You may remember your wedding day as if it happened yesterday or it may have been years ago when you said I do and declared to be there for your partner for better or for worse.
Having life insurance in place is one means of how you can protect your spouse when you are no longer around. It can also give you peace of mind knowing that they will be taken care of when you are no longer around. But how do you go about taking out a cover that will cover your partner? Here is what you need to know.
Why you need life insurance as a couple?
The last thing you want to imagine is life without your significant other. Losing a partner is always difficult to deal with. Dealing with the financial implications can make it harder. Therefore, having life insurance in place can give you and your partner peace of mind knowing that you are financially covered.
Your partner can use the pay-out to handle funeral expenses, paying off the bond, outstanding debt, as well as being a financial safety net for them to take care of day to day living expenses. Taking out a policy while you are still young can be beneficial for you financially since the premiums are cheaper. Premiums become more expensive the older you become due to the health risks that come with ageing.
Can we be covered under one policy?
Most life insurance policies cover the policyholder, i.e the person who has taken out the policy, but you can list your partner as the beneficiary. What this means is that you can take out a policy on your own life, but the pay-out will be received by your partner as the listed beneficiary.
It is advisable that both you and your partner have a life insurance policy in place and in that way, you can list each other as beneficiaries to ensure that you are both covered.
Remember to read the terms and conditions of your policy as some insurers only allow you to add your spouse, parents, and new-born children within 6 months of marriage, birth or adoption. If you already had children before getting married, it is vital to add them at the time of taking out a policy to cover them. Children must be younger than 26 years old at the policy inception to qualify.
Important things to consider when taking out a policy