How To Get Life Insurance For Your Fiancé Or Fiancée Before Marriage

Life insurance is a contract between you and an insurance company that promises to pay a sum of money to your designated beneficiary (or beneficiaries) in the event of your death. In exchange, you pay a monthly or annual premium to the insurance company for the duration of the policy.

Getting life insurance before marriage may seem like a morbid or unnecessary thing to do, but it can actually be a smart and loving decision. Here are some of the benefits of getting life insurance for your fiancé or fiancée before tying the knot:

• You can lock in lower rates while you are young and healthy. The cost of life insurance increases as you age and develop health issues, so getting a policy sooner rather than later can save you money in the long run.
• You can cover any shared debts or expenses that you have with your partner, such as a mortgage, car loan, credit card debt, etc. If one of you passes away unexpectedly, the surviving partner will not have to bear the burden of paying off these debts alone or risk losing your home or car.
• You can plan for your future together and protect your family’s financial security. If you intend to have children someday, getting life insurance before marriage can ensure that they will have enough money for their education, health care, and other needs if one of you dies prematurely. You can also use life insurance to leave a legacy for your loved ones or support a cause that you care about.

If you are convinced that getting life insurance for your fiancé or fiancée is a good idea, you may be wondering how to go about it. In this article, we will guide you through the process of getting life insurance for your fiancé or fiancée and why you should do it.

How to choose the right type of life insurance

The first step in getting life insurance for your fiancé or fiancée is to choose the right type of policy for your situation. There are two main types of life insurance: term and permanent.

Term life insurance provides coverage for a specific period of time, usually between 10 and 30 years. If you die within the term, your beneficiary will receive the death benefit. If you outlive the term, your policy will expire and you will have to renew it or buy a new one. Term life insurance is typically cheaper than permanent life insurance and is suitable for people who need temporary protection or have a limited budget.

Permanent life insurance provides coverage for your entire life, as long as you pay the premiums. It also has a cash value component that grows over time and can be accessed through loans or withdrawals. Permanent life insurance is more expensive than term life insurance and is suitable for people who want lifelong protection or have complex financial needs.

There are pros and cons to each type of life insurance, so you should weigh them carefully before making a decision. Here are some factors to consider:

• Cost: Term life insurance is more affordable than permanent life insurance, especially if you are young and healthy. However, term life insurance premiums may increase when you renew your policy or buy a new one later in life. Permanent life insurance premiums are higher but remain level throughout your lifetime.
• Coverage: Term life insurance provides coverage only for a specific period of time, which may or may not match your needs. If you outlive your term, you will lose your coverage and may have difficulty finding a new policy if your health deteriorates. Permanent life insurance provides coverage for your entire life, regardless of how long you live or what happens to your health.
• Duration: Term life insurance allows you to choose how long you want to be covered, which can be useful if you have a clear end date for your financial obligations, such as paying off a mortgage or sending your kids to college. Permanent life insurance does not have an expiration date, which can be useful if you want to leave a legacy for your heirs or support a charity after your death.
• Cash value: Term life insurance does not have any cash value component, which means that you cannot access any money from your policy while you are alive. Permanent life insurance has a cash value component that grows over time and can be accessed through loans or withdrawals. However, accessing your cash value may reduce your death benefit or incur fees or taxes.

To determine how much coverage you need and for how long, you should consider your current and future income, expenses, debts, assets, goals, and dependents. A general rule of thumb is to multiply your annual income by 10 or 15, but you may need more or less depending on your situation. You should also review your coverage needs regularly and adjust them as your circumstances change.

How to find the best life insurance policy for your fiancé or fiancée

The next step in getting life insurance for your fiancé or fiancée is to find the best policy and provider for your needs. There are many factors that affect the price and availability of life insurance, such as your age, health, lifestyle, occupation, etc. Therefore, it is important to compare different policies and providers before buying one.

One of the easiest ways to compare life insurance policies and providers is to use online tools that allow you to get instant quotes from multiple companies based on your personal information and preferences. You can also read reviews and ratings from other customers and experts to get an idea of the quality and reputation of each company.

Some of the reputable and affordable life insurance companies that offer policies for engaged couples are:

• Lemonade: Lemonade is a digital insurance company that uses artificial intelligence and behavioral economics to provide fast and easy life insurance. You can get a term life insurance policy from Lemonade in minutes, without any medical exams or paperwork. You can also customize your coverage amount, term length, and beneficiary online. Lemonade’s term life insurance policies start from $9 per month and are backed by some of the largest reinsurers in the world.
• Nationwide: Nationwide is one of the largest and most trusted insurance companies in the US, with over 90 years of experience and an A+ rating from A.M. Best. You can get a term or permanent life insurance policy from Nationwide, with flexible options and features to suit your needs. You can also access a range of financial planning and wellness resources from Nationwide, such as calculators, articles, videos, etc.
• Guardian: Guardian is a mutual insurance company that has been providing life insurance since 1860 and has an A++ rating from A.M. Best. You can get a term or permanent life insurance policy from Guardian, with competitive rates and benefits. You can also take advantage of Guardian’s Living Benefits Rider, which allows you to access a portion of your death benefit if you become terminally ill or chronically ill.

