New Survey Says Marriage Plans Don’t Safeguard Financial Futures

There’s so much to plan when getting married that it’s easy to get bogged down in the details. It’s crucial not to lose sight of what matters, and one of the essential matters to consider is your financial future as a couple.

According to an August 2007 survey conducted by Allstate Insurance, the typical newlywed couple has combined assets of approximately $107,000. Despite this, few newlyweds make provisions to protect their financial future through purchases such as life insurance. Sixty-one percent of those polled said they hadn’t purchased life insurance before marriage, and 64 percent of that group still hadn’t purchased coverage within the first three years of marriage. A mere 23 percent of the respondents said they bought life insurance during their first year of marriage, and another 9 percent did so before the end of the third year.

The study revealed some other interesting findings.

  • Of the men who responded, 42 percent had life insurance beyond their employers’ coverage before marriage. Only 35 percent of the women respondents had coverage besides their employer-provided.
  • Of those surveyed, 53 percent said purchasing life insurance showed a commitment to their future as a couple.
  • Of those questioned, 42 percent said life insurance would be a thoughtful and meaningful gift for their spouse. Still, only 3 percent said they would likely receive a card or note to meet with a life insurance agent as an anniversary gift.
  • Even though life insurance isn’t traditionally considered a romantic token of affection, it is a meaningful gift that shouldn’t be overlooked. To help you find the coverage that’s right for the two of you, consider the following tips:
  • Talk to an expert. Meet with an insurance professional to evaluate your financial needs and goals and to determine how much life insurance you and your spouse need. Your insurance agent can also explain possible coverage amounts and options.
  • Plan for the future. Will you have debts that would need to be paid? Will you have enough to cover your children’s education costs? Will you have aging parents who may need care? Having life insurance in the event of untimely death can help provide the funds to meet these situations.
  • Don’t rely on savings alone. Most people do not have nearly enough savings to allow their family to pay off final expenses or hold onto assets, such as the family home, without the added protection of life insurance.

Employer-based coverage is not enough. Furthermore, group life insurance through an employer isn’t typically portable. If an employee leaves the job, they are also leaving their life insurance behind. That’s why it’s necessary to have an individual life insurance policy that is yours no matter where you work.