Couples Insurance

There are several situations where it makes sense for both partners to have life insurance policies for the financial wellbeing of the entire family, even if it's only just the two of you.

Whats even better is that most insurance companies offer couples insurance discounts of 5-10%!

Couples insurance considerations

Here are some things you and your partner should consider when deciding which life insurance policy to buy, and how much:

1. Income Levels
If only one of you earns a salary, the person earning that income should have a larger sum insured. If both partners earn similar incomes then similar life insurance options would ensure that the family can still support itself if one of you were suddenly gone.

2. Family Responsibilities
You both support the family, even though it may be in different ways. One partner may be a stay at home parent, spending hours maintaining the home and looking after children. The dollar value of this task alone would be quite high if that particular spouse were to pass away.

You would possibly need to hire a nanny, pay for babysitters or day care, or find other child rearing options to make sure your children's routine was kept as stable as possible. The same is true of cooking, cleaning, yard work, or anything else you couldn't do alone while still bringing in your own income.

Every responsibility you and your partner manage has a dollar value. A life insurance policy for a non-working partner will help the surviving family members account for those potential increased costs of living.

3. Risk of Serious Illness or Injury
If either of you have a family history of serious illness or life changing medical conditions, or takes part in activities that increase your chances of serious injury, a life insurance policy might be in order regardless of what your income is.

You have the option to add on TPD insurance, which would pay out if you became disabled. Without it, that disability could put a huge financial burden on the rest of the family. Even if you're the sole provider and your income can cover the family's everyday bills, could you also afford those increased medical expenses without some help? Probably not.

Get the right joint policy

The right life insurance policy can do more than directly replace your or your partner's income in a worst case scenario. Having couples insurance regardless of income contribution makes sure you're both covered and able to maintain your quality of life.

People might have a tendency to undervalue the contribution of others, but take the time to put a dollar value on everything you or your partner does for your family. Only then can you decide whether life insurance is right for either one, or both of you.

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September 2011