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?

Also, wouldn't you want the reassurance of knowing that your partner is able to continue living comfortably in their home?

The cost of renting a three-bedroom home is not far off £19,000 a year^[2].

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.

Worryingly, the average outstanding mortgage debt in the UK is £121,678^[3]. This is not a hardship anyone would wish upon their loved ones.

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 help you secure suitable cover.

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

In this case, the cost-effective decreasing term life insurance may be most 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 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.

The above policies all require medical information as part of the application process. An over 50s plan doesn't.

Premiums are still based on your age, smoking status and sum assured; however, information on your health isn't required to secure an over 50s plan.

In fact, it's the only form of life insurance which provides guaranteed acceptance without the need to disclose any health information.

An over 50s plan for newlyweds can be taken out between 50 - 85 years and offers a sum assured of up to £25,000.

The premiums can be relatively high, however, this type of cover is ideal for those who have struggled to secure standard cover due to their health or age.

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.

Older couples with life insurance who have remarried may take this opportunity to renew any policies from a previous relationship.

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.

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.

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

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

• Private medical treatment
• Home adaptions
• Loss of income
• Get your finances in order

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

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.