Simplifying Life Insurance in India
10 Expert Financial Advice for Newly Married Couples

10 Expert Financial Tips for Newly Married Couples
1. Plan Your Aspirations Mutually
Financial goals are not the same for all individuals. You and your spouse may have different sets of aspirations in life in terms of child education, business, family planning, etc. This is why you must communicate and mutually decide how to approach fulfilling those dreams. It will benefit you in setting your budget and doing financial planning.2. Establish Your Budget
One of the most important pieces of financial advice for newly married couples would be to plan a budget. It will help you keep your expenditure within your combined earning capacity. The budget is a systematic plan for expenses that you must bear to sustain the household and lifestyle requirements. You should think about where and how you should spend your money and save your excess earnings.3. Decide on Financial Responsibilities
Another important piece of financial advice for newly married couples would be on splitting responsibilities with each other, especially when both of you are earning members. You need to mutually decide who will take care of EMIs, investments, household expenses and other similar financial commitments. This way, you can divide and reduce the total financial pressure from each other and concentrate on other necessary things in life.4. Build an Emergency Fund
Sound financial planning for newlyweds should also stress the necessity of building an emergency fund. This is because emergencies like health issues and loss of employment are unpredictable. You can encounter difficulties in sailing through those difficult times without adequate finance. The emergency fund will help tackle those challenges without facing much stress. In fact, you will not have to borrow and subsequently engage in repayment to manage your basic household requirements.5. Start Investing Part of Income
You and your spouse can build and grow funds for the future through systematic investment in different instruments like mutual funds, stocks, bank deposits, etc. Before the investment, however, you need to mutually decide how much you can put towards your funds, considering your income and budget.
You also should mutually decide the type of funds you will put your money into to let it grow according to your capacity for risk and reward. For example, investing in the stock market can be riskier than mutual funds or bonds. However, you can also earn larger returns quicker from the stock market.
6. Create Fund for Child Education
Another essential piece of financial advice for young married couples would be to start planning and saving for child education from an early period. You can build a dedicated fund for this and start putting your money into it methodically. With little but gradual investment from an early period, it will not be much difficult for you to raise the required capital. Additionally, you can also get the maximum benefit of compounding interest by investing for a prolonged period.7. Buy Health Insurance Plans
A health insurance policy can help you keep your emergency funds unaffected during medical emergencies. It gives you financial coverage against your medical expenses up to the predetermined sum insured value.
You can also start your cashless treatment from partnered hospitals of your insurance company. It will help you secure treatment facilities without paying up front. Your insurer will pay all your medical bills directly to the hospital. All these benefits make it essential that you get yourself and your spouse covered under health insurance policies.
8. Get a Life Insurance Coverage
Purchasing life insurance is also essential financial advice for newly married couples, especially if one spouse is a non-professional. It will allow both of you to obtain a life cover. In case of your premature demise, your spouse will get the predetermined lump sum as a death benefit or vice versa. However, for this, you need to make them your beneficiary for the policy.
Furthermore, it also comes with a maturity benefit. You will get the lump sum maturity amount if you survive the policy term. You can see this maturity amount as your fund to sustain lifestyle requirements in your old age.
9. Create Joint Account
A joint account can help both you and your spouse manage your savings effortlessly. Both of you will have more and less equal access to all the services linked with the savings account. In case of financial requirements, you, as well as your spouse, will be able to withdraw funds, deposit money, make online transactions, etc. In fact, you can also link your loans with this joint account if needed.10. Keep Money in Bank Accounts
One more financial advice for newly married couples would be to keep as little hard cash at home as possible. Instead, you need to put that in your savings account. This will help you resist your impulses to spend more than necessary. It will also reduce the chances of losing your hard-earned money. Furthermore, you can utilise your cash stored in the bank account for several purposes, including paying bills, transacting money for online purchases, etc.
By acting on the stated financial advice for newly married couples, you can fulfil your financial responsibilities towards your new family. You can develop proper financial discipline for your family to secure your future requirements without compromising on your current lifestyles.
FAQs About Financial Advice For Newly Married Couples
How to understand how much I need for my child's higher education?
Can I hire a financial advisor to manage and grow wealth?
How to plan financial goals after marriage?
The following actionable ways by which financial goals can be set after marriage for a new couple:
- Setting a plan for retirement savings
- Setting a financial plan for children
- Making wise financial decisions
- Putting your partner first
How to handle finances in a new marriage?
To handle finances seamless as a newly-wed couple, you can do either of the following:
- Merge your bank accounts and share all income and expenses
- Create a joint account for all shared expenses while also maintaining separate accounts
- Arrive at a mutual decision and keep all accounts separate and split every bill
Other Important Articles about Financial Planning for Couples
Important Articles About Financial Planing
Disclaimer
- This is an informative article provided on 'as is' basis for awareness purpose only and not intended as a professional advice. The content of the article is derived from various open sources across the Internet. Digit Life Insurance is not promoting or recommending any aspect in the article or its correctness. Please verify the information and your requirement before taking any decisions.
- All the figures reflected in the article are for illustrative purposes. The premium for Coverage that one buys depends on various factors including customer requirements, eligibility, age, demography, insurance provider, product, coverage amount, term and other factors
- Tax Benefits, if applicable depend on the Tax Regime opted by the individual and the applicable tax provision. Please consult your Tax consultant before making any decision.
