Life Insurance for Newlyweds & Young Couples

Q: How much life insurance do newlyweds need?

To calculate how much life insurance you'll need , the following should be considered: Outstanding mortgage balance Any debt in your name Funeral costs Loss of income Additional childcare costs Age of your dependants Day-to-day living expenses By adding up these costs you'll be able to establish a suitable cover amount to protect both you and your partner.

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Life insurance for newlyweds

Congratulations, you have tied the knot!

Life insurance for newlyweds can be a tricky subject, however, once the celebrations are over, you may be ready to discuss how you can protect each other financially if the worst were to happen.

Particularly during this chapter of your lives, when you may be considering buying a home or starting a family soon.

Understanding the different life insurance options available, the costs involved and how arrangements can be made to protect your loved one may be at the top of your to-do list.

This could actually be the most affordable time for you to arrange cover, too.

Life insurance for young couples who are in good health are in the ideal position to take advantage of low-cost monthly premiums. This is because they pose less of a risk to insurers.

A newlywed couple taking out life insurance in their 20s or 30s could obtain premiums starting from just 20p-a-day^†.

Keep reading to learn how to secure your lowest premium...

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Life insurance for married couples

Should married couples have life insurance?

This depends on your own personal circumstances and what you need to protect.

If you were to pass away unexpectedly, would your loved ones experience significant financial strain as a result?

Newlyweds often have a number of shared financial commitments, including:

Mortgage repayments or rental costs
Car repayments
Credit card debts
Household/utility bills
Childcare fees

Many of these costs will fall to your partner and/or family if you were no longer around.

Would you also expect a suitable send-off? The average cost of a basic funeral is now £4,141^[1].

It's difficult to imagine that your partner and/or family could be going through a bereavement whilst also taking on a potentially avoidable financial burden.

Life insurance is an affordable and selfless way of mitigating this risk.

How much life insurance do you need?

Use this handy calculator to find out how much life insurance you may need as a newlywed. Simply enter the costs you would like your policy to cover.

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Your total cover estimate

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Let us help you find our best quotes.

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Mortgage life insurance for newlyweds

A newlywed couple getting a joint mortgage to purchase a home need to consider; if either partner were to pass away, would the surviving partner be able to afford the repayments?

From tax year 2023 to 2024, the average rental cost in the UK increased by 8.6% to £1,301 a month^[2], and the average outstanding mortgage debt in the UK is currently £132,378^[3].

Newlyweds may consider mortgage life insurance to help protect their partner from crippling mortgage debt or to prevent them from falling behind on rental payments.

Family life insurance for newlyweds

Family life insurance may be relevant to those newlywed couples who are already proud parents or are planning to become parents.

When arranging life insurance, newlyweds need to take into account the cost of raising a child and how one parent would cope on their own.

According to research from Child Poverty Action Group, the average cost of raising a child to 18 years in the UK is £166,000^[4].

A life insurance pay out could help towards funding additional childcare so that the surviving parent can return to work if they needed to.

The average cost of full-time childcare in the UK is £302.10 per week for a single child^[5].

It's also possible that a family could be affected by the loss of income if one partner passed away, particularly if they were the main earner.

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The cost of life insurance for newlyweds

Life insurance premiums are calculated based on the following factors:

Age
Health
Smoking status
Policy type (joint or single, decreasing or level)
Policy term length
Sum assured (pay out amount)

The cost of your policy can also be affected if you and/or your partner have:

Pre-existing medical conditions
Dangerous occupations
Are sports professionals
Partake in dangerous hobbies

If any of the above are relevant to you, then you may be considered high risk by the insurer.

If you've been declined in the past why not contact our dedicated impaired life insurance team to see if they can help you secure suitable cover?

How much life insurance do newlyweds need?

To calculate how much life insurance you'll need, the following should be considered:

Outstanding mortgage balance
Any debt in your name
Funeral costs
Loss of income
Additional childcare costs
Age of your dependants
Day-to-day living expenses

By adding up these costs you'll be able to establish a suitable cover amount to protect both you and your partner.

The best life insurance for newlyweds

For many newlyweds, the best life insurance is the most affordable policy.

In this case, decreasing term life insurance may be suitable. However, it's important to make sure the policy also meets your needs.

For this type of policy, the pay out amount decreases over time, so the further into your policy you live, the smaller the pay out your beneficiaries will receive.

Decreasing term cover is commonly used to help cover a repayment mortgage and/or mutual debts that may decrease over time.

Cover can be arranged for up to £1,000,000, where applicable.

Level term life Insurance

If planning on starting a family, a newlywed couple may consider choosing level term cover, where the sum assured remains fixed.

Your beneficiaries will receive the full sum assured regardless of whether you pass away at the start or the end of the policy.

Again, cover can be arranged up to £1,000,000 if applicable.

Level term is often used to help cover an interest-only mortgage or other fixed costs such as inheritance, daily living costs and a funeral.

Either decreasing or level term cover can be taken out as a joint or single policy.

Both level and decreasing options are also term-based, meaning that if you outlive the policy no pay out is issued.

Family income benefit

Family income benefit may not grab your attention as a newlywed, however, it's worth understanding this option and how it may be beneficial in years to come.

Family income benefit can be described as an income replacement.

It provides your family with on-going monthly tax-free payments for a specified length of time, (if you were to pass away during the term).

This type of cover can offer payments of up to £5,000 a month; a manageable sum that can be used to help cover daily living costs and mortgage repayments.

Newlyweds who have children and who are looking for more affordable life insurance, that's easy to manage could benefit from this option.

