Just Married? Here’s Why Life Insurance Should Be Your Next Step

The lives of newlyweds are full of excitement about a bright future with a partner. While discussing financial planning for couples may seem grim at such a joyful time, it’s a pivotal step towards a secure future. Many young couples believe they’re too young for life insurance or that it’s just another hefty expense. But here’s the truth: life is full of unexpected twists and turns, and it’s best to be prepared. 

Let’s take this scenario: Meet Arjun and Meera, a young, hard-working, high-earning couple. Two years after marriage, they purchased a flat costing ₹1.20 Crore on loan. Considering both of them were earning well, they could easily pay ₹90,000 EMI. However, in an unfortunate accident on their 3rd anniversary evening, Meera lost her life. This was disheartening and financially draining as Arjun had to sell the flat immediately. Arjun could have paid for the flat with the insurance claim amount if the couple had planned for the unforeseen with life insurance.

Learning from Arjun and Meera’s situation, let’s dive in to understand why you and your partner need to consider term insurance benefits today. 

Why Do Young Couples Need Life Insurance?

1. Financial security for your spouse

As newlyweds, you’ve just started a life together and are planning big things for your family. However, life can throw curveballs, and term plans for newly married couples step in in those situations. 

In unfortunate situations where a partner passes away, dealing with financial stress is the last thing you need on top of emotional grief. Joint life insurance policies help with financial obligations like debt repayments and mortgage payments and replace lost income to help you maintain the lifestyle built with your partner. 

2. Planning for your children’s future

Do you plan to send your kids to the best college in the country, start a business, or retire in comfort? Life insurance policies like term plans (after being claimed by the insured ), endowment plans or ULIPs can help you with this, as payouts can help you fund your dreams even if you are not there for them.

3. Riders and flexibility to match your financial planning

There is always a benefit to starting early. You get benefits on premiums, have options to close insurance premium payments early, and have riders that ensure maximum protection without the burden of premiums. For example, riders like waiver of premiums, limited payment options, and smart exit benefits make it easy to manage and continue your policy.

4. Create an inheritance for your next generation  

Lastly, when it comes to estate planning for couples, life insurance policies are a staple tool. Life insurance leaves your loved ones with resources to depend on. They offer much-needed financial support to your family when you’re not around and help leave an inheritance for your heirs. 

5. Peace of mind 

Knowing that your family’s future is taken care of and that you’re prepared for all types of emergencies is a relief. When you start your life as a couple, a life insurance policy can protect your lifestyle and ensure your partner will be financially secure in your absence. 

Financial planning is a non-negotiable part of life. When life insurance and investments are used wisely, it can give you peace of mind knowing your loved ones will be cared for after you’re gone. 

Life Insurance Policies For Newly Married People

There are many options when it comes to finding the right policy for you as a newly married. Let’s look at some features, benefits and disadvantages of the key types of life insurance policies. 

1. Term life insurance plans 

The term insurance meaning is relatively straightforward- a policy insures a person for a specific period. Payouts are made if the insured partner passes away. This is a good option for young couples as it helps replace lost income, and the premium is affordable. However, you do not receive any benefits in term insurance if the insured person outlives the policy tenure. 

2. Guaranteed-returns life insurance plans

A guaranteed life insurance plan provides guaranteed payouts at regular predetermined intervals. This means you will enjoy the dual benefits of investment and insurance as you receive an income regularly while also having your life insured. This provides a steady flow of liquidity while protecting the principal amount. As a couple, this is an excellent solution if you have a long-term goal. 

3. Whole life insurance plans

Whole life insurance provides coverage for your entire lifetime. This insurance comes with tax benefits and fixed life insurance premiums. The premiums of this type of insurance are generally high. 

4. Joint vs Separate plans

As a couple, you can get a joint or separate insurance plan. A joint plan covers both of you and pays out in case even one of the policyholders loses their life, while separate insurance plans insure each person individually. 

Key Takeaways

Choosing an insurance policy that meets all your requirements may be challenging. However, consider factors such as life insurance premiums, terms of the insurance, and payout frequencies to ensure your spouse and family members lead life without financial burden when you are not there for them.

Consider platforms like PhonePe for a seamless and hassle-free insurance purchase experience.