Life Insurance and Marriage: What You Need to Know

iQuanti: Traditional marriage vows include a promise to love each other for richer or poorer. And one of the best ways to make good on that vow is to set your significant other up for financial success in the event that you can no longer provide. Here's what you need to know about life insurance and marriage to ensure a financially sound union. 

Do I Need Life Insurance? 

Life insurance is a contract between you and a life insurance company for which you pay a monthly or yearly premium. In exchange, you'll receive a guarantee that the company will pay out a set amount of money to your beneficiaries if you die while the policy is in effect. We know, that's kind of dark. But life insurance is a tool that can provide security and peace of mind in your marriage. 

Life insurance is a way to support your spouse by helping to pay bills or effectively manage debt when you're gone. The last thing anyone wants is for their spouse to be buried in grief and financial stress too. 

Updates to Life Insurance Policies After Marriage 

If you have an existing life insurance policy before you get married, you'll want to make changes as needed to: 

• Beneficiaries: You may want to make your new spouse a beneficiary to the policy and account for any step-children as needed. 
• Coverage amount: If you chose a life insurance policy that was designed to only cover your burial costs in your single years, it may no longer be enough coverage. If you and your spouse both depend on your income, this might be a good time to revisit your policy. Consider the needs of future children, as well as any new debts you may take on such as a new mortgage. 

It's also worth noting that the premium for life insurance tends to increase with age. So the best time to lock in a policy with level rates is while you and your spouse are young and healthy. 

The Bottom Line 

After marriage, providing for a spouse and family is often the top priority. And the best way to continue to provide for your family is to be sure your life insurance policy is in force and up to date. That way, you can rest easy knowing your partner will be cared for financially if you pass away or can no longer provide the income you previously had.