Merging your life means sharing responsibility with and for someone else. Both spouses may work, building a lifestyle that depends on two incomes. There is likely to be loans and other debts to pay off. At this stage of life, it is important to protect what you have. Life insurance is a traditional way of ensuring that the surviving spouse is taken care of in the event of a tragedy.
The primary purpose of life insurance is to provide a spouse, children, or other beneficiary with the resources they need in the event of the death of the other spouse. There are two basic types of life insurance:
Term insurance provides a simple death benefit for a fixed period of time. The premium may stay the same for many years. However, when the stated term expires, the premium can go up.
Cash value insurance provides permanent protection as long as you pay the premium. The premium does not increase over time. The younger a person is when buying the policy, the lower the premium will be for the life of the policy.
Couples should revisit life insurance coverage after marriage and again when expanding their family. It is important to consider future income potential, the cost of raising children, and outstanding mortgage payments.