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If you’ve just tied the knot, congratulations! Now that you are a couple, it’s time to plan your future together.
It’s not the most romantic topic, but unfortunately, discussing your financial planning as a couple is crucial.
This includes planning for mortgages and addressing a topic most people overlook or find delicate: life insurance.
We know life insurance might not be the first thing on your mind when planning a wedding or settling into a newlywed life, but it’s an important consideration for ensuring your future together.
Why Is Life Insurance Important for Newlyweds?
Getting married means sharing your life, and that includes financial responsibilities. Life insurance ensures that if something happens to you, your spouse won’t face financial hardship on top of emotional distress.
It can help cover:
- Mortgage payments
- Outstanding debts
- Living expenses
- Future plans, like children’s education
- Funeral and burial expenses
Knowing that you have a safety net can provide immense peace of mind. Without the constant concern of “what if,” you can concentrate on creating your future together.
Why is After Getting Married an Excellent Time to Talk About Life Insurance?
Life Changes
Marriage often marks the beginning of significant life changes, such as buying a home or starting a family. With significant life changes, it’s crucial to be on the same page and discuss protection policies, such as life insurance.
It’s important to consider what will happen to your spouse if you’re no longer around, especially if you’re the breadwinner.
By having these discussions and implementing the right policies, you can protect your spouse and give both of you peace of mind, knowing that your future together is secure, no matter what happens.
Common Budgeting and Planning
This new phase requires a shift in thinking—planning together and setting mutual goals.
Shared financial strategies and decisions involve jointly managing income, expenses, savings and investments to achieve mutual financial goals. It includes creating a unified budget, setting financial priorities, planning for major expenses like a home or children, and ensuring both partners are aligned in managing money.
This is the ideal time to reassess your financial situation and make long-term plans. While you both have individual dreams, you also share dreams for your life as a couple.
You can ensure a secure and prosperous future by aligning your financial strategies.
Shared Financial Responsibilities
As newlyweds, you now have shared financial responsibilities, such as a mortgage, and it’s important to have life insurance to protect your future together.
Life insurance ensures that your partner won’t be burdened with the full financial responsibility if something unexpected happens.
Cheaper Life Insurance Premiums
Young couples are typically healthier, which means they can secure lower premium rates than those who purchase a policy later in life. That’s why it’s important to talk about life insurance now, as newlyweds.
By locking in a policy early, you can take advantage of these lower rates, ensuring comprehensive cover without straining your budget.
Discussing life insurance at the start of your marriage protects your financial future, allowing you to focus on building your life together with confidence and security.
You can request a life insurance quote and compare the premium prices of various providers to find the best deal for your needs.
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Types of Life Insurance
Term Life Insurance:
Term life insurance provides a lump sum payment to you and your family in the event of death. This type of life insurance applies to a specific fixed term; the policy will cease after the term has ended and no claim is made.
Whole of life Insurance:
Whole of Life insurance will insure you for your entire life, continuing up until the event of your death. In most cases, this type of life insurance will cost considerably more than other products as there is a guaranteed payout.
Convertible Life Insurance:
Convertible Term insurance is similar to Term insurance but has a different advantage.
The policyholder can convert the existing cover into a new, longer-term policy without requiring the insured person to provide further medical information at the time of conversion.
Read more about Convertible Life Insurance.
You can also change the policy to a “Whole of Life” policy, which guarantees you life insurance for the rest of your life.
Mortgage Protection:
If you pass away before paying off your mortgage in full, Mortgage Protection insurance will cover the remaining balance.
Read more in our post about the most frequently asked questions about mortgage protection and the myths surrounding it.
Life Insurance – Types of Cover
Single :
Getting a quote by yourself and taking out a single policy.
Joint :
This policy covers you and your partner and will pay out once. This policy can either be set up on a Joint Life First Death basis, i.e. the policy will pay out on the death of the first life assured, and cease. Or on a Joint Life Second Death basis, i.e. there will be no payment on the death of the first life assured, however, the policy will pay out on the death of the second life assured and then the policy will cease.
Dual :
Dual cover will pay out on the death of both the first and second lives assured. On the death of the first life assured, the benefits will be paid to the remaining life assured. On the death of the second life assured, the benefits will be paid to their estate. Once the policy has paid out on both the first and second lives assured, the policy will then cease.
Common Myths About Life Insurance
Several myths about life insurance can prevent newlyweds from obtaining the cover they need. One common misconception is that life insurance is too expensive. However, this is not always the case; premiums can be as low as €13.72 per month (as of May 2024).
To help you determine if life insurance is right for you, we’ve debunked five typical myths and misconceptions surrounding it.
