Many significant milestones in your life can impact your financial planning. One such milestone is a marriage, where you embark on a new journey with another individual, changing your financial needs. One goal of a married couple is to secure their future together for financial security, and one way to do so is through term life insurance.
A term life insurance is a life insurance policy that protects your spouse during unforeseen circumstances with a safety blanket to ensure they are taken care of in your absence. You can easily purchase a term plan online using a term insurance premium calculator to make the correct choice per your requirements.
In this blog, we will discuss the importance of a term life plan for newlyweds.
About Term Insurance for Newlyweds
Today, men and women invest in term life insurance policies to provide their significant other with the right financial protection. Among the multiple-term plans available for couples today, you can choose between an individual or joint-term insurance policy.
Choosing the best term insurance plan as a couple is necessary to provide your significant other with the same financial protection. Whether you choose an individual term plan or a couple term plan, the end goal is to assess your requirements and goals before making the final decision.
Differences Between Individual and Joint Term Plan
In an individual term insurance plan, only one of the partners is protected and is eligible to receive the death benefit in case of the policyholder’s death. However, in a joint-term insurance plan, both spouses are covered by an individual policy. In this case, the death of any spouse during the tenure will result in the other getting the death benefits.
In a term plan, the beneficiaries can be changed as per requirement, but the primary nominee is the spouse. In a joint-term plan, you can appoint other nominees like parents or children in case of the couple’s death together.
|individual Term Plan
|Joint Term Plan
|Two individual payouts
|One payout in case of death of a couple passing away
|More extensive documentation two times
|individual documentation for both spouses
Benefits of Term Plan for Newlyweds
- Affordable- Purchasing a term life insurance plan for individual spouses can be more expensive than a joint-term plan. With the joint-term plan, you receive cover for the couple at better prices, especially if the individual premium paid for an individual term plan is considered.
However, given the requirement, you can choose between either based on preference to meet your financial objectives in the future.
- Cover Flexibility- You and your spouse are protected under a joint-term plan with the same process and documentation requirements. This saves money and a lot of time and makes it easier to track all your financial assets properly.
However, you can choose to invest in individual term plans if needed and customise the cover tenure required as per individual needs.
- Income Replacement- An individual term plan can help the non-working spouse with financial protection if the policyholder passes away by replacing the income source with the death benefits lump sum amount. This helps the surviving spouse continue to manage their expenses.
As a newlywed couple, safeguarding your future using a term plan is a good investment option. You can choose between an individual or a joint-term plan based on your requirements and personal goals. Both have their own set of advantages and can greatly benefit both spouses.
If you choose a joint-term plan, you save money and time. If you choose an individual term plan, you can provide direct financial protection to your spouse. Make the right decision based on your needs and enjoy a better tomorrow together.