Congratulations! You found someone in this crazy world and are in a committed relationship with them, but now there are many next steps. Aside from universally deciding on which way the living room should be set up, you should also think about what life insurance for young couples policy is right for you.

As a single person, it might not have been something you thought about. However, now that you’re seeing someone else, if anything should happen to you or them ensuring that each of you is financially protected can be invaluable.

Life Insurance for Young Couples: What to Consider

Obviously, you’re young and have your whole life ahead of you. However, you also have someone in your life now who depends on you and, subsequently, you depend on them. Every financial decision you make now affects both of you in some way (like a new car, or new home).

One of those decisions that can help both of you is getting life insurance. If you get life insurance through group benefits work that’s great, but the coverage it provides is likely not enough to cover your new lifestyle together. You’ll also want to change your beneficiaries to include your partner when you sign up since anything you’ve set up previously may not have included them.

Keep in mind that since you’re both young, your premiums will be significantly lower. It’s highly likely you’re not going to break the bank by adding it to your monthly expenditures. As to what type to get…

Getting Term Life Insurance as a Young Couple

Term life insurance is often the most popular choice for young couples. It’s also one of the simplest to set up. All you need to do is select a period of time (often 10-20 years) that your significant other will receive a payout from if you pass away during that period. Because you get to pick the length of your term, there’s a large degree of flexibility that benefits many couples.

Understand, however, that premiums will generally increase at the time of renewal. On the flip side though, if you’re still in good health during your time of renewal, there might only be a minimal increase. To prove you’re healthy, you’ll just need to do a simple medical exam.

Whole Life Insurance for Young Adults

Whole life insurance is less common for young couples, but it especially benefits those with a higher net-worth. Because a whole life insurance policy covers you for, well, your whole life, premiums are less affordable than term life insurance policies.

That being said, your premiums won’t fluctuate as much as term life insurance. Plus, you’re guaranteed a payout no matter when you pass away.

There’s also a tax-saving investment component, but it’s really only worthwhile if you’re already maxing out your TFSA and RSSP contributions. Since most young couples aren’t doing that, it’s often not the right fit for choosing life insurance.

Benefits of Getting Life Insurance at a Young Age

Being in a good, committed relationship is an important milestone to achieve. Now that you have someone else in your life though, the financial element of your relationship isn’t something to overlook.

This is especially true if you plan on having kids. By getting life insurance at a young age when it’s the most affordable, you ensure you can financially protect your children’s, and spouses, futures with minimal financial investment on your part.

Overall, life insurance for young couples can be a great investment. It can give both of you valuable peace of mind knowing each other will be financially secure no matter if they are there or not.

Get the life insurance policy perfect for your needs by contacting us today!