Understanding the realities can highlight the benefits and affordability of life insurance, encouraging more informed decisions about securing this valuable financial protection.
Speak with one of our expert and award-winning Financial Advisors!
Benefits of Life Insurance for Newlyweds
As newlyweds, securing your financial future together is crucial. Life insurance is key in providing peace of mind and financial stability. Here are some of the benefits of life insurance for newlyweds:
Financial Security: It ensures your spouse is not burdened with debts, such as mortgages, in case of your untimely death.
Income Replacement: Provides a steady income stream to maintain your standard of living if the primary breadwinner passes away.
Future Planning: Helps fund future expenses like starting a family, education costs, and retirement plans.
Lower Premiums: Young couples typically secure lower premium rates due to better health, making life insurance more affordable.
Estate Planning: It aids in estate planning by ensuring your assets are distributed according to your wishes and minimising financial stress for your spouse.
What Happens If One of Us Outlives the Term Life Insurance Policy?
If you outlive your term life insurance policy, the cover ends, and no benefits are paid out.
You can choose to renew the policy, convert it to a Whole of Life policy, or purchase a new policy. Reviewing your needs as the end of the term approaches is essential to ensuring continuous cover.
Read our article to discover solutions and strategies for extending your life insurance policy or opting for lifelong cover.
Can We Adjust Our Life Insurance Cover Over Time?
Many life insurance policies offer flexibility, also known as Guaranteed Insurability. Policies with a guaranteed insurability option allow you to increase your cover when significant life events occur, such as the birth of a child or the purchase of a home, without providing additional medical evidence.
Additionally, you can add Indexation to your life insurance policy, which ensures your cover increases over time to compensate for inflation.
This feature helps maintain the value of your policy, providing adequate protection for your loved ones as the cost of living rises. By adjusting your cover to keep pace with inflation, you can ensure that your beneficiaries receive sufficient financial support when needed without the risk of your policy’s value diminishing over time.
By reading our article, you can learn more about how inflation can impact your life insurance payout.
Which Is The Best: Joint or Dual Life Insurance?
Joint life insurance covers two people under one policy, paying out once, usually upon the first death (however the policy can also be set up to pay out on the second death instead) and ending, making it more cost-effective and simpler to manage but leaving the surviving partner without cover.
Dual life insurance, on the other hand, provides two separate payouts for each insured individual, offering comprehensive and independent cover for both partners, but it comes with higher premiums and more complex management. Choosing between them depends on your budget and the level of flexibility and protection you need.
Talk to one of our financial advisors to determine which option best suits your unique situation.
What Type of Life Insurance is Best For Newlyweds? Term and Whole Life Insurance?
Term life insurance is usually more affordable and provides cover for a specific period. It’s ideal if you need cover for a certain time frame, such as until a mortgage is paid off.
While more expensive, whole life insurance offers lifelong cover and a savings component, making it suitable if you’re looking for a policy that builds cash value over time.
Are Life Insurance Payouts Tax-Free?
Life insurance payouts to a spouse are generally exempt from inheritance tax in Ireland. This means the full amount of the benefit is available to your spouse, providing financial security without the burden of additional taxes.
How Much Life Insurance Cover Do You Need as a Newlywed?
Determining the right amount of life insurance cover for newlyweds is essential to ensuring financial security for your future together.
Some factors to consider when calculating your life insurance needs include debts and liabilities like mortgages, future expenses such as children’s education and retirement savings, and living expenses like groceries, bills, healthcare, and funeral and burial costs.
Learn how to calculate the amount of life insurance cover by reading our article. We also show how to use the Life Insurance Calculator.
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How Much Does Life Insurance Cost for Newlyweds?
The cost of life insurance for newlyweds can vary widely based on several factors, including the type of policy, the amount of cover, and individual health and lifestyle factors.
You can request a life insurance quote by simply adding your personal details, and within 60 seconds, you’ll receive a quote comparing the prices of the top life insurance providers in Ireland.
If you wish to combine Serious Illness Cover with your life insurance, the best way to determine the cost is by speaking with us. We can help you understand your options and find the right policy for you and your budget.
Best Life Insurance Providers in Ireland
Choosing the right provider is just as crucial as selecting the right type of insurance. To ensure you find a policy that fits within your budget and meets your needs, you can request a quote from various insurers to compare prices.
However, the decision should not be based solely on cost. Each provider’s special features and benefits play a significant role in adding value to your policy.
In Ireland, some of the top life insurance companies are highly regarded for their reliability and the comprehensive benefits they provide. These companies offer a range of features designed to enhance security and peace of mind, making it essential to consider both the price and the value-added services when selecting your life insurance provider.
