Being married is a new, exciting phase of life. It is a time when you are building hopes and dreams together. That is why, being prepared for unforeseen possibilities as a couple is the wise thing to do. Considering you have just tied the knot, a term insurance is the perfect option for you. By securing the future of your spouse with a term insurance policy, you’re helping them embrace a strong and fulfilled future.
Why term insurance?
The status from ‘me’ to ‘we’ brings on a lot more responsibilities. Apart from yourself, you also need to factor in the needs of your spouse. This includes your spouse having a strong financial backup, in case of a tragic loss. And nothing is better than a life insurance plan to help your spouse embrace a new normal after you.
But why should you as a newlywed couple choose term insurance? A term insurance plan is a lot cheaper than most other life insurance plans. Given that as a newly married couple, you would have a number of other financial obligations to fulfil, this plan will suit you the best. Buying a term plan means hitting two birds with one stone that is, securing the future of your loved ones while not burning a hole in your pocket.
Also, What are the benefits of term insurance for newlyweds?
Here are some term insurance benefits that a newlywed couple will enjoy:
Immediate and long-term needs
A term insurance pays a certain amount of the death cover as a lump sum amount or part monthly or yearly payments. It means that upon your death, your spouse gets a lump sum payment that will be needed to meet immediate expenses or monthly payments needed for regular expenses. In some cases, you may get both. Therefore, a term plan makes sure that your spouse is able to live a financially comfortable life in your absence.
More coverage, lower premiums
Term plans come with lower premiums. But, the death benefit your nominee receives is high in most cases. Unlike a other insurance plans, a term insurance plan gives you more coverage for relatively lower premiums, thus making it the perfect protection plan you need in order to secure the future of your new partner.
Converting to whole life insurance
Today, a number of term plans have the option of being converted to whole life insurance or endowment plans, with little or no costs. Therefore, getting a term plan as a young married couple is a good idea. Once you are closer to the end of the term, you may convert this policy into a whole life insurance or even an endowment plan. At times, this may be allowed once your term insurance plan has crossed five years. Post this conversion, you will be charged premiums as per your newly selected plan and tenure. However, converting your policy to whole life insurance should be done only if absolutely needed.