Latest News
14-03-2025
Life Insurers See 5.7% Premium Growth: April-Feb Report
In February, life-insurance companies saw an 11.6% drop in new business premiums (NBP) due to a 22% decline in premiums from state-owned LIC. However, from April to February FY25, overall premiums grew by 5.71% to Rs 3.35 trillion. LIC's premiums increased by 1.90% to Rs 1.90 trillion, while private insurers saw an 11.11% growth, reaching Rs 1.46 trillion.
04-03-2025
Life Insurance Agents Surge: 3 Million in 2025
Volkswagen India will launch the Golf GTI and Tiguan R-Line by the end of Q2 2025. The Tiguan R-Line, unveiled in 2023, features aggressive styling, larger 19-inch alloy wheels, and LED light bars. Inside, it boasts a 12.9-inch touchscreen, 10.3-inch digital instrument console, and ambient lighting. Powered by a 2.0-litre turbo-petrol engine with 261bhp and 400Nm, it offers six-speed manual and seven-speed DCT automatic transmissions.
19-02-2025
Life Insurance: FDI Boosts Growth Potential | 2025 Update
The Indian life insurance sector is set to grow significantly with the government's decision to raise the Foreign Direct Investment (FDI) limit to 100%. This move will provide the necessary capital for industry expansion, allowing insurers to increase mortality coverage and market penetration. Private insurers have already seen a notable rise in retail sum assured, outpacing new business premiums. The shift to unit-linked investment plans (ULIPs) may pressure margins, but increased capital inflows will help meet the growing demand for coverage.
12-02-2025
Budget 2025 Brings Changes to ULIP Taxation
The Union Budget 2025 has redefined the taxation landscape for Unit Linked Insurance Policies (ULIPs). Starting April 1, 2026, ULIPs with annual premiums exceeding ₹2.5 lakh will be classified as capital assets, subjecting their gains to capital gains tax rather than treating them as income from other sources. This amendment aims to align ULIP taxation with other equity-oriented investments, ensuring a uniform tax treatment across financial products. Policyholders are advised to reassess their investment strategies in light of these changes to optimize their tax liabilities.
02-02-2025
New Tax Rules for Life Insurance Premium
Starting April 1, new income tax rules will impact ULIPs and other life insurance policies with premims over 5 lakh will no longer enjoy tax-free maturity benefits under Section 10(10D). This move aims to align insurance with genuine risk coverage rather than high ticket investments. Smart investors might now explore alternate tax-saving strategies!
12-12-2024
Policyholders Now Get Increased Surrender Value
The new business premium of life insurers was Rs 377,960 crore in the fiscal year ending March 2024. Starting October 1, policyholders will receive higher refunds if they discontinue their policies, as per new IRDAI regulations. This change may lead to increased premiums, impacting insurers' margins. Policies must comply with the new surrender value norms by September 30. Despite initial opposition, the changes aim to improve customer benefits and are expected to positively impact the insurance industry over time.
10-12-2024
Premium Costs for Life Insurance Decrease in November
In November 2024, new business premiums (NBP) of life insurance companies fell by 4.5% year on year (YoY) to Rs 25,306.56 crore, mainly due to a 27.17% drop in LIC's premiums. However, private insurers saw a 30.84% YoY growth in NBP to Rs 13,555.45 crore. Revised surrender value norms, effective October 1, led to enhanced special surrender values for policyholders. Despite the overall decline, private sector growth improved, cushioning the fall. The life insurance industry saw a 15.7% YoY growth in NBP during April–November 2024.
18-11-2024
Govt's FDI Plan: New Insurance Rules
The government plans to allow 100% foreign ownership of insurance businesses, attracting international companies. This proposed legislation also lets individual insurance agents offer policies from multiple companies. The changes are part of the Insurance Amendment Bill, set for introduction in the winter session of Parliament. These measures aim to increase insurance penetration, currently at 4%, by allowing more companies to underwrite policies and enabling agents to sell various covers.
08-11-2024
Record Growth: Life Insurers Boost Premiums 18.56%
The Life Insurance Council reported a 13.16% year-over-year growth in October 2024 New Business Premiums (NBPs), reaching ₹30347.6 Crs, up from ₹26819.01 Crs in October 2023. Year-to-date (YTD) collections also increased by 18.56%, from ₹185195.81 Crs to ₹219561.64 Crs. This growth is attributed to life insurers' focus on first-time buyers. Despite this, new policy issuances dropped by 41.6%. Individual single premiums grew by 8.60%, with overall YTD growth at 14.16%.
01-10-2024
Higher Refunds for Life Insurance Policyholders from October 1, 2024
Starting October 1, 2024, policyholders who surrender their traditional endowment life insurance policies will receive higher refunds due to new rules from India's Insurance Regulatory and Development Authority (Irdai). The exceptional surrender value (SSV) will be increased, providing more flexibility and liquidity. This change benefits those exiting policies early, offering refunds even after the first year. Insurers must now include detailed surrender values in policy illustrations, enhancing transparency for policyholders.
Read More