Imagining a life where your partner is no longer around, along with the financial responsibility that comes with their absence Is something that any couple wouldn't want to imagine.
However, having financial safety nets in place in the form of life cover can give you peace of mind knowing that your spouse is protected no matter what. But will your spouse become an automatic beneficiary of your policy? Here is what you need to know.
They will not automatically be a beneficiary
You may have a life insurance policy in your name and even made use of a life insurance calculator to see how much cover is enough cover for you, but this will not mean that your spouse becomes an automatic beneficiary.
A beneficiary is someone who you select to receive the payout from your policy. A policyholder has the option to add and remove beneficiaries as they see fit to make sure that the right people receive the payout. This means that a spouse can choose to add their partner or leave them out as a beneficiary.
They will not automatically receive the payout once their spouse has died. As long as they are not listed as a beneficiary they will not be able to place a claim on the payout. Therefore, it's crucial to list and keep your beneficiary list up to date to make sure that insurers know who to give the payout too.
How soon should you add your spouse?
It is possible to always come back at a later stage to add your spouse. You may be engaged and then get married without having listed them on an existing policy, but as soon as you do get married, add them as a beneficiary. Choosing to both have a policy where you list each other as a beneficiary can give you extra protection in case anything happens to either one of you. It will give you a financial safety net for you to fall back on no matter what happens. Remember that your policy is meant to grow with you. Therefore, you can always go back to make any changes at a later stage when you need to.
What happens to a policy should we get divorced?
Life is unpredictable, and as much as you may not plan on getting divorced, things can change. Whatever the reason may be, your policy is created to adapt to all types of situations.
This means you can easily add or remove beneficiaries from a life policy. Should you have been listed as a beneficiary under your spouse’s policy without your own policy, you can always opt to take out a policy of your own. However, keep in mind that the older you get the more likely the premiums will increase.
