Life Insurance for Unmarried Couples – Secure Your Future Together

Life Insurance for Unmarried Couples

The number of couples living together and never planning to get married is increasing significantly. Providers have thus been facilitating their concerns. Pew Research Center has stated that the number of Americans living together without marriage has increased by 29% since 2007. Across all age groups, Americans now believe a cohabitation is a suitable option for them, but it does not make couples less concerned for each other. Instead, they look after each others’ needs and wish well for each other in every aspect.  

Many unmarried couples may think that they don’t qualify for life insurance, or life coverage may not be available for them to acquire. However, the truth is the contrary. There is a list of providers that give life insurance to unmarried couples with feasible coverage. Life insurance gives peace of mind to couples who want to ensure that their partner gets ample coverage if anything happens to them.  

The Best Type of Life Insurance for Unmarried Couples 

When it comes to financial stability, unmarried couples are particularly vulnerable. In a financial loss, several insurance products can help protect their assets and give them peace of mind. The three most important types of insurance for unmarried couples to think about are liability insurance, property insurance, and health insurance.   

While property insurance guards against theft and loss of personal belongings, liability insurance covers any property damage or personal injuries that one partner may inadvertently inflict on another. Health insurance is also crucial to be covered in the event of an illness or injury. Unmarried couples should carefully weigh their alternatives to be sure they have the insurance they need to safeguard their financial future.  

Situations that Suit Partners to Buy Life Insurance 

Many cohabiting couples assume that getting life insurance is hard, if not impossible, but with the right intention and the correct information, getting life insurance can come easy for couples living together without marriage. To obtain life insurance, unmarried couples need to have   

  • Consent from the partner  
  • Demonstrate insurable interest in each other 

It is easier for married couples to prove insurable interests for each other as they contribute equally to a household. Also, they depend on each other for household contributions, and if one passes by, the other goes through emotional distress and severe financial challenges. For an unmarried couple, proving an insurable interest can be challenging if they live separately or do not share their finances.     

Still, in both cases, honesty is imperative when obtaining life insurance. Whatever your living or financial situation, you have to be transparent when providing information during the process. Giving misinformation, such as claiming you are married when you cohabitate, can ultimately lead to rejected policy.   

To get life insurance, you need to be careful in giving your information and moral status about your relationship. Transparency in dealing and information would ease half of the process. Following are some of the situations in which getting life insurance for unmarried couples becomes easy:  

Domestic Partners 

Registering for a domestic partnership can be a feasible way to get easy life insurance. It works differently than simple cohabitation, requiring you to sign up to complete legal documents. Domestic partnerships are not available everywhere. Therefore, you need to look for it in your state or municipality. A domestic partnership is advisable for couples to get life insurance and other benefits outside marriage.      


Insurance companies look for insurable interest for couples seeking life insurance. Couples having children are presumed to have a high probability of insurable interest in their children as both contribute to the well-being of their children. Generally, unmarried couples who have children together also live together. That is why unmarried couples with children don’t have to struggle to prove insurable interest. 


Couples not planning to formalize their relationship via a domestic partnership agreement or something else can still file for a life insurance plan, as it is not the only proof needed to qualify for the policy as an unmarried couple. With cohabitation, your living situation will be documented via a single lease or shared mortgage. Both situations state financial dependence in your relationship as together; you are responsible for paying the rent or mortgage. Your bills will still be paid if one of you passes away. 

Business ownership 

Other insurable interest for an unmarried couple includes co-ownership of a business. For example, if you and your significant other own a small business together and one dies unexpectedly, you may need help to keep the firm running. If you and your significant other own a business together, our article on critical person insurance might help you assess if your situation qualifies for insurable interest. 

Is Joint Life Insurance Suitable for Unmarried Couples 

Joint life insurance protects two people who are expected to die at different times. However, the policy only provides one advantage. The next obvious issue is, “When is it paid – after the first or second death?” As a result, insurance firms provide two types of combined life protection.  

