Young couple contemplates life insurance protection

D.I.N.K.s need life insurance, too

Parents with financially dependent children may benefit from the protection of life insurance. The financial resources the death benefit provides can help make life easier for the surviving spouse and children after losing a loved one.

But life insurance isn’t just for parents of young children. What about couples with Dual Income and No Kids. They need life insurance, too. Whether you’re young newlyweds, a couple waiting to have children or simply a family of two, life insurance offers important benefits.

Your spouse’s well-being
Could your spouse continue to live your current lifestyle if you weren’t providing an income? Think about your mortgage or rent, loan payments, living expenses and retirement savings. Purchasing life insurance can help provide reassurance that your spouse won’t have to make dramatic lifestyle changes if something should happen to you.

Cover funeral expenses and debt
Funerals can be expensive. In fact, the National Funeral Directors Association reported the national median cost of a funeral is $6,000 to over $7,000. Are these expenses your spouse can afford? The death benefit of your policy could relieve the financial burden of paying for a funeral.

What about debt? Maybe you started your own business or have a car loan in your name. If your spouse cosigned any of your loans, they are responsible to pay off your debt. That includes your parents if they cosigned your student loans. Your life insurance policy can provide your loved ones with financial relief from any debt.

Low rate locked in forever
If you’re interested in term life insurance, purchasing a policy at a young age is cheaper because you’re less likely to experience health complications. This low rate won’t go up during the term of your policy. If you were to purchase the same term policy 20 years from now, chances are the price of your policy will go up significantly.

If you’re considering permanent insurance, you may want to consider buying now to qualify for the best underwriting class and the lowest rate. Underwriting for a permanent life insurance policy is better when you’re young and healthy, and your low rate is guaranteed for as long as you own your policy. If you know your family history isn’t too great, it may be in your best interest to buy a policy now before experiencing any health issues.

Planning ahead
If you’re wondering how much life insurance you need, a good rule of thumb is seven to 10 times your annual income. But if you plan to have children, you may need to plan for more as your expenses increase. Once you have an idea of how much life insurance you need, use this term life insurance calculator to determine how much term life insurance would cost. You can experiment will coverage amounts that fit your budget.

If you’re a newlywed, don’t forget to update your beneficiaries on any existing life insurance coverage you may have. For example, a policy given to you as a child or provided through work. Check to make sure your beneficiary designation is accurate and up to date.

Protect yourself and your spouse with life insurance.