Talking to your spouse about how you might pass on unexpectedly is not the best way to set the mood, but it’s a conversation all couples need to have.
If you were in a movie directed by David Fincher and your spouse suddenly took out a life insurance policy in your name right before your first sky-diving excursion, it’d probably be cause for alarm. Luckily for you, you live in the real world, and your spouse is likely just worried about their financial future on the off chance your parachutes don’t open. If one or both of the partners in a marriage or long-term relationship are financially dependent on one another, it’s time to talk about life insurance. Here is what you should ask yourself if you or your spouse are thinking about taking out a life insurance policy.
Who needs a policy?
When considering life insurance options, it is simplest to think about what your family would need if you were to pass suddenly. In most cases, it means replacing any vital income that would be lost. Things like mortgage, student loans, credit card debt, funeral costs, children costs, and any other things that would be impossible to pay without your share of the income.
What should I consider?
- How long it will take for a surviving partner to get to retirement or self-sufficiency
- How long children may be dependent on the parents
- The cost of college for children
- Household expenses and debts (including mortgage)
What kinds of policies exist?
Life insurance primarily comes in two categories: term life insurance and whole life insurance. Term life insurance, as its name suggests, lasts for a specific amount of time but is generally the cheaper option. Whole life insurance, on the other hand, may be more expensive but lasts as long as you do.
Contact VGW Walker Insurance in Austin for all of your Texas life insurance needs. We will help you choose the right kind of policy while ensuring you have selected the right amount of life insurance.
