Personal Finance Insider writes about products, strategies, and tips to help you make smart decisions with your money. We may receive a small commission from our partners, but our reporting and recommendations are always independent and objective.
- My partner and I decided to purchase life insurance before we got married or had kids — we’d bought a house together and wanted to be sure the other person could keep it in the event that one of us died unexpectedly.
- We chose to buy 30-year term life insurance policies, one each, valued at $1 million per policy.
- We settled on term life insurance because it’s cheap, stable, and covered our needs.
- Policygenius can help you compare life insurance policies to find the right coverage for you, at the right price »
I wasn’t super familiar with the life insurance world until I became an insurance broker myself. Once I’d passed my insurance exams, though, my then-fiancé and I decided to get life insurance right away.
A few years before meeting my now-husband, my dad had developed terminal liver cancer. By writing a letter to his insurance company that was signed by his doctors, he was able to access his policy in order to take my brothers for a trip through Europe before he died.
Although there wasn’t any life insurance money left when my dad die several years later, this experience made me realize the importance of life insurance and the options it provides, and my partner and I didn’t want to wait to purchase policies of our own.
My fiance and I bought our first home the year before we got married and knew that if one of us died unexpectedly, we wanted the other one to be able to live there without concern about how to pay the bills. In that case, life insurance would be a huge help.
Another reason we decided to purchase life insurance before we got married or had children is that we were both in good health, and knew the future could be unpredictable.
Even though neither of us has experienced a major illness or injury since buying insurance, it’s obviously not possible to foresee the future and we didn’t want to take any chances since the cost of life insurance depends on your health and age.
So then it came down to what type of insurance we wanted to buy. There are loads of different types of life insurance, but the main two are term life and whole life insurance. You can purchase life insurance policies that are based on fixed interest rates, and others that are tied to the performance of the stock market.
When it came down to which policy was right for us, we considered three factors: coverage amount, affordability, and predictability.
First and foremost, we wanted to make sure that we had life insurance policies that covered everything we needed them for.
Even though we purchased the policies pre-kids, we wanted to factor in a growing family as we knew we wanted children. We also wanted to be able to pay off the home for the other and cover a certain level of living expenses for 20 to 30 years in the event of an unexpected death.
We knew our life insurance policy had to fit into our budget. There was no use in getting a policy that stretched us financially as we would have had to cancel it down the line if that was the case and didn’t want to go into debt trying to afford a life insurance policy.
We weren’t comfortable with our life insurance policy being tied to interest rates or the stock market in the event that one of those environments went south and our policy wasn’t performing the way we needed it to. So we decided to go with a $1 million, 30-year term life insurance policy for each of us.
At the time, we figured 30 years would bring us close to our retirement age and thus help cover any years where there was only one income to live on in the event one of us had died.
The term policy was much cheaper than a whole life policy, the death benefit amount ($1 million) was set, and we knew exactly how much we would be paying each month (or year) for the next 30 years.
All that being said, I recommend individuals shop around for term life insurance policies that fit the needs of their family. I know a lot of people want to wait until they have children, but if you and your partner are in it for the long run there’s no better time to purchase than when you are young and healthy.
Real Life. Real News. Real Voices
Help us tell more of the stories that matterBecome a founding member
- Still shopping for life insurance? Get quotes from these Business Insider partners:
- Get quotes from Policygenius »
- Get quotes from Ladder »
- Get quotes from Fabric »
- Get quotes from Haven Life »
- Get quotes from Bestow »
The information related to the following cards has been collected by Business Insider and has not been reviewed by the issuer: Chase Freedom Unlimited®, Chase Freedom®, Chase Slate®, Ink Business Preferred® Credit Card
Ink Business Cash℠ Credit Card, Ink Business Unlimited℠ Credit Card, Southwest Rapid Rewards® Premier Business Credit Card, Southwest Rapid Rewards® Performance Business Credit Card, IHG® Rewards Club Traveler Credit Card, United ClubSM Infinite Card, United℠ Business Card, British Airways Visa Signature® Card, The World Of Hyatt Credit Card, Citi Diamond Preferred Card, Citi Rewards+ Card, Citi Rewards+ Student Card, CitiBusiness AAdvantage Platinum Select World Mastercard, Citi AAdvantage Executive World Elite™ Mastercard, American Airlines AAdvantage MileUp Card, Citi Secured Mastercard, Costco Anywhere Visa Business Card by Citi, Citi Prestige Credit Card, Citi Premier Card, Citi Simplicity® Card
Take control of your money. SmartAsset’s free tool matches you with a financial planner in your area in 5 minutes. Learn more »
Disclosure: This post is brought to you by the Personal Finance Insider team. We occasionally highlight financial products and services that can help you make smarter decisions with your money. We do not give investment advice or encourage you to adopt a certain investment strategy. What you decide to do with your money is up to you. If you take action based on one of our recommendations, we get a small share of the revenue from our commerce partners. This does not influence whether we feature a financial product or service. We operate independently from our advertising sales team.
Subscribe to the newsletter news
We hate SPAM and promise to keep your email address safe