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Term Life vs. Whole Life Insurance for Couples without Kids

By Compuquotes Team on March 26th, 2008

If you don't yet have children, then you may be thinking that it is too early to worry about life insurance, however this is far from the truth. Life insurance can benefit any person at any stage of life, and should be seriously considered before it is dismissed. If you were to die tomorrow, your spouse might not have the burden of childcare, but what about housing expenses, car payments, and funeral arrangements? The costs of living are only going up, and cushioning the blow for your loved ones is the least you can do, especially since it costs so little.

The type of insurance that you choose for yourselves, however, might vary depending on where you are in life's journey together. There are two main kinds of life insurance to consider: whole life insurance and term life insurance. Term life insurance protects you for a specified period of time from one year to thirty. Initial costs and monthly premiums tend to be lower, but your coverage ends at the end of the term, and cannot be renewed at the same rates. Whole life insurance costs more to start up, but will last as long as you pay the monthly premiums. Whole life insurance covers you from the day you sign the papers until the day you die.

So which of these is best for you? If you are a couple with no significant loans or financial burdens, then consider investing in whole life insurance. The younger you are when you buy a policy, the better off you will be. This is because you will have locked in the lower rates for your entire lifetime, and the policy cannot be cancelled by the insurer because of health problems or age. This policy will protect you throughout your entire life, and should cover the funeral costs plus a little more (the bigger the policy, the more expensive, so think minimally here). A whole life insurance policy should be the foundation of your life insurance.

That leaves the meat of the insurance, which you will want to be variable as your life changes. Term life insurance, by nature, is variable and adaptable to your life situation. If you are about to invest in a new car or any other expense that requires a new loan burden, consider adding life insurance to protect your spouse or partner should anything happen to you while they are under the burden of the loan. The policy would only need to last as long as the loan is expected to last, and can offset the risk of making an investment.

The same can be said of the risk of having children. If and when you decide as a couple to take this step, you can arrange for term life insurance to last until the children are grown and out of the house. This protects your spouse from the financial burden of caring for the children when you are gone, and will allow you to reduce your coverage once the children are out of the house and caring for themselves. Keep in mind that you will also have the initial whole life insurance policy, which will still be effective after the term life insurance is no longer needed and expires.

Life insurance is important for everyone. With a little guidance, you will be able to make the right choices to last your lifetime.

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