Business Insider spoke with family and divorce attorney Kimberly Cook, who listed issues for a safe financial life for the new family.
Do you bring loans to marriage?
If one of the newlyweds has student loans or a mortgage, that person needs to buy life insurance. This kind of agreements will protect the family from possible hardships.
How will we take care of the children?
It is necessary to decide on how to help future children before the wedding.
Joint life insurance or separate policies?
Joint life insurance policies (for the first or second death) are usually issued for married couples (for example, joint annuities); there are two insured persons in such an agreement.
The first death joint life insurance policy stipulates payments upon the death of one of two insured persons. Joint life insurance on first death and family income insurance are commonly used to protect family interests, and first death clauses are widely used in home purchase agreements.
A joint lives policy on second death (sometimes also called a last survivor insurance policy) is often used as a preventative measure against high inheritance taxes and sometimes as an investment.
What will happen to the policy if the family breaks up?
Some states require life insurance as alimony for child or spouse support.
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