Do Newly-Weds Need Life Insurance?

Soon after the wedding day, somebody will approach you with an offer for life insurance (your bank or companies that hawk change-of-name records from the state). You'll hear how important it is to "protect" your loved ones, and scary scenarios will be presented, with an emphasis to buy coverage right away. Nobody really sits down to discuss with you whether you really need life insurance at all, or which kind will work for you best. If they did, they might find out that you don't really need it, kind of like where we find ourselves at this juncture.

Newly-weds (less than 24 months married) don't need life insurance if they (1) both have jobs/incomes, (2) have no children, (3) have no debt, including a mortgage, (4) have a fully-funded emergency fund, (5) are young and healthy enough, (6) have low-risk livelihoods, and (7) have no other shared long-term financial obligations. Note the emphasis on "need", because some agents sell insurance as a necessity, which it isn't. The key: if one spouse could comfortably live on their own income, it is not needed. It is important to understand term life insurance as "income replacement" and be realistic about what additional help you would need were your spouse to pass away. As newly-weds in said situation, we figure the only costs we should care about in that sense are funeral costs and perhaps any related hospital bills. As it is, our emergency fund would help with that. This highlights another reason why you should have a generous emergency fund even before you consider the luxury of life insurance.

Every marriage is different though, so assess yours carefully. The 7 criteria above will be a good start. The sooner you buy insurance, the lower the premium you are likely to secure because of your age, health, and prevailing market conditions (insurability). Your insurance agent will make sure you know this fact, but don't panic: everyone will die someday (Heb.9:27), and what matters more than anything is where your soul is headed at that point. Actually I find it a little ridiculous that the life insurance calculation is basically a bet that you will both outlive your policy (or they wouldn't offer to insure you if it were more likely that you'd die within term). It makes business sense that way for the insurer. But just be objective about it, understand it, ask a ton of questions, then choose a policy that is right for you.

That said, it makes good financial sense to considered it and buy a policy no later than your second anniversary. Use the time to stabilize and understand your particular financial dynamic, build a healthy emergency fund, and prepare yourself to tackle the hard topic of death and beneficiaries. It need not be seriously emotional or morbid, but sensible.

A Political Stake

Considering the upcoming US presidential elections, everyone has a political opinion about today's national issues and which presidential candidate would be best suited to resolve them. We are no exception: our home is a two-party system, representing the Republican party and the independents, so our political opinions come from those perspectives. Whoever said marriage was supposed to be an "equally-yoked" union didn't consider that politics can be an integral part of a marriage: a Republican can marry a Democrat and they will thrive.

I am more politically active than my wife, participating in various debates, political forums on various issues, and volunteering in local politics. I am interested in how government works, and how the experiment of democracy manifests itself. I am also interested in social justice issues and the exercise of morality in society (as informed by my Christian faith). In fact, I think that morality and social justice precede politics, which is why I would more likely vote on the issues than the hardline party positions.

In another life, I'd do well as a political analyst or fact checker. I listen to both liberal and conservative opinion but make up my mind based on research, facts, and general reality. Wherever the apparent truth leads is where I establish my position, no matter which political party originated it. My politics are not too tightly coupled to my religion per se, leaving me room to consider positions that perhaps many fellow Christians would frown own. In fact, the only hate mail I've ever received came from well-meaning conservative Christians against certain political opinions I espoused. I've surprisingly lost friends over politics. I find that some people are so deep into their party or politics that they fail to recognize when change is needed or know when they might be wrong about certain issues. I call that "political slavery", when you do not feel free to even hear out dissenting opinion or understand those that may not agree with you, to the extent that you harbor hate towards them and propagate lies about them. I'd rather the truth be known, undefiled, and let there be a variety of political opinion and debate about it.

So as I embark on a fresh review of current political issues and consider the presidential candidates' positions, I am burdened to find truth in the rhetoric, consider implications of positions or policy proposals, and figure out how I will be impacted or benefit from them. It is prime to be informed before you voice an opinion. In short order, I'll also discover how politics works inside a family: is it necessary that you agree on everything politically, or is it alright (and even desired) that there be differing perspectives in that regard? As long as you are not politically enslaved, healthy debate or current affairs and freedom of political expression (without imposing on your spouse) should be a good thing.