Saying 'I do' comes with many financial decisions that need to be discussed. Whether you have just recently married or have been married for a while, deciding on life insurance is an important step couples need to take.
But do you and your spouse need to get separate life insurance policies? We break down everything you need to know when it comes to covering your partner in a joint or separate life policy.
When should married couples get life insurance?
Getting life insurance as soon as you say 'I do' is one of the best times to get life cover. You can still take out a policy even if you have already been married for years. A life policy is designed to grow with and be there for you when you experience major milestones such as getting married.
You can choose to take out a policy and include your partner as the beneficiary. They can also choose to have their own policy and add you as a beneficiary to make sure that all your bases are covered. This ensures that should one of you fall terminally ill or die, the other partner will have a financial safety net to fall back on.
What are the benefits of having life cover?
There are plenty of benefits that can be used while you are still living and when your loved ones need it the most after you have passed on. The range of benefits that come with a life insurance will differ from insurer to insurer, but once you have received the payout you can use it for:
Daily living expenses
Adapting a house to support someone's medical condition
Paying off any debt
Paying off a house
Towards an investment
Essentially, you can choose how you will use the payout once it has been processed by an insurer. The only way you can have control over what your loved ones do with the payout is by creating a will.
How much life cover is enough?
Assessing how much cover will be enough for your spouse boils down to what their needs are. Looking at your current lifestyle expenses per annum and what will be needed to sustain it for years to come should you die is one way of looking at it. However, to make the process easier for you, you can use a life insurance calculator or get an obligation-free quote to wrap your head around how much cover will be enough for you. Keep in mind that a policy will be tailored to your needs so that it is affordable and adequately covers you and your loved ones
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.