Life Insurance and Marriage: A Major Life Event

When two people enter marriage, their lives become interwoven. This includes finances, businesses as well as health and life insurance. Previous individual duties now become joint.

Is Marriage a Qualifying Life Event?

Yes. Not only is the “Big Step” a major life milestone, but it is an eligible life event that triggers a Special Enrollment Period for your insurance coverage to ensure that you and your spouse have adequate protection. 

Other common life events include: 

• Having a child 
• A family member passing away 
• Retiring 
• Moving 

Feds can explore the qualifying events that OPM outlines here. 

Why Married Couples Need Life Insurance

Life insurance is a stable, simple, and effective tool to provide your new family financial support in complicated situations. Its fundamental purpose is to compensate for the death of a person, and that compensation (death benefit) is also an income replacement. For beneficiaries, it may be the only way to financially stabilize yourself if the deceased policyholder contributed all or most of the income to a relationship. Life insurance is vital to the financial security of a couple.

Explore Four Ways Life Insurance Protects the People You Love >

Living together will involve more expenses, which is why there are plenty of reasons to think about buying life insurance.

• A bigger house
• A new car
• The cost of having children
• Joint businesses
• Leaving inheritance
• Having debts

Life insurance policies provide many options to protect you as both a couple and a family. It’s imperative that your coverage guarantees compensation in the event of the unexpected.

Spouses generally name each other as the beneficiary of the policy. By doing so, the survivor will generally receive the benefits tax-free. The sooner you purchase life insurance the better, as you will save money. Rates for younger couples are more attractive because they present fewer risks and have a longer life expectancy.

Types of Life Insurance for Married Couples

You’re probably asking yourself, what type of life insurance should I consider? The answer depends on your current and future situation.

Here Are The Basics

Term Life Insurance

Provides protection for a set period and pays a lump sum if you pass during that time. These policy premiums are generally less expensive, increase in age bands every five years, and last 10 to 30 years. You can also purchase add-ons to customize your coverage. Term life insurance typically offers the most amount of coverage for the lowest initial premium.

How Long of a Term Do I Need?

This is based on your age and how long you need coverage. Policy lengths range from ten to thirty years.

Whole Life / Permanent Life Insurance

Provides lifelong coverage. It is more expensive than Term Life but can last your whole life while building cash value. Whole Life offers a fixed death benefit with the cash value component growing at a guaranteed rate of return. Many Whole Life Insurance policies pay out dividends that can be used to reduce premium payments or add to your cash value.

Joint Life Insurance

Provides coverage for two people, with the death benefit being paid to beneficiaries after one or both people die. Joint life insurance is typically issued as a whole life policy. 

Reviewing Your Life Insurance Needs as a Married Couple

As you and your spouse embark on your life together, you want to ensure that you have collective peace of mind. 

Review your joint life insurance needs, considering your joint income, health histories, debt, and if you are planning on growing your family. 

These factors will help you collectively assess how much coverage you need. 

Use WAEPA’s free coverage calculator > 

Securing life insurance protection for your new family can play a critical role in your future financial wellness, family planning, and more. By exploring life insurance coverage options, you and your spouse can help create a lifetime of love and peace of mind. 

WAEPA’s Associate Membership

WAEPA has offered exclusive Group Term Life Insurance to current and former Feds since 1943. Among WAEPA’s life insurance options for Federal employees, we are proud to offer exclusive coverage to spouses of Feds.