Jun 05 2017

Single, Married or Building a Family? Why Having Life Insurance Can Help Smooth The Path To Financial Security – Part 1: Life Insurance For Couples

At Bearingstar Insurance, we passionately believe that life insurance is extremely important to have – and worth the time investigating – no matter what chapter of your life you find yourself in today. However, we understand if you are a bit cynical about this type of insurance and you would not be the only one. In a 2017 Insurance Barometer Study by Lifehappens.org and LIMRA, 84% of U.S. adults surveyed said they believed that most people need life insurance. And yet, only 59% of these same adults surveyed said that they carried life insurance, themselves. Even though we aren’t accountants, that’s math that just doesn’t add up.

So why do people put off, and sometimes completely ignore, the importance of buying life insurance? At Bearingstar, we find that regardless of age or lifestyle, there are typically three main reasons why people just like you may have postponed buying life insurance:

  • There are other priorities. Life insurance has taken a back seat to saving for retirement, medical expenses, personal debts, and other basic costs of living including housing expenses.
  • It’s thought to be expensive. New clients often significantly overestimate the cost of a life insurance policy.
  • The buying process seems complicated and time-consuming. There is a perception that it takes a lot of effort to get life insurance.

The team at Bearingstar is eager to answer your questions and concerns about life insurance and hopefully dispel these common misconceptions. Through our next three blog posts, our goal is to illustrate that, no matter what stage of life you are in, getting a comprehensive Life Insurance policy today is:

  • One of the most important things you can do to ensure your future financial stability
  • Extremely affordable especially when you consider the value and peace of mind that it provides
  • A smooth, easy, and comfortable buying process if you work with knowledgeable and proactive insurance professionals

Part 1: LIFE INSURANCE FOR COUPLES

Whether you’ve recently tied the knot or have been in a committed relationship for a long time, finding that one special someone to share all your hopes and dreams truly is blissful, isn’t it? It’s also probably a bit of a relief to have someone to help shoulder responsibilities, especially financial ones.

Together, you and your spouse are undertaking a huge project – building a life together. And whether this plan includes children or not, the foundation that the two of you are laying may need the protection that life insurance can provide.

Below are Bearingstar’s top reasons for married/committed couples of any age to look into the life insurance plan that would be best for them:

  • You’ve merged finances and are now jointly paying for bigger financial obligations like a new home, another car, hobbies, and all the other things you love to do as a couple. Not to mention, you may be trying to put aside some savings for a future family member when you are ready. Right now, you can rely on both of your incomes to pay for your lifestyle, but should something happen unexpectedly to one of you, the financial obligations that you have built up together could be far more than one income can bear. Having a life insurance policy in place is a way to ensure that the surviving spouse receives income replacement and can continue to fulfill the plans you made and maintain your lifestyle.
  • Debts are a mutual responsibility. If you’re coupling is like the majority of relationships, one of you entered the marriage with a little – or a lot – more debt than the other. Whether you are a spendthrift or the pennywise partner, you’re now in this together, and any debts become an issue for both of you. While you’re working on paying down debts, you will also want to ensure that, should something happen to either one of you unexpectedly, you have adequate life insurance coverage in place so that the surviving spouse is not saddled with paying for remaining balances. With advice from an insurance professional at Bearingstar, you can choose the proper life insurance policy to cover funeral-related expenses and debts, and to provide allowances for your partner as well.
  • You want to invest wisely so that you can have spending money for right now and retirement money for the long-term. One simple way to save money today is to consider a Joint Life Insurance policy, which will cover both of you under one policy and is generally less expensive than buying a separate policy on each person.

One more reason not to delay getting life insurance as a couple is that the premiums will get more expensive with each passing birthday!

At Bearingstar, we understand that one partner may be eager to plan for emergencies or the unexpected, while the other may feel there is nothing to worry about. Our team is here to help facilitate the conversation and assist in making a mutual decision about the life insurance policy that is best for both of you.

Bearingstar is your local insurance partner with convenient offices across Massachusetts and Connecticut. We are here to provide you with advice and insight on the importance of having Life Insurance, not only for you as a couple but also as an individual moving through a variety of stages of life. Our team has much more information to share with you, so please contact us today for help finding the right life insurance policy for your needs.

Stay tuned for the next blog post in this series which will focus on why a life insurance policy is critical protection to have if you are a parent.

Life Insurance Policy Types That Couples May Want To Consider.

We Hope This Brief Explanation Will Make The Insurance Process Simpler For You!

  • Term Life This policy offers coverage for a set amount of time with a fixed price for payments made monthly, semi-annually, or annually. This policy type may be a good option for couples who need a large face value for a limited period of time or if you are younger and budget-conscious. Premiums start low, but may increase at each renewal. Term Life coverage is usually renewable until at least age 70, but some policies may be renewable up to age 95. At the end of the agreed upon term, you will usually have the opportunity to convert part or all of the policy to whole life insurance or to renew it for a shorter term, but at a higher price. There is also no cash value at the end of the agreed upon term. Finally, the death benefit is guaranteed and can be increased or decreased at any time.
  • Whole/Permanent LifeThis policy type has both an insurance and an investment component. The investment component of your premium builds an accumulated cash value that you, the insured, could borrow against or withdraw tax-free. You will pay the same premium from the day you make the purchase until the day the policy matures, or you are deceased. Couples may want to choose this policy type for many reasons. Perhaps you want to provide a continuing death benefit for your heirs while continuing to build cash value. Or, maybe you are not able to get any other type of policy due to health issues. Or, you could simply want to avoid the time health underwriting can take. Regardless of the reason you choose this policy type, your premiums remain level throughout the entire time you hold the policy and coverage is for life; most policies mature at either age 100 or 120. The death benefit is guaranteed but varies relative to the cash value of returns on your investment. There is a guaranteed cash value that fluctuates with the underlying investment performance as well.
  • Joint LifeThis policy type is designed to enable two people, typically spouses, to share in one life insurance plan. There are two types: first-to-die, which pays out to the surviving spouse after the first dies; and second-to-die, or survivorship, which pays a death benefit to the heirs after both spouses are gone. In either form, this type of policy may be right for couples looking for a way to lower the cost of life insurance or to make sure their estate is protected from taxes when they die. This policy can be purchased as either a term life or permanent life policy and your coverage, any cash value, and whether policy loans are allowed will be dependent on which policy option you choose. The death benefit is guaranteed.

One of these policy types could be the right life insurance option to meet your needs as a couple, but which one? The first step towards ensuring that you choose the optimal policy is to work with an insurance agent who will take time to understand your financial situation and explain all your life insurance options in easily understandable terms. For help finding the right life insurance policy for your unique life, please contact Bearingstar Insurance.

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