anytime your death occurs, as long as you make payments on time. Term insurance pays a death benefit only if death occurs during a certain set of years. Additionally, term insurance does not accrue cash values.
Naming a Beneficiary - A beneficiary change may be in order for some newlyweds who already have in-force life insurance policies. And those who don’t yet have policies need to decide whom to name as beneficiary once they do. Generally you want to avoid naming your estate as beneficiary since that move will force your life insurance death benefit to be put through probate and, as a result, your heirs will face delays in receiving the benefit. Instead, you can name an individual (such as your spouse) as your beneficiary, divide the death benefit between multiple beneficiaries, or name a revocable or irrevocable trust.
Do you Need a Spouse Rider or Separate Policies? – When you and your spouse buy insurance, you can each have your own policy or you can buy a policy to cover one of you and add a spouse rider to cover the other. This decision is important because while spouse riders might be less expensive than individual policies, they can also be restrictive in the death benefit amounts. Also, with a spouse rider, the rider’s benefit is only payable if the insured on the rider predeceases the insured on the base policy.
Life insurance is a necessary purchase for all newlyweds. How you decide to structure your policy will depend on your needs and unique situation. Be sure to evaluate all of your options to ensure you choose a policy structured to be both affordable and cost effective. Glory Insurance Group is there to help you decide which Las Vegas Life Insurance option is best for you and your family. Give us a call today at 702-616-0889 to get started setting up your plan.