Can a couple get life insurance together?
Most people who buy life insurance get an individual policy, which only pays a death benefit if the covered individual dies. A couple – married or otherwise – has another option: Instead of buying separate individual policies, they can buy joint life insurance.
Life Insurance for Couples: What You Need to Know
Life insurance provides security to couples and their families, ensuring the financial future of the surviving partner and any dependents, in the event of a partner’s death. While there are a few different ways to purchase life insurance for couples, knowing what policies are available, what their benefits and drawbacks are and which one will best suit your needs is essential when deciding how to cover you and your partner.
The two main types of life insurance available to couples are individual policies and joint policy. With an individual policy, each partner independently purchases a policy in their name, usually specifying the other partner as a beneficiary. This type of policy provides flexibility as each person can choose a policy with different levels of protection, tailored to their own individual medical history and financial goals.
The second option for couples, is a joint policy, where just one policy is taken out covering them both. A joint policy provides couples with a much more cost effective option and is often preferable if the two individuals have some potential financial dependents, such as children.
One of the most important things to consider when purchasing life insurance for couples is to ensure you choose the right level of cover. If you overestimate, you’ll be paying more in premiums than you need to, while if you underestimate, you could leave your partner and any dependents with inadequate financial protection. It is also important to remember your policy should be constantly reassessed, especially if there is a change in your family dynamics, such as having children or if you reach a new stage in your financial life.
A life insurance policy for couples offers security and peace of mind, not only for you, but for your partner too. Taking the time to carefully consider the level of cover and to review your policy regularly can ensure that you have the protection you and your family needs into the future.