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Whole of life insurance

Older newlywed couples, who are in good health may benefit from whole of life insurance.

It's important you're in good health though, as unlike over 50 plans you're asked medical questions during the application.

The cover lasts for life, with a guaranteed pay out in the event of your death.

Because you have to pay in premiums for as long as you live, your age is important as it's possible to pay more into the policy than it'll pay out.

Whole of life premiums can be significantly higher than other types of cover as a pay out is guaranteed.

The sum assured for whole life cover can be up to £1,000,000, so considerably more than the over 50s plan.

Over 50s life insurance

An over 50s plan is the only form of life insurance that doesn't require any medical information during the application process and acceptance is guaranteed if you’re a UK resident aged 50 – 85.

Premiums are based on your age, smoking status and sum assured. Information about your health isn't required and, depending on your age, it’s possible to take out up to £20,000 of cover.

While you can’t take out joint over 50s life insurance, it could be an ideal option if you’ve both struggled to secure standard cover previously due to pre-existing conditions.

If you're a newlywed couple who have married later in life, you may already have two individual life insurance policies.

You may want to review these to ensure enough coverage is in place to meet your change in circumstances.

Joint life insurance for newlyweds

Joint life insurance, or life insurance for couples, may seem like an obvious option for newlyweds.

On average a joint policy is approximately 30% cheaper compared with two single policies.

However, with a joint policy, only one pay out is issued, usually on the first death.

The cover then expires, leaving the remaining partner without cover.

Whilst taking out two single policies is a more expensive option, it provides two separate payouts.

Special events clause

Life insurance policies can usually be adapted to reflect a change in your personal circumstances.

This is when the sum assured can be increased without the need for additional underwriting, saving you time.

The special event option is ideal if planning to grow the family or move to a larger home.

Although there's also the option of changing your policy or taking out an additional policy to cover additional costs.

Please note, this special events clause option isn't available from all insurers/with all policies.

Life insurance for professional newlyweds

It's not uncommon nowadays for couples to focus on their careers, before marriage or starting a family.

The average age of opposite-sex marriage in 2019 was 34.3 for men and 32.3 for women, a trend that has continued to rise since the 1970s^[6].

Couples that are both in employment may receive death in service benefit from their employer or other similar forms of cover.

A death in service pay out is usually a multiple of your annual salary, (approximately three times).

This can be a valuable benefit; however, it can't be taken with you if you change employers or take a break from work.

Your death in service benefit can be taken into account when deciding on the level of life insurance coverage you need.

If you're self-employed then you wouldn't receive this benefit and you would be relying fully on your life insurance.

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Critical illness cover

It may be helpful to be aware of critical illness cover when deciding on newlywed life insurance.

Critical illness is available as an add-on to your life insurance policy at an additional cost, or as a standalone policy (from some providers).

It can provide a pay out if you're diagnosed with a serious, yet not life-threatening, illness.

Critical illness cover could be used to help cover the following if you were to fall ill:

Private medical treatment
Home adaptions
Loss of income

Critical illness cover can be taken out alongside a joint or single policy usually up until the age of 70, although eligibility/age exclusions will vary between providers.

Terminal illness cover

Every term life insurance policy we sell through Reassured comes with terminal illness cover as standard.

This means that if you're diagnosed with less than 12 months to live, an early pay out can be made.

You can use this early pay out as you wish; getting your finances in order for peace of mind, to help fund your funeral or provide an inheritance.

For more information on how critical and terminal illness cover differs, see our dedicated terminal illness vs critical illness article.

Can you take out a life insurance policy on your spouse?

It's possible to arrange and pay for life insurance on behalf of your spouse, however, they must be aware of the cover.

They will be required to provide medical information, partake in the application and the policy remains under their control should they wish to cancel or change it in the future.

The life insurance policy can take the form of a single policy (in their name alone) or as a joint policy with yourself.

If the policy is written into trust, this will also be at the discretion of your spouse and they will have control over the trustees.

Write your life insurance in trust, (avoid/minimise 40% inheritance tax)

There may be the option to write your life insurance in trust. This means nominating someone you trust to take charge of your life insurance after you're gone.

Writing your life insurance in trust has the following benefits:

Avoiding (or minimising) 40% inheritance tax (meaning a larger pay out)
Avoiding the probate process (for a faster pay out)
Greater control of your policy

As a newlywed couple, you may decide to write your single or joint policies in trust.

At Reassured we provide a free to use trust writing service on the majority of the policies we arrange, should you require support.

Compare life insurance quotes for newlyweds

It's important to compare quotes when searching for life insurance as it could help you save money on your premiums.

Reassured can help you compare quotes from a range of different insurers at no cost to you.

If you're a newly married couple, looking to take out life insurance, or would just like to learn more, our dedicated team are here to help.

As well as compare quotes, we can also help you complete your application and write your policy in trust.

We exist to save you valuable time and money.

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Sources:

[1] https://www.sunlife.co.uk/funeral-costs/

[2] https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/privaterentandhousepricesuk/june2024

[3] https://www.finder.com/uk/mortgage-statistics

[4] https://cpag.org.uk/policy-and-research/findings-our-projects/cost-child-reports

[5] https://www.daynurseries.co.uk/advice/childcare-costs-how-much-do-you-pay-in-the-uk

[6] https://www.ons.gov.uk/peoplepopulationandcommunity/birthsdeathsandmarriages/marriagecohabitationandcivilpartnerships/bulletins/marriagesinenglandandwalesprovisional/2018