When you get married, you are joining your life to another person. Not only will you now face a legal connection, you’ll also combine your personal assets. Married couples frequently share property, belongings, income and other items. As a result, if you die, your end of the deal might suffer. How can you provide for your spouse after your death? A life insurance policy can help make up for resulting financial losses.
If you die, your spouse likely has a sizeable estate to manage. Realistically, one person’s income and assets might not prove beneficial. With life insurance, you can leave behind a cushion to support your spouse.
Why Spouses Need Life Insurance
When you get married, you and your spouse likely will use each other’s assets to support your joint life. For example, both of your paychecks might now go towards paying for a home or raising a family. In other words, you each rely on what the other person brings to the table.
But, if one of you were to die suddenly, that means your own income will go away. Nevertheless, costly assets will remain behind. If you die, your spouse might still have to manage a mortgage or car loan, not to mention everyday costs. On their single income, is that feasible? Very few established families can rely on one paycheck nowadays.
With life insurance, you can lessen the financial burden on a surviving spouse. By naming them the beneficiary on your policy, they can have access to the money in the settlement. This fund does not go through escrow. Your spouse will have automatic access to the full sum upon successfully filing a claim. That could prove very helpful as they work to re-establish themselves on their own.
Some of the ways your spouse might use your policy include:
- Settling your outstanding debts, like credit card payments, before closing the accounts.
- Paying for your funeral expenses or medical bills.
- Using the money to pay an existing mortgage or vehicle loan.
- Providing a supplementary income to replace your paycheck.
- Using the money to pay for a child’s education in the future.
In short, your policy can give your survivors money in place of the income you could have provided. Thus, you can likely see how crucial a policy becomes upon marriage.
So, talk to your insurance agent. They can help you determine how much money your beneficiary can receive, and when they will receive it. Make sure your spouse has a cushion to protect them in case you can no longer do so.