If you’re married, soon-to-be-married, or plan on getting married at some point with your lifelong partner, you’re going to want to check out life insurance policies.
Buying life insurance with your spouse introduces a new layer of complexity, compared to if you were purchasing a policy all on your own. Still, it’s a necessity if you want the both of you (and any family you’re planning on) to have a measure of financial security.
One of the greatest reasons for this is because married couples often incur more expenses than single individuals, hence, if one were to pass, the other may not be able to bear the eventual costs on just a single income. There’s also the fact that one spouse could be responsible for the other’s debts, so you’ll want to be covered in such an event.
While you’re out there looking for life insurance, be sure to keep some of the following points in mind as you weigh all of your available options.
Policy Considerations for Couples?
Since you’re shopping for life insurance with a partner, you have the option of getting separate life insurance policies or a singular policy that covers you both.
Having separate policies as a married couple is normal, mind you, and it tends to net you less expensive policies that are more uniquely focused on your individual needs. Say one of you makes more, for instance, and you want to make sure that the higher-earning partner in your relationship has a higher amount of coverage.
This doesn’t mean that joint policies are to be overlooked entirely, mind you. In cases where you want permanent coverage instead of term insurance, a joint policy might provide exactly what you’re after. You’ll need to be mindful, though, of whether you’re going to go with a first-to-die or second-to-die policy if you go the joint route.
In a first-to-die policy, your death benefit is paid once one member of the couple passes away. At that point, the policy is over and there is no further benefit upon the death of the second spouse. In a second-to-die policy, though, the death benefit pays out once both members of the couple are dead.
Which policy will work best for your needs will depend greatly on what those needs are.
If your goal is to get life insurance as a means of replacing income upon the death of you or your spouse, then separate policies, or a first-to-die joint policy is probably what you need.
If you’re planning on leaving something for your heirs, however, you may instead opt for a second-to-die policy. Be sure to keep doing your research and learn about all the potential options available to you and how they might fit you and your spouse’s circumstances.