To apply for a life insurance policy, you will need to provide some basic information about yourself and your fiancé or fiancée, such as your names, dates of birth, genders, addresses, phone numbers, email addresses, etc. You will also need to answer some questions about your health history, lifestyle habits, family history, etc. Depending on the type and amount of coverage you want, you may also need to undergo a medical exam or provide additional documents, such as income proof, bank statements, etc.

How to designate your fiancé or fiancée as your beneficiary

The third step in getting life insurance for your fiancé or fiancée is to designate them as your beneficiary. A beneficiary is the person or entity that will receive the death benefit from your life insurance policy when you die. Naming a beneficiary is important because it ensures that your money goes to the person or cause that you want.

You can name anyone as your beneficiary, such as your spouse, child, parent, sibling, friend, charity, etc. However, naming your fiancé or fiancée as your beneficiary before marriage may have some legal implications that you should be aware of.

First of all, you should know that naming your fiancé or fiancée as your beneficiary does not automatically make them entitled to inherit any other assets from you if you die without a will. In most states, only spouses and blood relatives have a legal right to inherit from an intestate estate (an estate without a will). Therefore, if you want to leave anything else to your fiancé or fiancée besides the death benefit from your life insurance policy, you should make a will that specifies your wishes.

Secondly, you should know that naming your fiancé or fiancée as your beneficiary may affect how the death benefit is taxed. In general, life insurance proceeds are not subject to income tax for the beneficiary. However, they may be subject to estate tax if they are included in the value of your estate. The federal estate tax exemption for 2021 is $11.7 million per person, which means that only estates worth more than that amount are subject to estate tax. However, some states have lower estate tax exemptions or inheritance taxes that may apply to smaller estates.

One way to avoid estate tax on life insurance proceeds is to use an irrevocable life insurance trust (ILIT). An ILIT is a special type of trust that owns and controls your life insurance policy instead of you. By transferring ownership of your policy to an ILIT, you remove it from your estate and reduce its value for estate tax purposes. However, creating and maintaining an ILIT can be complex and costly, so you should consult a professional before doing so.

Thirdly, you should know that naming your fiancé or fiancée as your beneficiary may expose them to the risk of creditors or lawsuits. If you have any outstanding debts or liabilities, your creditors may try to claim a portion of your death benefit from your beneficiary. Similarly, if your beneficiary is involved in any legal disputes or judgments, their creditors may try to seize their assets, including your death benefit. To protect your beneficiary from these risks, you can use a spendthrift trust or a discretionary trust. A spendthrift trust is a type of trust that limits the beneficiary’s access and control over the trust assets and prevents their creditors from reaching them. A discretionary trust is a type of trust that gives the trustee full discretion over how and when to distribute the trust assets to the beneficiary, which also shields them from creditors.

Finally, you should know that naming your fiancé or fiancée as your beneficiary is not a permanent decision. You can change your beneficiary at any time after you buy your policy, as long as it is not irrevocable. You may want to change your beneficiary after marriage if you want to include your spouse or children in your policy. You may also want to change your beneficiary if you divorce or break up with your fiancé or fiancée, unless you have a legal obligation or agreement to keep them as your beneficiary.

To name or change your beneficiary, you will need to fill out a beneficiary designation form from your insurance company and submit it with any required documents, such as a marriage certificate, divorce decree, etc. You should also inform your beneficiary of your policy details and location, so that they can claim the death benefit when the time comes.

How to review and update your life insurance policy over time

The last step in getting life insurance for your fiancé or fiancée is to review and update your policy over time. Life insurance is not a one-time purchase that you can forget about after you buy it. It is a long-term commitment that requires regular maintenance and adjustment to suit your changing needs and circumstances.

You should review your life insurance policy at least once a year and especially after any major life events, such as marriage, divorce, birth of a child, death of a beneficiary, change of income, retirement, etc. These events may affect how much coverage you need, how long you need it for, who you want to name as your beneficiary, etc.

If you find that your current policy does not match your current needs or goals, you can adjust it accordingly. Depending on the type of policy you have, you may be able to increase or decrease your coverage amount, extend or shorten your term length, switch from term to permanent or vice versa, add or remove riders (optional features), etc.

However, some changes may require you to undergo a new underwriting process or pay additional fees or charges. Therefore, you should weigh the costs and benefits of making any changes before doing so.

If you have any questions or concerns about your policy or how to make changes to it, you should contact your insurance company or agent for assistance. They can help you understand your options and guide you through the process.

Conclusion

Getting life insurance for your fiancé or fiancée before marriage is a wise and loving decision that can protect your future together and provide peace of mind for both of you. By following the steps outlined in this article, you can choose the right type of policy, find the best provider, designate your beneficiary, and review and update your policy over time.

Don’t wait until it’s too late to get life insurance for your fiancé or fiancée. Take action today and get a quote or apply for a policy online in minutes. You will be glad you did.

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