Life Insurance for Couples | Medium.com
Why should couples have life insurance?
You’ve both worked hard to build your life together. You’ve got plans for a thriving future. Life insurance helps ensure the life you’ve built together continues.
Your contributions might be financial, such as a salary that helps cover the mortgage, child care, and other bills. Should you pass, you want to be sure your family can continue to manage day-to-day and plan for the future, including college, vacations, and other important milestones.
You might also provide for your family in significant ways essential to your family, like staying home with children and managing the household. You want to be sure your contributions would be covered by exceptional childcare providers and other help if you died.
Every couple and family is unique, with different financial responsibilities and circumstances. There are many different options for life insurance for couples, from term life insurance to cash value policies, and a wide range of riders to expand your coverage.
Life Insurance Options for Married Couples
When you start looking for life insurance, there are several different policies and life insurance company options that you can choose from, each of them has its own advantages and disadvantages. It’s important to sit down with your spouse and discuss which one will best for your family.
The first two options are the standard life insurance policies, term, and permanent life insurance. A term life insurance policy that is only effective for a pre-determined time, like 10, 20, or 30 years. Once that time is up, the policy is no longer effective, these policies basically have an expiration date. One the set term is over, you’ll have to go through the application process again and purchase another policy.
On the flip side is permanent life insurance, which is exactly what it sounds like. As long as you continue to pay the monthly premiums, these policies are in force. These plans also build cash value, which is useful if you ever need to take out a loan using the cash value.
Aside from traditional life insurance plans, there are also joint life insurance plans. These policies are similar except for they cover two different people under them instead of just one. With joint policies, there are two main types to consider, first-to-die insurance and second-to-die insurance.
First-to-die policies are paid out when the first person in the couple passes away. The payout from the policy automatically goes to the spouse and the policy is no longer effective.
Second-to-die policies are the opposite. These policies are paid out when both people pass away. The money is normally given to the children or another beneficiary to help pay for all of the final expenses like mortgages, funeral costs, and taxes.
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