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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

Milestones when it might make sense for couples to reevaluate life insurance coverage

Being part of a couple often means looking out for a partner’s financial security. One component of providing a partner with financial security can come from having the right amount of life insurance coverage. Because circumstances change, couples likely want to reevaluate their coverage at several points throughout their relationship. Below are some major milestones when a couple might want to revisit their life insurance coverage or consider coverage for the first time:

Getting married

Getting married is a big milestone. It’s often when couples merge their finances. Many couples take the opportunity of a major life event to update the beneficiaries on their group life insurance policies at work. Marriage can also be a reason couples choose to get life insurance for the first time. Spouses depend on each other, and life insurance could provide financial security and replace income lost if one spouse were to pass away.

Buying a house

A mortgage is usually the biggest debt couples will take on in their lifetime. For this reason, couples often consider getting life insurance as purchase protection or reevaluate the amount of coverage they have when they purchase their first home. If one spouse passed away, the death benefit from life insurance can allow the other to continue paying off the mortgage.

Having a first child

Becoming parents is a life-changing event—and it’s natural for couples to want to do everything they can to financially protect their children. The birth of a first child can be a good time to get life insurance for the first time or reevaluate existing coverage to ensure it still meets a couple’s needs. The death benefit from a life insurance policy can replace lost income if a parent were to pass away, providing financial security during a particularly vulnerable time.

Growing a family

As families grow, so do their financial responsibilities. Having a second—or third, or fourth—child can mean in increase in current and future expenses, from diapers and daycare to college tuition. For this reason, couples often reassess their life insurance coverage when having another child.

Having an empty nest

An empty nest can mean fewer expenses and more disposable income. It can also be a good time for couples to reassess their life insurance coverage. If they have paid off their mortgage and other debts, they may no longer need as much death benefit. However, a permanent life insurance policy, such whole life insurance, may still make sense. With a guaranteed death benefit, permanent life insurance can ensure parents can leave a legacy to their children and grandchildren.

The bottom line

No matter what stage of life a couple is in, it’s important to have an honest conversation about life insurance and how it can benefit the people they love. Reviewing coverage regularly can help ensure that couples have the right amount of protection in place as their needs change over time.

 

Source: Northwestern Mutual

Contact: Don Klein, 1-800-323-703

Contact Information:

Name: Don Klein
Email: donklein@northwesternmutual.com
Job Title: Assistant Director - Field & National Grassroots Public Relations

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