Tell The Truth With Life And Critical Illness Insurance
Lying to your spouse is a terrible idea. Unless you're talking about something insignificant. Like, say, how that black shirt will look good with the gray pants once you lose some weight. Or how the bag of chocolate-covered hazelnuts didn't really do much damage to your fitness goals this month.
But if the subject matter is even slightly important — like whether or not you have life and critical illness insurance — then lying might be your best bet. It's hard enough for any spouse to go through financial hardship, but it's even worse when they're grieving over a lost loved one because they weren't prepared for the inevitable event.
It's common sense that couples should have a financial plan for married life. Everybody should. But it's even more imperative that they have protection for their families in the event of a death.
The purpose of this article is to encourage people to take the subject of an insurance policy seriously, and to ask themselves some hard questions if they haven't done so already. In particular, we're looking at life and critical illness insurance, which is often overlooked as optional but should be considered essential for anyone with plans to get married or start a family. We'll also consider why you might not want your spouse to know whether or not you have coverage.
In this article, we'll cover the following concepts:
What life and critical illness insurance is.
Why you should consider it.
How to find a decent policy at a reasonable price.
How to maintain your insurance after marriage. (Especially important if you've got more than one spouse in the mix.)
When it comes to financial planning, I admire people who do the same with their medical coverage as they do their insurance. If you have a plan for your medical expenses, there's no reason why you shouldn't also have some sort of protection for your family in the event of a loved one's passing. The insurance market is competitive, and there are some great plans out there.
Let's take a closer look at each of these concepts.
1. What Is Life And Critical Illness Insurance?
Life and critical illness insurance covers financial obligations that occur if the policyholder dies or cannot work for a specific period of time because of illness or injury — often as long as six months after the problem arises. For instance, if your spouse suffered a debilitating disease such as cancer while you had taken out a policy on his life, you would be set to receive a lump sum paid in proportion to the amount of coverage you had purchased on his behalf. It's a serious matter, and one that shouldn't be taken lightly.
2. Why You Should Consider Getting Life And Critical Illness Insurance
It can be expensive to live without a spouse's income, which is why life insurance is often called the "death benefit." A lot of people tend to ignore it as something they'll never need. But if you have a loved one who depends on your income for their survival, then you ought to consider life and critical illness insurance as an option. The same goes if you plan on starting a family or buying a house in the near future — this kind of coverage can protect your spouse and new children from financial instability.
Additionally, life and critical illness insurance may also be a good idea for people who are thinking about getting married. All couples will have to make some financial sacrifices when starting a family, but as long as they know that they'll be able to survive in the event of the inevitable trouble, it will probably never happen. By purchasing life and critical illness insurance, you can rest easy knowing that your spouse is secured financially when something terrible happens to you or them.
3. How To Find A Decent Policy At A Reasonable Price
I recommend shopping around to find a plan with terms that work for you — something that provides adequate coverage while still being affordable. The average cost of these policies is about $100 per month, although you can get more expensive plans if you need more beneficiaries.
If you're able to save money each month, then you may be able to snag a better deal on a plan. But make sure that the company is not charging outrageous fees to maintain your policy — this is why some companies charge annual premiums whereas others charge monthly fees. Also, be sure that the coverage satisfies your needs. For instance, if your income fluctuates a lot due to job changes or contract work, then life and critical illness insurance might not be as important for you as it would for someone who gets steady paychecks each month.
4. How To Maintain Your Insurance After Marriage
If you're smart about it, then life and critical illness insurance can be maintained even if you get married. For instance, if you're already living with your spouse and don't plan on moving out anytime soon, then don't worry about getting a new policy in the event of an upcoming marriage. But if you've got other plans — like buying a house or starting a family — then it might be in your best interest to get your own policy before signing up for his or hers.
Most life and critical illness plans do have guaranteed-renewal clauses that allow for an immediate transfer of coverage in the event of a marriage. This means that if your spouse takes out an entirely different policy, you can immediately replace your own policy with a new one provided through another insurance company.
In addition to the above information, you should also make sure that you keep your current policy up to date with all pertinent documents — such as medical records — that are required by the insurance company.
5. Conclusion
Life and critical illness insurance should be considered a necessity for anyone who values the security of their family, and it can also be a good financial planning tool. If you're in a position to take care of your spouse financially, then you're probably in the position to take care of their medical needs as well. Consider whether or not this is something that makes sense for your situation.
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Related Articles: 1. How To Save Money On Life Insurance 2. Minimum Life Insurance Coverage 3. How Much Life Insurance Do You Need 4. How To Retire With $1 Million 5. 3 Life Insurance Traps to Avoid 6. Choosing The Right Term Life Insurance Policy 7. The Most Common Life Insurance Mistake
By Vince Lanci, Frequent Contributor to Financial Samurai
Vince is a husband and father of two young children living in the Midwest. He loves the outdoors and getting out as much as possible with his wife and kids. Over the years, he has played every sport possible from football to tennis to even skydiving – but never golf! His interests and hobbies include just about anything that gets him outside.
Conclusion
Life and critical illness insurance is definitely something that you'll want to think about before taking the plunge of marriage. In fact, it's a good idea to get life insurance at least a few years before you get married, and if possible, even before getting engaged. Why? That way, you can always make sure that your spouse will be financially protected in the event of a divorce or other major life events!
What's Next?
If you're not already worried about what will happen to your finances after marriage, then why don't you start by getting this free guide "3 Big Mistakes Couples Make In Finances Fucking Up Their Finances" that we have put together for just this purpose.