Have you bought life insurance cover and are wondering if you can also take out a life insurance policy on your spouse? The good news is that you can!
Life insurance is a fantastic tool to help you create a financial safety net for your loved ones. In the event of your passing, be it due to accident or illness, it will pay out a lump sum to the beneficiaries of your choosing. This way, you could ensure any outstanding debts are taken care of, your children may still access a good education and your family isn’t burdened with the cost of a funeral during an already difficult time.
Getting Life Insurance For Your Spouse
If you’re the family bread winner, taking out a life insurance policy is a savvy financial choice. It also makes sense to take out a life insurance policy on your spouse, especially if they’re contributing financially to your family’s cost of living.
Still, even if your spouse wasn’t working, you’d still have an insurable interest that would legitimise their need for life cover as they still have the potential to start working if something were to happen to you. Also keep in mind that life is unpredictable and there’s no knowing who might pass away first, so it’s important to prepare for every potential scenario, especially if you have children.
What Is Insurable Interest?
In the context of life insurance, insurable interest refers to the interest one has in the life of another person. In short, the policy owner must have a valid reason for purchasing a policy on the life of another and would have to prove that it’s in their best interest for that other person to be alive. As an example, you couldn’t take out life cover on your grandparents if they don’t financially support you.
The Life Insured Gets To Choose Their Beneficiaries
Something else you should know? When you take out a life insurance policy on another person, remember that they still get to choose their beneficiaries. Just because you’re the one paying the premiums, it doesn’t mean they’re then obligated to nominate you as a beneficiary. Also, the person who’s life you’d want to insure has to give their consent before any policy can be taken out for them. This is why it’s always important to have an honest conversation with your spouse.
If you’d like to take out life insurance for your spouse, why not get a quick quote from MiWayLife today? We offer a 4-in-1 policy that includes an accelerated funeral benefit with just one monthly premium.
