One of the options available to couples in the life insurance market is survivorship life insurance. If you and your spouse are thinking of purchasing this plan, we have listed some of its pros and cons to help you make an informed choice.
Pros of survivorship life insurance
- It is inexpensive
Survivorship life insurance are a great way to save money because of how cheap they are. In fact, they are generally cheaper than personal life insurance plans. And the reason for this is that the life insurance company will only pay your family the death benefits once.
- It is easy to get
Unlike individual-owned life insurance policies, survivorship life insurance plans are quite easy to qualify for. This is due to the fact that its underwriting processes are lenient and not as strict as other life insurance plans. Besides, even if your spouse has medical issues, both of you could still get the plan because the focus is on the healthy partner.
Cons of survivorship life insurance
- It cannot be changed
Once you have purchased a survivorship life insurance policy you are stuck with it for as long as you live. There is no way you can alter its details or change the premiums to a more favourable one. This is why we recommend that you should be extremely sure of the details of your survivorship life insurance before buying it.
- It is affected by marital changes
Life does not always go according to plan. A death or divorce could affect your survivorship life insurance. In the event of a divorce, a couple with survivorship life insurance still has to pay premiums on the combined policy. Also, if one of the spouse dies, the surviving partner will keep paying premiums on the plan. And if they choose to remarry, their new spouse will be expected to join in paying the premiums on the survivorship life insurance.