Life Insurance for Married Couples

Marriage makes the couple emotionally as well as financially dependent on each other. In case something happens to one of the partners, the other may face huge difficulties. This can be avoided by availing adequate life insurance coverage as it provides financial security in case of any untoward incident.

A large part of the Indian population is still uninsured due to various reasons like lack of awareness, high premiums, and other such factors. Unfortunately, there is no certainty in life and in the case of sudden demise; the surviving spouse may have to face severe financial difficulties if insurance is not available.

Here’s why life insurance is important for married couples

Increase in expenses
Once married, there is an increase in the overall household expenditure. In addition, the couple may assume more debt for various purposes, such as marriage, buying a home, and starting a family. Managing these increased expenses and obligations is not possible in single-income households. As a reason, both spouses work and meet these expenses jointly. A life insurance plan is beneficial in offering income replacement in case the need arises. This provides peace of mind and the assurance that the current lifestyle can be sustained in case there is any unfortunate incident.

Debts responsibility
Married couples often avail automobile loan, home loan and loan for children’s education. In case of the sudden demise of the primary earner in the family, all the obligations of repaying the outstanding debt falls on the surviving spouse. These are repaid through the estate of the deceased, which can significantly reduce the amount that is left for the survivors. In case the estate is insufficient to cover these obligations, the family members may have to forego their home too. Availing life insurance plans to cover such disastrous possibilities is therefore important.

Life insurance premium increases with age
Most people get married during their mid-20s and often consider death as a faraway event. Often, couples delay buying life insurance policies until they are older. Although pension plans in India are available for retirement planning, there is no certainty in life and sudden demise can leave the surviving spouse in a complete financial mess along with the emotional distress. Another reason for delaying insurance coverage is to save the money that would have to be paid as premium. However, it is important to remember that the cost of buying insurance only increases as a person grows older. Medical illnesses become more probable over the years, which can significantly increase the premium that individuals will have to pay towards availing life insurance coverage at an older age.

Lower insurance premium
The insurance premium is lower when the person is younger. This is because the life insurance company considers the mortality rate to be lower for young adults. In addition, most young couples are healthy and do not suffer from any critical health conditions. This allows the insurance companies to offer higher coverage to the individuals at lower and affordable premium rates. Lower premiums make it easier and cost-efficient for married couples to acquire life insurance early in their lives.

These are the different kinds of life insurance products that are beneficial for married couples.

Term plans
These plans provide an excellent way to acquire higher coverage at affordable premiums. The policy benefits on these insurance policies are available to the beneficiary in case of the demise of the insured. Term plans offer no maturity benefits but offer the most affordable way to avail insurance coverage.

Traditional insurance plans
Whole life insurance plans or traditional insurance policies are other options available to the individuals. These plans last for the entire life of the insured and offer a good way to build wealth over the years. These policies can also be used to meet financial goals in the long and short term. Policyholders can also avail loan against these insurance policies in case of emergency fund requirements. However, such policies are expensive and ensuring your capability of paying the premium over several years without facing liquidity crises is crucial.

Marriage brings lots of responsibilities. In order to safeguard loved ones, couples are advised to avail insurance coverage. Adequate coverage ensures financial security to the surviving spouse and gives peace of mind.

About HDFC Life
HDFC Life, one of India’s leading private life insurance companies promoted by HDFC Ltd. & Standard Life Ltd., offers a range of individual and group insurance solutions. HDFC Life’s product portfolio comprises solutions, which meet various customer needs such as Protection, Pension, Savings, Investment and Health.