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Did you get engaged on Valentine’s Day?

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Financial planning and priorities for newlyweds

  On Valentine’s Day, we all try to make sure our loved ones feel just that – loved. It’s a time for grand gestures, romance and maybe even popping “the question.” Talking about life insurance isn’t a topic typically on the menu. But maybe it should be. For future brides and grooms as well as newlyweds, couples planning to build a life together should take prudent actions to help protect their financial futures. American relationships are changing, and finances are playing a key role.

  In fact, a new study, “For Love and Money” from the nonprofit Life Happens, found that those in a relationship are talking openly about their finances even before saying “I love you.” The study found that 59 percent of people would feel more secure in their relationship if they discussed getting life insurance with their partner, and that men are more likely than women to say that purchasing a life insurance policy is a financial way to demonstrate your love (40 percent vs. 33 percent).

  “Securing life insurance should be one of the first priorities for newlyweds but is often, perhaps understandably, overlooked,” said AIG Life US President Timothy Heslin. “However, if you pass away unexpectedly and don’t have coverage, your spouse could become responsible for any debts you may have. Purchasing a life insurance policy is one of the best ways to help protect your partner against a financial crisis if something were to happen to you.”

  Newlyweds should consider updating or securing life insurance coverage as part of their financial planning as it helps provide protection against the following:

  • Debt: Whether it’s student loans, a car payment, mortgage or credit card debt, our debts can outlive us. Any debts left behind would then be paid out of your estate or assets. A life insurance policy can be used to help your family members cover the debts that could pass on to them or to simply make sure they’ll have enough money to cover expenses after you’re gone.
  • Loss of income: Couples often pool their incomes to be able to take on bigger financial obligations, such as renting a nicer apartment, buying a home or buying a new car. One of the primary reasons to buy life insurance is income replacement – so that after you die your family can maintain their lifestyle and future plans.
  • Education costs: Parents, future or current, intend to be prepared for their child’s educational future. In the event that you or your spouse dies, life insurance can help cover or supplement the cost of your child’s education.

  · High insurance premiums: The younger you are when you purchase life insurance, the lower your monthly payments will likely be. By locking in an affordable rate at a younger age, you could save thousands of dollars on insurance premiums over the course of your lifetime.

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