Two Things Every Young Couple Should Know About Life Insurance

Whether you've just recently said your vows or you've got a baby on the way, now is the time to start thinking about how to financially protect your family. Unfortunately, many young couples dismiss the importance of this process. Before you make a decision about whether or not to buy life insurance, here are a few things that you should consider.

You Don't Have To Be The Primary Earner

Some people dismiss the idea of life insurance because they aren't the primary income earner. While it is certainly important for the primary income earner to carry life insurance, it's equally important for other members of the household to carry coverage as well. Remember that, if something should happen, your family isn't just doing without an income, they would also lose the role you serve in the home and have to compensate for that. Whether that means hiring a nanny, tutors, or other childcare, it could prove costly.

You Can't Renew A Term Life Insurance Policy

Term life coverage is a popular option for many because it is affordable. However, it's only valid for the term of the policy. That means that if you buy a 10-year term life policy, you'll only have coverage for those ten years. The premiums you paid in are lost at the end of the term.

Remember that your family's financial needs aren't going to go away. They may change over time, but they won't disappear. For that reason, you need to consider your policy choice carefully. Either invest in a term policy that you can convert to whole life or opt for a whole life policy right from the start so that you don't have to worry about changes in your health or lifestyle affecting your future premiums.

Permanent life insurance such as whole life policies offer you more than just a death benefit. Most of these policies also provide you with a cash value accumulation. That cash value is typically tax-deferred and can be borrowed against. Just remember that you'll have to repay it or you'll be reducing the future death benefit.

If you're still certain you want a term policy, consider just adding a smaller whole life policy in addition. Then, you can increase your death benefit on the permanent policy later.

When it comes to investing in life insurance, it's important that you understand the truth. Make sure you know what to expect from the process before you buy. Talk with a local life insurance specialist today for more information.