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Life Insurance for Couples

Life insurance is about protecting those you love financially – and who’s more important than your partner? Whether or not you have kids, a policy offers peace of mind in case the worst happens.

Why Do Couples Need Life Insurance?

Wondering if you need to get insured? The decision comes down to whether your partner – or anyone else, for that matter – would be worse off financially if you died. Here are some of the biggest reasons to get coverage as a couple.

To maintain their standard of life: Settling down with someone often means taking on bigger shared expenses, like that nice apartment or a new car. A life insurance policy can help cover growing costs, so your spouse won’t lose their quality of life. After you die, your partner will receive a cash payout to help with day-to-day expenses, your funeral costs, and any other expenses or debts. Coverage is especially important if you have kids together.
Cover debts: Debt can take a big chunk out of any savings you pass along to your partner. In addition, co-signed loans, like a mortgage or car payment, might fall on them after you’re gone. Some states also have community property laws, which means your partner could be responsible for any leftover credit card debt. Life insurance policy payouts help ensure that surviving spouses aren’t overwhelmed by debt by providing a financial cushion.
To plan for the future: If you know you want a family and a house someday, it might make sense for you to start planning now. The younger you are, the cheaper your life insurance will generally be. Insurance rates can increase by up to 8-10% a year. Health is an important factor as well. Certain medical conditions can increase your rates or even prevent you from qualifying for coverage. Choosing a policy sooner can save your family a lot of difficulties later.

Choosing Life Insurance as a Couple

Even though life insurance helps you plan for your shared financial future, it’s most common to buy policies individually. Some of the most common options include:

Term life insurance: This is the most affordable type of life insurance and covers you for a set period of time, usually between 10 and 30 years. Term life insurance for married couples is often the best choice if you have financial responsibilities with a deadline, like a mortgage or kids living at home.
Permanent life insurance: This type of coverage lasts a lifetime and builds cash value, which you can use as loan collateral or for everyday expenses. Permanent insurance is typically more expensive than term life, but can be the right fit if you have lifelong financial responsibilities, such as a child with special needs.

There are also a few options for buying life insurance together as a married couple, called joint life insurance. These are typically permanent life insurance policies, which means they cost more than term life.

Second-to-die life insurance: Also called survivorship life insurance, this policy pays out after both partners have died. There’s often a long gap between the death of spouses, which means this type of policy is not ideal if you are hoping to leave an income replacement. Instead, most people will use second-to-die policies to cover estate taxes or leave a legacy for their kids.
First-to-die life insurance: As the name suggests, this type of life insurance offers a payout after the first spouse dies. The goal is to help your surviving partner pay bills, manage debt, and make up for lost income if necessary. If your partner wants to stay insured once you’ve passed away, they would need to get their own policy.

When it comes to life insurance for married couples, it’s important to consider your options carefully. Joint life can be cheaper than buying separate policies and can help you both get covered if one of you is in less-than-perfect health. If your spouse has health issues, though, your policy can end up costing more than if you had bought your own policy. Joint policies also get complicated if you separate later, so check with an agent about your options in case of divorce.

You’ve got questions. We’ve got answers.

Do my partner and I both need life insurance coverage?

In most families, it’s best for both partners to have life insurance. A policy can help cover the income of working spouses and provide money to hire someone to take care of all of the responsibilities of a stay-at-home partner.

How should we balance coverage between the two of us?

That depends on a variety of factors, like your age, income, and health. If one of you earns more, for example, you may qualify for more coverage. A life insurance agent can help you both find the right fit.

Can I take out a life insurance policy on my spouse?

Not without getting them involved. Not only do they have to provide a detailed background and health information and possibly take a medical exam, but they have to sign off on the approved policy. You’ll also typically have to prove that you would struggle financially without your partner’s income after their death in order to get approved.

In some cases, insurance companies may cover a certain amount of life insurance for your partner, even if they don’t work and aren’t bringing in any income. You would still need your spouse to be involved in the application and approval process, though.

Life insurance quotes through eFinancial

At eFinancial, our goal is to make buying life insurance as easy and affordable as possible. We offer policies from over 20 top-rated companies and our expert agents can help you shop and compare your options. We’re here to support you through every step in the process so you can find the right insurance company and get covered as quickly as possible.

Get your free, no-obligation online quote or call 800-957-9525 to talk with one of our agents.