A lot goes into planning a wedding. But in addition to the fairy-tale flowers, décor and dress is a much less glamourous task that many couples don’t consider: Life Insurance. Guest blogger Nelson Soh, CPA, explains why Life Insurance should be part of your “I Do” list.
Guest post by Nelson Soh, CPA.
A lot goes into planning a wedding. But in addition to the decor, dress and fairy-tale flowers, there’s a much less glamourous task that many couples don’t consider: Life Insurance.
What happens when your new life is based upon two incomes, and one of those incomes suddenly disappears?
If you’re planning a wedding, or have already walked down the aisle, then Life Insurance should be on your “I do” list. Life Insurance provides affordable and flexible financial security for the future you’re building. Should something unexpected happen to your partner, it ensures you can continue to live the life you dreamed of.
When Two (Finances) Become One
Marriage is much more than an emotional commitment.
Income, debt, and long-term goals become interconnected, as does the shared responsibility of protecting joined assets. In many cases, a couple’s standard of living becomes based upon a combined income.
Together, you may qualify for a larger mortgage, build savings more quickly, or pursue financial goals that would be more difficult or even unattainable individually. Couples often combine:
- Housing costs, such as rent or mortgage
- Utilities and household expenses
- Car payments, as well as insurance and maintenance expenses
- Personal debt
- Investment goals, such as saving up for children
Should the unexpected occur, increased expenses and debt simply aren’t manageable under one income. Life Insurance provides a lump-sum payout, tailored to your way of life, so that you can continue to make ends meet.
Financial Support When It’s Needed Most
Life Insurance is the most flexible and affordable way to protect your family’s financial future. A lump-sum payout goes directly to your designated beneficiary (or beneficiaries) and can immediately be put towards whatever they need most, such as:
- Paying down or eliminating a mortgage
- Covering outstanding debts
- Maintaining day-to-day living expenses
- Funding future goals, such as education or retirement
Financial hardship is the last thing a surviving spouse should face while grieving. With Life Insurance, you give loved ones the ability to keep their home, their lifestyle and their dreams.
Calculating Your Coverage
“How much life insurance do I need?” is a common question, and the answer depends upon your individual circumstances.
Some factors to consider include:
- Your combined income
- An outstanding mortgage balance
- Debts, loans and obligations
- Monthly living expenses
- Existing savings and investments
- Future financial goals
- Any current coverage amounts
Each household is unique, and there’s no universal number that works for everyone. A needs-based approach can help you estimate the amount of coverage that aligns with your financial responsibilities and long-term objectives.
The InsureCPA Needs Assessment Tool provides a quick and personalized way to easily estimate your Life Insurance coverage. In just a few minutes, you can determine the number that’s right for your family.
Aside from getting married, other milestones such as purchasing a home, having children or starting a business are also important times to purchase or update coverage.
Prepare for Life, Together
Life Insurance isn’t about expecting the worst—it’s about being financially responsible. It ensures the person you love is supported today, tomorrow and well into the future.
Although your wedding checklist likely includes countless to-do’s, make sure your financial security is at the top. Life Insurance is a simple yet powerful vow to protect each other for life.