Aviva
When you choose Aviva for your Life Insurance, Serious Illness Cover, Mortgage Protection, or Income Protection, you can access an exclusive health and well-being service called Aviva Care.
This service is included free of charge with all new protection policies, offering a suite of valuable benefits designed to support your overall health and well-being.
Aviva Care provides policyholders with four great benefits at no additional cost: Digital GP, Best Doctors Second Medical Opinion, Family Care Mental Health Support, and Bereavement Support.
Each of these services is designed to offer convenient, compassionate, and comprehensive care, ensuring that you and your family have access to expert health advice and support whenever you need it most.
Royal London
Royal London goes beyond the typical insurance offering by providing access to a service called Helping Hand, which grants you access to dedicated medical professionals from the day your policy starts—not only when you make a claim.
This unique feature includes all nurses available to give you a second opinion on your diagnosis and future treatment options without additional cost. Helping Hand isn’t just for policyholders; your spouse and children can also use the service.
Should you ever experience a serious illness, injury, or bereavement, Helping Hand offers crucial support that extends beyond financial aid. To aid in recovery or coping, Royal London, through Helping Hand, may provide access to specialist therapies such as bereavement counsellors, speech and language therapists, face-to-face second medical opinions, complementary therapies, and physiotherapy for specific serious health conditions.
This comprehensive approach ensures that you and your family receive the support needed during challenging times.
Additionally, Royal London was a pioneer in enhancing the cover of Serious Illness policies by introducing a partial payment option for those undergoing treatment for specified severe mental illnesses.
We invite you to read our detailed article on this topic to learn more about how these policies provide support and the specific conditions covered.
Speak with one of our expert and award-winning Financial Advisors!
Zurich
Zurich enhances its insurance offerings with a feature to alleviate financial stress during difficult times. If you cannot work due to injury or illness, Zurich commits to paying your premiums after 26 weeks.
These payments will continue until you recover, the policy term ends, you reach your 60th birthday, or, in the event of your death, whichever comes first.
Zurich also offers a specialised type of cover known as Cancer-Only Cover. This type of serious illness cover is designed to protect you against certain types of cancer, as defined in your policy.
It’s an excellent alternative for those who may not qualify for traditional life insurance, serious illness, or income protection due to specific health concerns such as a history of stroke or other significant health issues.
Zurich’s Cancer Cover might be the most suitable option if you’ve previously been denied serious illness protection due to particular health conditions. It offers focused protection at a lower cost than broader serious illness policies.
Learn more about the cancer covered under Ireland’s serious illness insurance.
New Ireland
New Ireland provides a distinct advantage through its Whole of Life Benefit, which guarantees a lump sum payout of up to €50,000 upon death.
This benefit remains valid, even if death occurs after the main cover term has ended. For instance, if the term of your cover for other benefits concludes at age 65 but you pass away at age 90, this Whole of Life Benefit will still be honoured, as long as all premiums have been consistently paid on schedule.
This ensures that your beneficiaries are supported financially, regardless of when the insured event occurs, offering peace of mind beyond the typical constraints of term-based insurance policies.
Alternatives to Life Insurance For Newlyweds
Life insurance is a crucial element of financial planning for many, so it’s important to explore all available options. Here are some alternatives that might suit different needs:
Savings and Investments
Emergency Fund: Building a robust emergency fund can provide short-term financial security.
Investment Portfolios: Stocks, bonds, and mutual funds can offer long-term growth potential and financial stability.
Other Insurance Products
Serious Illness Cover: This policy offers protection by providing a lump sum if you are diagnosed with a specified serious illness. Click here to learn more.
Income Protection Insurance: Provides a regular income if you cannot work due to illness or injury. Click here to learn more.
Pension Plans
Contributions to a Pension: Besides providing for retirement, pensions can sometimes offer a death-in-service benefit, which provides a payout to dependents if you die while employed.
Read our Retirement Guide to learn everything about pensions and retirement planning.
Get a Life Insurance Quote For Newlyweds
Speak with one of our financial advisors, who can guide you, help you understand your options, and ensure you get the best possible policy for your situation.
Whether you’re looking for term life insurance, whole-of-life cover, a single, joint, or dual policy, or a specific plan tailored to your circumstances, LowQuotes provides the tools and information you need to make an informed decision.
We also provide a wide variety of financial services, such as mortgages, serious illness cover, pensions, financial planning, health insurance, and savings & investments.
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All our content has been written or overseen by a qualified financial advisor. However, you should always seek individual financial advice for your unique circumstances.
