If you just got married or have been married for years, life insurance is something you and your partner should consider buying together. It is popular for one of two partners to get life insurance, but we will explain what life insurance options exist for married couples. We will also explain the benefits of life insurance for married couples.
Life insurance options for married couples
Separately purchased life insurance: Married couples can purchase life insurance policies individually. They can buy term life insurance or permanent life insurance if they wish to do so. It is quite expensive to purchase separate policies.
Joint life insurance policies: This life insurance option is especially common for married couples. Here a married couple has life insurance coverage under one policy. This alternative is cheaper than buying separate policies. On the negative side, this policy is problematic in cases of divorce.
With the joint life insurance policy option, you can choose from:
- A first-to-die life insurance policy: This life insurance policy for married couples means that you receive a payment after the death of your partner. After this payment, the life insurance policy ends.
- A second-to-die life insurance policy: Here, the life insurance payment is made after the death of the married couple. Their beneficiaries receive the payments instead.
Benefits of life insurance for married couples
- Protection of either partner regardless of who dies first.
- Creation of savings for their dependent. A married couple can use their life insurance policy as a way of creating and growing savings for their dependents.
- Provision of funds to pay for any debt owed by the dead partner.
- Some life insurance policies will provide financial aid to you and your partner if either of you are critically ill.