Testimonial: Being A Couple
Brian & Jill Mackenzie
Brian and Jill are a married couple in their mid-thirties. They pay $1,350 in monthly rent and have a combined yearly income of $76,000. They contribute $400 into their shared savings account every month and have accumulated over $18,000. Their combined debts include a $7,000 school loan and a $19,000 car loan. They have two cars and are able to support an active lifestyle, with some extra money left over every month.
They plan to use their savings as a down payment on a house and want to have children after they've settled into their new place.
Brian: Jill and I had been together for a few years before getting married. In many ways it wasn't a big lifestyle change. But being married has certainly encouraged us to put real plans in place for the future. At this stage in our lives, our responsibilities aren't huge — but we want to be sure that it wouldn't be a financial nightmare if something happened to Jill or me.
Jill: When we did some calculations, we discovered quickly that, if one of us died without life insurance, things would get very difficult for the other person.
My income, for example, would barely cover the rent and living expenses. There is no way that I could pay our loans without Brian's help.
Brian: So we definitely knew we should have some life insurance. We calculated that I should buy at least $250,000 of coverage in case I died. Jill needed to get $175,000 of coverage to protect me.
But then we had to decide which type of life insurance was best for us — whole life insurance? term life insurance? There are a lot of options out there! And many of them can be quite complicated.
After doing some research online, we decided to get term life insurance coverage for each of us. It was the most flexible and affordable option at this stage in our lives. It meant that we could start with small coverage amounts and revisit them when we finally buy our house and start our family.
Jill: I can't even imagine how I would feel losing Brian. Would I even be able to work? I don't know. But I do know that planning for the worst has helped me feel a little more secure about the future.