Marriage and Money: 3 Conversations to Have Before Buying Insurance
Getting married or just tied the knot? Congratulations! You are stepping into one of the most beautiful and meaningful journeys of your life. Marriage is a lovely milestone filled with joy, excitement, love and countless new memories you will create together. It is the moment you begin building a family and imagining a shared future. But marriage is not only about the good parts. It also comes with lifelong commitment, patience, compromise and the resilience to face life’s many storms — emotional, practical, and yes, even financial.
While these challenges can feel overwhelming at times, they become much easier to navigate when you have the right support systems in place. Term insurance is one such powerful ally that every married couple should consider. Before you buy a term insurance policy, here are three essential money conversations you need to have with your partner.
Why do couples need term insurance?
Term insurance can be one of the most important financial tools for couples. It acts as a safety net and ensures that if something unfortunate happens to one spouse, the other is financially protected. This financial support can help the surviving partner manage ongoing expenses, repay loans and maintain stability during an emotionally difficult time.
Term insurance also brings peace of mind to both partners. Both spouses know that their financial future is secure, no matter what life brings. It comes with practical advantages too, such as high coverage at affordable premiums, annual tax benefits and tax-free payouts, which makes it a smart addition to every couple’s financial plan.
Buying a term plan is important for every couple, but before you do, it is crucial to have a few honest conversations. You and your spouse need to understand each other’s goals and responsibilities so that the plan you choose supports both of you in the future.
3 conversations a newly married couple needs to have before buying term life insurance
- Understand each other’s present and preferred lifestyle
As a newly married couple, you are still discovering who your partner is on a deeper, everyday level. Habits, routines and preferences take time to unfold, and you may not yet fully understand how each of you likes to live or how you imagine your life together in the years ahead. This is why having an open conversation about lifestyle is so important.
Your partner should know the structure of your current lifestyle. This can include your monthly expenses, the kind of food you enjoy, the restaurants you prefer, how often you like to travel, how much you typically spend on clothes, the rent you pay, your healthcare costs and other day-to-day expenses. These seemingly mundane details play a major role in determining how much money you need to maintain your standard of living.
For example, if someone spends ₹ 6 lakh a year (about ₹ 50,000 per month) on personal and household needs, that same amount would still be required even if the spouse is no longer around. And if both partners contribute to these expenses, the absence of one can place a real financial burden on the other.
Understanding each other’s lifestyle needs helps you choose a term insurance cover that truly protects the surviving spouse and ensures their life remains stable, even during tough times.
- Discuss existing debt and future financial commitments
While spouses may not always be legally responsible for each other’s loans, that does not completely shield them from the consequences. A loan, once taken, must be repaid, regardless of what happens. If the borrower passes away before clearing their dues, lenders will still look for ways to recover the outstanding amount.
For example, consider a situation where one partner has taken a home loan and, unfortunately, passes away halfway through the repayment period. In such cases, the bank will turn to the legal heir, which is often the surviving spouse, to settle the remaining loan amount, based on their share in the property. If the legal heir cannot or does not repay the loan, the lender has the right to take possession of the house and auction it to recover the dues. So, even though the surviving spouse never took the loan themselves, they could still lose their home and face significant emotional and financial stress.
This is why couples must openly discuss any existing debts, such as a home loan, car loan, personal loan or education loan. Understanding these liabilities can help you select a term insurance cover that is high enough to protect the surviving spouse. In a worst-case scenario, the insurance payout can be used to clear outstanding loans and keep the family financially secure.
It is equally important to talk about future financial commitments. If you plan to buy a house, a car or invest in a business in the next few years, these goals may require taking on loans. Planning for these today can help you choose a term insurance policy that can offer adequate protection for tomorrow. A simple tool like term insurance calculator can help you estimate how much cover you need based on your financial commitments and lifestyle needs.
- Acknowledge financial responsibilities toward each other’s parents
If you or your spouse supports your parents financially, that responsibility naturally becomes a shared one after marriage. In the event of an unfortunate loss, the surviving spouse not only loses the financial support their partner provided, but the dependent parents also lose a crucial source of stability.
This makes it essential for couples to have open conversations about their current and future responsibilities toward their parents. As everyone grows older, expenses, especially healthcare costs, tend to rise. Preparing for this stage in advance can ensure that no one is left vulnerable.
Choosing a term life insurance cover that accounts for both your lifestyle and the financial needs of dependent parents ensures that, even in the worst-case scenario, your loved ones can continue their lives without facing financial hardships.
Talk things out now
It is always best to have these conversations early so both of you can be on the same page. The more openly you share with each other, the easier it becomes to make financial decisions like buying term life insurance together.
