In cases where the married couples are the income providers of the household, getting a life insurance policy will be requisite, especially if the income they both bring to the table is far from equilibrium. Because if the couple that provides about seventy percent of the household income passes away due to ad hoc circumstances, the other couple will be susceptible to various financial catastrophes—especially if they have children. That is why it is always advisable to give the thought of purchasing life insurance a chance.
The premature demise of one of the couples may expose the surviving couple to financial difficulties that will make the surviving couple incapable of supporting the family and catering to the children’s needs. This is further worsened by the existence of other expenses, such as house payments, car payments and unpaid debts.
It is already worse and depressing enough to mourn the loss of a loved one; I bet you do not want to imagine how deteriorated this may transform to if financial difficulties sneak in. That is why it is most times essential to consider the worst for the good of your loved ones and family by purchasing coverage for life insurance as early as possible.
When you have considered the worse for the betterment of your loved ones and family by placing yourself in the shoe of a pessimist, you will have to determine how much life insurance coverage you will need to offer sufficient financial protection to your loved ones when you pass.
You will be required to pay premium charges monthly and annually on a regular basis, which is the primary factor that will guarantee your beneficiaries of obtaining a lump sum of money called death benefits. The lump-sum your beneficiaries (a specific individual or group of people) will receive may depend on the coverage you purchase, which ranges from two hundred thousand dollars to four million dollars and above.
Therefore, you will need to consider several factors before deciding on the amount of life insurance coverage you will need. These factors include:
– The primary objective of your life insurance policy
– Do you have children?
– Do you and your spouse have any unpaid debts
– Would you be able to survive with your spouse’s income financially should they pass away?
The primary objective of your life insurance policy
One of the most significant factors you will need to consider to determine how much life insurance you will need is your personal objective of your life insurance policy. If your focus is directed towards your children’s needs, such as education costs, should you and your spouse pass away, a joint life insurance policy will be appropriate. There are, however, several types of insurance policies if your goal is to protect your spouse financially.
Do you have children?
If you have children, it is only natural that you will be concerned about their needs, which is the primary function of being a parent. One of the achievements parents are known to flaunt frequently is their children’s education, especially if they are in college. Hence, parents do work hard to put their children through college, but if they happen to pass away before the children are ready for college, the surviving spouse will experience difficulties in financing their education. To avoid this, you will need a large life insurance coverage to financially support your children through college if you are not around to support them directly should you pass away.
Do you and your spouse have any unpaid debts?
The common source of debt is usually a mortgage or auto loans and several other debts you or your spouse incurred before you got married. These debts could seriously tamper with one’s financial health. You will need to purchase life insurance coverage that will completely pay for these unpaid debts and relieve your spouse from any form of debt should you pass away.
Would you be able to financially survive with to survive with your spouse’s income financially is always advisable to know about incomes you both provide in your household because if you can not survive alone on your spouse’s income, you will need to purchase life insurance coverage that will offer the surviving spouse financial protection that will be sufficient for them.
When you and your spouse have arrived at the most preferred coverage that will provide the beneficiaries with enough financial protection after considering the factors listed above, you will need to decide as a couple between the two types of insurance apt for your requirement; joint or separate life insurance.
Joint life insurance
Joint life insurance is permanent life insurance that covers multiple people as long as they equally pay their premium charge regularly. There are some kinds of joint insurance that come with cash value. You will be able to have access during financial difficulties if the cash value has accumulated enough payments from your premium. However, you may require policy riders to enhance these features, enabling you to tap from the death benefits should you be diagnosed with a terminal illness.
There are two types of joint insurance you can choose from
First to die joint insurance
This type of joint insurance policy provides death benefits to the surviving spouse after the death of their spouse. However, after receiving the death benefits, the surviving spouse does not have any death benefits. Viz. They will no longer be covered by the insurance policy unless they purchase a new life insurance coverage.
Second to die joint insurance
In this type of joint insurance, none of the married couples covered by this policy will receive a death benefit, which makes it different from the first to die joint insurance policy. The death benefits are, however, provided to the beneficiaries of their choosing after they both pass away.
Separate life insurance
Separate life insurance primarily involves the purchase of a life insurance policy by you and your spouse singly. Married couples usually purchase different life insurance policies primarily because they are not clairvoyant enough to tell who will give up the ghost prior to the other.
The best type of life insurance coverage for your need
You will need to have a discussion with your spouse about your financial needs and objectives of your life insurance policy in order to have an idea of the best type of life insurance coverage you will need to protect your beneficiaries financially.