We make plans and decisions with our partners all the time. Some of these decisions are quite simple, like what we are going to have for dinner. However, how many times do couples discuss things like what would happen if one of them was not there?
For many people, life insurance is made to protect them, their partners, and their children financially in case something happened and they were no longer able to do that. Even though an insurance policy cannot replace your partner, life insurance can make life a little bit easier if you passed away unexpectedly.
However, you do not just need to get a life insurance policy for the sake of it. You should know a couple of things before taking this step.
Here are some of them;
Get on the Same Page Even if You’re Not Married
In a relationship, you will find one spouse is good at one thing while the other at something else. For instance, you might be good at saving while your partner is a spendthrift. Similarly, you might want to explore options with life insurance while your partner might not.
It does not matter whether you are unmarried partners seeking life insurance or even married ones, you have to be on the same page when it comes to life insurance. You should discuss the options you have and what makes each one of you happy.
You should evaluate the financial situation of the two of you. The policies you decide to get should not place you in financial turmoil. If a policy is too expensive, then look for an affordable option that leaves both of you happy.
Same or Different Companies for Couples Life Insurance
You might decide to take two different life insurance policies. In such a case, does it matter the insurance companies that you choose to work with? Should you choose the same or different insurance companies?
Well, it is always good to use the same insurance company. One of the advantages of doing this is that you will have less paperwork to deal with. Your work will be made easier and payments can be tracked easily without any problems.
However, this might not work for couples where one partner has a medical condition or is under medication. You might have to work with an insurance company whose conditions favor a person with health issues.
Individual and Joint Life Insurance
You might have heard people talking about spouse life insurance. Most of the time, they are referring to joint life insurance. However, does it make sense to get spouse life insurance or different policies for each one of you? Just like car insurance myths, it is good to know about some assumptions couples make when it comes to individual and joint life insurance.
Well, all couples need to understand the difference between individual and joint life insurance before signing up for a policy. A joint insurance policy is made for both partners in a first or second-to-die agreement. First-to-die policies pay death benefits after the death of the first partner. The surviving partner has to apply for a new policy after that.
In a second-to-die policy, the beneficiaries have to wait until both of you have passed on. This policy is not suitable for those who would like a policy to take care of the surviving partner.
Individual life insurance policies, on the other hand, do not depend on what happens to your partner. You will remain covered until the end of your term. If one of you passes away, the other partner would still be covered while your beneficiaries would get a death benefit.
Term and Whole Life Insurance Policies
There are different types of life insurance. Similarly, different couples seek life insurance for different reasons. Some of them take life insurance as part of their wealth management while others take it to protect themselves and their beneficiaries.
Those who take life insurance to protect their loved ones’ future have to compare the advantages and disadvantages of both whole life and term life insurance policies.
Whole life insurance is more expensive than term life insurance. This is one of the reasons most couples go for term life insurance. However, it is important to note that you will not be getting any money in case you outlive the policy.
With a whole life insurance policy, your beneficiaries will get a benefit no matter how long you live, as long as you have been making the monthly payments on time.
The benefits of life insurance cannot be underestimated. It is, however, important for couples to understand everything about life insurance before signing the policy or policies.