Life Insurance for Couples 2023

Published On - November 12, 2023

Dylan Whitman Insurance
Life Insurance for Couples

In the world of today, the life insurance of the primary breadwinner is not enough to cover the financial hardships that arise after his death. If he survives and the wife dies instead, the costs for stay-at-home wife’s laundry, child care, cooking, grocery shopping, and event organizing fall upon him.

The cost for child care alone is unbearable, what to say of all other services included. The best way to deal with the financial hardships is to be prepared beforehand. There are two solutions, dependency life insurance or life insurance for married couples. Dependency life insurance covers your spouse and child separately.

Why Life Insurance for Married Couples

Here are some reasons why life insurance is important for married couples:

  • It can help to pay off debts, such as a mortgage or car loan.
  • It can help to cover medical expenses.
  • It can help to provide for a child’s education.
  • It can help to replace lost income.
  • It can help to provide a financial cushion for the surviving spouse.
  • It can help to give the surviving spouse peace of mind.

If you are married, it is important to have life insurance. It is a way to protect your loved ones financially in the event of your death.

For a couple, the best course of action is to look for suitable life insurance for couples while they’re young and healthy! Married couples usually go through the life insurance shopping process together, but it is better for them to buy separate term life insurance policies cut exactly according to their individual needs.

  1. Why should couples consider buying life insurance?
  2. What are the types of Life insurance for couples?
  3. Benefits of Life insurance for couples
  4. What are the best life insurance companies for spouses of 2023?
  5. Can you get life insurance if you’re in a domestic partnership?
  6. Does my spouse automatically become my life insurance beneficiary?
  7. How can you buy a life insurance policy for your spouse?

Why should couples consider buying life insurance?

In the event of the death of one, the other one is prepared to face the financial consequences. Newsflash for any uninsured person, the average cost of a US funeral is $10,000 according to the latest NFDA National Funeral Directors Association. Average American savings account has $3000 according to another survey.

How do you pay for the immediate funeral, let alone all the other pressing life expenses after one of you dies? To protect each other from the financial issues after the death of any member of the couple, it is sensible to go for life insurance shopping. To get a quote from Insure Guardian click here!

What are the types of Life insurance for couples?

 There are two types worth mentioning.

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1. Separate Term Life Insurance for Each

This is the best solution. Both of you can go together to consult an independent insurance broker recognized by NAPFA National Association for Personal Financial Advisors. Seek a professional counsel to find the best term life for yourself according to your individual age, health, medical condition and coverage for needs. If you buy a joint single term life or whole life, you both might end up paying 15 times higher price due to older age or poor health condition of one or the other.

2. Husband adds Rider to his Term Life

This is also a pocket-friendly option where the primary breadwinner adds the rider for spouse to his principal term life policy. Spousal insurance rider promises a death benefit payout if the spouse dies. This covers the costs of child care and household labor, no matter which of the two dies first.

Nevertheless, remember to add the Accelerated Death Benefit Rider and Critical Illness Insurance Rider to the primary Term life. These ensure that if any of you gets diagnosed with a fatal illness or has less than 12 months’ life expectancy, they can use the death benefit account for making medical payments, till their death.

Benefits of Life Insurance for Couples

Let’s delve into the unique advantages that life insurance brings to couples:

  • Financial Protection

Beyond the Breadwinner: Life insurance isn’t solely about covering the primary breadwinner. It extends its protective arms to both partners, ensuring that in the event of either one’s demise, the surviving spouse is equipped to handle the financial aftermath.

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  • Funeral Costs and Immediate Expenses

Facing the demise of a loved one is emotionally challenging, and the last thing you want to worry about is how to afford a funeral. Life insurance steps in, covering the immediate expenses and averting the strain of arranging funds during a difficult time.

  • Customized Coverage for Individual Needs

Opting for separate term life insurance policies allows couples to tailor their coverage according to individual needs. This ensures that each partner gets the right amount of coverage based on factors like age, health, and personal circumstances.

  • Child Care and Household Labor

Child care and household labor are significant aspects often overlooked. Life insurance for couples with spousal insurance riders addresses these concerns, guaranteeing financial support for child care and household tasks, regardless of which partner passes away first.

  • Accelerated Death Benefit and Critical Illness Coverage

Adding riders like Accelerated Death Benefit and Critical Illness Insurance ensures that the policy can be utilized in case of a fatal illness or life expectancy of fewer than 12 months. This extra layer of coverage offers financial relief during challenging health situations.

  • Low Premiums for Young Couples

Life insurance companies like Banner Life offer separate term policies with extended coverage and low premiums for young couples. Starting early ensures that you lock in lower rates when both partners are in good health.

  • Financial Security for Growing Families

Corebridge Financial, specializing in life insurance for families, provides an excellent option for couples starting a new family. With the flexibility to add a child rider, it caters to the evolving needs of a growing family.

What are the best life insurance companies for spouses of 2023?

For the year 2023, the three that are the chart toppers are:

1. Banner Life: Best for young couples.

Banner Life offers separate term life policies for each member of the couple which last for as long as 40 years. The coverage limit is high if you need it to be. The premiums and policy costs are very low. It is the best option for newly married couples. That’s the time when both members are young and healthy and premiums are lower.

2. Protective: Cheapest.

Protective is offering term policies for couple members for 40 years too. A member can buy a policy for coverage up to $50 million. The term life allows fixed and cheaper premiums compared to other policy types. Protective has managed to keep the policy costs and premiums to a minimum. It has been very cost-effective and cost competitive since the last few decades.

3. Corebridge Financial: Best Life insurance for family.

This is the best go to option for couples starting a new family, women can buy it while they’re pregnant with the new baby too! You can add a child rider from $500-$25000 coverage, whatever suits your budget!

Can you get life insurance if you’re in a domestic partnership?

Usually it is better to apply for life insurance with couple nature, if you’re married. The state recognizes you both as such, according to law. But if however, you two have been living together without tying the matrimonial knot and have babies too.Naturally, you both assumed and acquired the routine roles of housekeeper and breadwinner. For both of you to apply for life insurance for couples, you must prove the “Insurable Interest”. It means that with previous documents, you would both prove that the death of one will put a financial strain on the other.If you prove the insurable interest, you will be gladly approved for buying life insurance separately for yourselves or a Joint Life Insurance, as a couple. Joint Life Insurance is expensive and does not pay value for cash. Never go overpaying for joint coverage!

Does my spouse automatically become my life insurance beneficiary?

No, one has to name and specify the other intentionally. Otherwise the life insurance is without the beneficiary specified. You can update it any time in your life.

How can you buy a life insurance policy for your spouse?

Unless or until you have the other person’s consent and active participation, you cannot. Even if you’re buying it for the spouse to pay off a pending debt; Life insurance for a loan cannot be bought without the permission of the spouse!