Protect the Love of Your Life With Life Insurance for Newlyweds
Picture this: A romantic proposal. A sparkling ring. A big teary-eyed YES! Your happily ever after is about to come true… so why not be each other's knight in shining armour with life insurance for newlyweds?
What’s life insurance for newlyweds?
There are some less romantic parts about officially becoming a couple – and that includes joint banking, taxes, and planning for your financial future, which should include life insurance for couples.
From making sure your home is paid for in the event of your death, to protecting your family with life insurance, purchasing the right life insurance as newlyweds could mean lifelong protection in the event you were to lose your spouse too soon.
We get it – the last thing you want to think about is your fiancé(e) dying. But let’s think for a moment. If you knew you could protect your partner’s financial future in the event of your death, would you even hesitate?
There are many types of life insurance options available for you as newly married individuals. Here are the most common ways you can help protect yourself and your partner as you start to build a life together.
Term Life Insurance
When you’re first starting out in life, you may find that you have more debt than assets. This is easily managed when two partners are working, but what if one of you were to pass away unexpectedly? It would make debt repayment difficult. This is where term life insurance comes in handy.
Term life insurance is meant to cover debt or income loss. Purchasing term life insurance can mean you or your spouse will receive a lump sum (i.e., a single payment that amounts to the current value of the policy) if one of you were to pass within the term of your policy. Term policies typically range from 10, 20, or 30 years
This lump sum of money is something that you can use to pay off your mortgage or other outstanding debt, save for retirement, or cover funeral expenses¹. Your surviving spouse could also choose to use the money received as income replacement – to maintain their current standard of living at the time of your death – which is especially important if you’re planning on having children. Child care is costly and with the lump sum your partner receives, they wouldn’t have to worry about having enough money to remain in the family home and provide the kids the quality of life you both dreamed of.
If you’d like to learn more about term life insurance, give our Guide to Term Life Insurance a read!
Whole Life Insurance
If the two of you are lucky enough to have some expendable income to invest, you may want to consider whole life insurance instead of the temporary option. While it is a more expensive option than term life insurance, it comes with two big benefits term is lacking:
- A guaranteed payout – You don’t have to worry that your coverage will expire once your term is up. This means your partner (and potential future children) will receive financial protection for both the short- or long-term.
- Growth potential – A whole life policy comes with an investment component, called a cash value2. This can be a nice way to complement your RRSP, GIC, or even a child’s RESP. That’s because you have the freedom to access your cash value when you need it most – for a costly renovation, a family trip, or a new car – this type of investment isn’t limited to your retirement years or when your child goes off to post-secondary, for example. Speak with an advisor to learn how you can grow your money even faster, thanks to the compound effect.
If you’d like to learn more about whole life insurance, give our Guide to Whole Life Insurance a read!
Whatever you decide, the reality is this: Life insurance for newlyweds is really about living your brand new life together to the fullest – without wasting a single moment worrying about your family’s financial future.
Other financial benefits to tying the knot3
In case it wasn’t clear, there is a real financial benefit to purchasing life insurance as newlyweds. But guess what – it doesn’t stop there!
Workplace Benefits
Let’s say you don’t have any health coverage, but your soon-to-be-spouse does. In most cases, they will be able to add you onto their employee plan, sometimes for a minimal cost. You know what that could mean? Having some (or all) of the cost of your yearly RMT, physiotherapy, or acupuncture appointments covered, help paying for those expensive glasses you need replaced, or a partial or full reimbursement for dental work. Depending on your spouse’s plan, you could be looking at yearly savings in the hundreds or even thousands.
If both of you already have workplace benefits through your employer, you may be able to coordinate your plans, potentially topping up the amount that may only have been partially covered before. This can become even more beneficial when you have a family – because two plans are better than one when it comes to supplementing more costly health expenses, like braces or vision care, that may be needed down the road.
Quick tip! Many plans make it a rule to add a new spouse within a certain timeframe, so be sure to check with your provider ahead of time so you don’t miss out. And of course, all workplace benefits plans are different, so be sure to read the fine print to understand how to make the best use of yours.
Tax Benefits
Once you are married, speak with your accountant about filing joint tax returns. There are typically some cost savings for claiming multiple tax benefits, and things like combining medical expenses or charitable donations could help decrease your amount owing or work to increase your tax refund. Be sure to ask your accountant about other potential savings opportunities, like claiming a spousal tax credit or using spousal RRSPs.
Well, there you have it. There are many reasons to celebrate your engagement. And while the wedding of your dreams may end up costing you a small fortune, remind yourself that you can (hopefully) earn that money back over the years… thanks to the financial benefits of saying ”I do.”
Why choose Serenia Life insurance for newlyweds?
As a member-based organization that’s been around for nearly 100 years, we encourage kindness by sharing a portion of our profits through community outreach, fundraising, and unique member benefits that help Canadians support their family, their community, and the causes they care about. The more we grow, the more we can give.
We provide members with access to a growing collection of member benefits that make a positive impact on their lives and the lives of others, such as:
- $1,000 post-secondary scholarships
- $250 seed funding towards fundraising events
- Free digital wills (value: $189), or $150 reimbursed when drafting/updating a will through a lawyer
- And much more
View a full list of our member benefits.
Disclaimers
This blog post contains general information only. Because each person’s situation is unique, it is best to speak with a qualified professional before making any final decisions. Serenia Life Financial does not advise clients on tax, accounting, or legal matters.
¹A funeral in Canada can cost as much as $20,000 (source).
2Cash values are accessible via a withdrawal, policy loan, or surrender. These may be subject to taxation and a tax slip may be issued. Accessing the policy’s cash value will reduce the available cash surrender value and death benefit.
3Some of the benefits listed in this article also apply to common-law partnerships, but be sure you meet the government definition of ”living common-law” before you start celebrating.
