My wife and I recently revisited a conversation that we have every once in a while about life insurance. We probably wouldn’t be considered newlyweds since we have been married almost four years, but are still living a newlywed lifestyle. We are still renting an apartment (we will be buying later this year), don’t have kids, and are enjoying the benefits of having few responsibilities while it lasts! 😉
As our financial situation changes we revisit the discussion about life insurance. When we got married, we had a big load of debt, but I also had a decent amount of insurance coverage from my employer so we decided against it. Now, after paying off most of our debt, we only have a student loan remaining, but we don’t have the free life insurance from my employer either.
Why we are waiting to purchase life insurance
After these changes I thought it was worth discussing the insurance question again. After discussing it, we decided that we will get life insurance after we had our first child or if other major life changes come up. Generally, I think it is a good idea for newlyweds to have life insurance, but in our case we decided against it for these reasons…
- My wife is working and is getting paid a salary that she can support herself with
- We have no debt other than a student loan
- We don’t have any kids (or pets) that we need to support
- I have earned enough Social Security credits that my wife would get a decent sized monthly check if I died
- We have enough savings built up that funeral expenses would be covered
I know that term insurance is cheap at my age, but I also don’t like paying for things that we don’t need. So, like I mentioned I think we are going to continue to hold off until we have a child. What about you, did you have life insurance as a newlywed? Should you have?