First-to-die life insurance 

The payout is provided once the first individual dies in this case. Younger families frequently buy it to replace each other’s earnings, with the surviving spouse as the beneficiary. In a home where both partners make comparable amounts, for example, a first-to-die policy can assist the survivor in supporting their family, paying bills, and maintaining their lifestyle. However, the second individual is no longer covered after the policy pays out. 

Second-to-die life insurance 

This option is also known as survivorship life insurance because the payout is issued only after the second (surviving) individual dies. As a result, it cannot provide income replacement for the surviving partner; instead, it will distribute the payout to the couple’s beneficiaries. 

Pros and Cons of Joint Life Insurance for Unmarried Couples 


Less expensive 

The most common rationale for purchasing a joint life policy is to pay a single reduced premium. Worth apparent reasons, buying two individual $1,000,000 policies cost more than getting one combined life policy worth $1,000,000: Insurance companies have a potential payout of $2,000,000 with two individual policies. Still, with one policy for two individuals, the payoff is just half as high. 

More affordable for dual-income families 

Many young families only purchase individual life insurance for the working spouse or partner because the income they would have otherwise given must be replaced if that person dies. When both people earn roughly the same amount, they depend equally on each other’s income. 

If one died, the other would require the same amount to maintain the family’s quality of life. In this instance, a single first-to-die life insurance policy may be less expensive than two individual policies providing the same level of protection. In this circumstance, acquiring a first-to-die product makes sense if you can find one. 

More control for surviving spouse over estate planning 

Couples frequently use life insurance to leave a legacy for loved ones or a charity organization. A second-to-die life policy allows them to postpone the transfer of assets until both people have died. This allows the surviving person to access the policy’s cash value or change beneficiary designations if circumstances change.  


Each partner has sufficient coverage. 

One of the most fundamental tenets of life insurance is that the cost rises with age. If you each have a long-term or permanent policy providing adequate protection, you generally want to ensure those plans are maintained. Instead, consider listing each other as beneficiaries on your existing insurance. The cost of replacing those plans with a single joint life policy may not be worth it: your rates will most likely be higher as older applicants.  

In case you want to keep a separate estate  

When older, more financially secure adults with children remarry after a divorce, each partner may already have enough income or assets to meet their own needs if one or both partners dies. In any case, each spouse can name their children (or other family members) as beneficiaries. 

The survivor may have to purchase expensive insurance

If a first-to-die policyholder dies a decade after the policy, the surviving policyholder receives a settlement but no longer has life insurance protection. The surviving individual will be ten years older and possibly in worse condition at that point, and the premiums for new life insurance may be much higher. If both couples believe they require long-term protection, a joint policy may not be enough. 

Health issues may affect coverage for others.  

A joint life insurance policy is a group insurance policy issued for the smallest possible group of people – two persons. The group’s average health state and life expectancy are used to determine group life insurance expenses. Premium prices will be higher if one person is much less healthy than the other. Similarly, if there is a substantial age difference, or if one individual has a family history of a significant medical condition – or is a smoker – policy premiums for your “group” will rise.  


1. Can my life insurance policy cover my companion if we are not married?

No, the beneficiary of a life insurance policy for an unmarried couple does not include the other spouse. It would help if you become legally married to cover your partner under your life insurance policy.   

2. What are the advantages of life insurance for unmarried couples?

An unmarried couple may benefit from life insurance regarding security and peace of mind. In the event of an untimely passing, you can utilize the policy to pay for charges like funeral bills, debts, and other financial commitments. Additionally, it can aid in protecting the surviving partner’s finances.   

3. Are separate life insurance policies required for unmarried couples?

Unmarried couples should generally obtain independent life insurance plans. This ensures that each partner is safe and meets their particular needs. They can also alter their policies to suit their requirements and financial constraints.


Life insurance for unmarried couples is a crucial financial tool that can offer both partners financial protection. Unmarried couples should consider the advantages of life insurance, such as the assurance that their partner’s financial needs will be met in the event of their demise. Additionally, life insurance might lessen the strain on the couple’s finances if they incur unforeseen medical costs. Ultimately, life insurance for unmarried couples is a crucial financial instrument that can support both partners’ financial security.