Starting a New Relationship

Information verified correct on September 24th, 2016

Making the Decision on Taking Out a Life Cover when You Start a New Relationship

Starting a new relationship is exciting, but it is important to start a new life with some securely. Nowadays, there are pre-nuptial agreements that protect someone's interests, insure a car, a house and other properties. But obtaining a life insurance policy seems to be at the bottom of the barrel. When a person is offered the benefit of life insurance, the question, "why should I worry about money when I die?" automatically registers in their brain. That's because a person's instinctive reaction is about one's self, not the people they will leave behind.

When you start a new relationship, you have the future in mind, thus building a family. When you think of family, you think about how to protect them. Getting a life insurance policy is entwined with your family security. By getting one you are protecting the other; you are letting your family know that should something untoward happen to you, the financial burden will not be as extreme as coping with your loss. The same benefit goes the other way around should you lose your partner.

Why Get a Life Insurance Policy

There are numerous reasons why a person should consider obtaining a life insurance policy when starting a relationship:

  1. Income Replacement – When you and your partner decided to have a future together, you have also planned a life based on two incomes. What will happen if for some unexpected reason, one of you passes away? Life insurance will be useful in replacing half of the income that was lost due to death and maintain the same standard of living.
  1. Mortgage Protection – Do you or your significant other want to be homeless should one of you die unexpectedly? Think about it, coping with loss is overwhelming already, if you add financial burden on the recipe, it could add up to catastrophe.
  1. Final Expenses – The last thing you want for you or your partner to shoulder is an extra burden like funeral expenses, burial costs and medical bills. All these expenses can add up to a hefty amount.
  1. Education – Consider education expenses if you have children. Once you become a parent, the rule of thumb is you and every adult in your household that has income should have life insurance coverage until the youngest child graduated from college. The money from your life insurance can cover college expenses. How can this be? The monetary benefits from the life insurance can be invested and therefore it has a potential to grow.

After considering all these factors, it is time to start planning what is important for you and your partner and identify what your long-term dreams are. You can get the help from a financial adviser to determine your financial priorities as well as choosing the life insurance you can afford.

Choosing the Perfect Life Insurance

Here are simple tips in choosing your life insurance:

  • Affordability – Decide which one you and your partner can afford. This is very important because if you miss a payment, your policy gets cancelled and you will have to start all over again. Weigh the associated costs before purchasing.
  • Type of Policy – Compare each policy that is available within your area. Also consider the factors should you decide to get two single policies or joint life insurance. The benefits of a joint life insurance policy are that it is cheaper and very cost effective but it could end up leaving the other party uncovered. Having two single policies means that should there be a relationship breakdown, both plans need not be cancelled. That's because unlike a joint life insurance, both single plans are separate. Let's face it, life has no guarantees and being prepared will save you the hassle of changing everything and starting all over again.
  • Lifestyle – Insurance companies see you as a risk until they have a reason to believe otherwise. If you are a smoker, or an extreme sport fanatic, you might consider changing your lifestyle if you are looking for an affordable life insurance policy. As your personal situation changes, you life insurance does too.
  • Educate Yourself – Have someone who has experience review the policies available. Use the tools available to you, research the Internet, ask your friends and ask your parents. Write all the pros and cons and get a second opinion. Get at least five quotes you can compare with. Research your choices thoroughly. Keep in mind that whatever policy you choose, it is long term.
  • Hidden Catch – Be careful when choosing your policy. Treat it like you treat all other legal documents. Read through the whole document and do not be afraid to sleep on it before you sign.
  • Choosing the Right One - Make sure you know the reputation of the company and the underwriter you are considering getting your policies from. Ask your friends and families for references and make sure you confirm their credentials.

Now that you have the tools to determine why you need life insurance and how you can get one, start doing your research on the policies which suit your needs now. Don't put it off. The younger and healthier you are when you get insurance, the more affordable it will be and the easier it will be to get approved.

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Coverage is the amount of money that you will be paid in the event of a claim. An insurance consultant can help you determine an appropriate amount. Calculator
Provides a lump sum payment if you become totally and permanently disabled and are unable to return to work.
Provides a lump sum payment if you suffer a serious medical condition. Cover can be taken out for 40-60 medical conditions depending on the policy you choose.
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Income Protection
Income Protection
Cover up to 85% of your income up to $10,000 per month if you can't work due to sickness or injury. Cover for over 1,000 jobs and full-time, part-time and self-employed.
  • Monthly benefit up to $10,000
  • Cover for applicants up to age 60
  • 30 day cooling-off period
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Income Protection
Income Protection
Receive up to 75% of your income each month to a maximum of $25,000 if you can't work due to serious illness or injury.
  • Monthly benefit up to $25,000
  • Available for applicants up to 59 years old
  • 21 day cooling off period
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