Buying Life Insurance As A Couple: The Guide You Need

Shawn Plummer

CEO, The Annuity Expert

Couples have a few more things to think about when buying life insurance than single people. So in this guide, we will walk you through buying life insurance as a couple and help you find the best policy for your needs. We’ll cover everything from how to get started to what to look for in a policy. So whether you’re just getting married or have been together for years, read on for the advice you need to make sure your loved ones are taken care of financially if something happens to you.

Both of you should buy life insurance.

As your finances become entwined once you tie the knot, so does your financial future. Life insurance is an important element of personal financial stability. Most likely, you rely on one another for financial assistance, and if you have children, they do as well. The money from life insurance can be used to pay for a variety of items, including:

  • Daily living expenses
  • Financial supporting your children
  • Future income
  • Emergency funds
  • When you die, your estate will be subject to final expenses.
  • Mortgage payments
  • Pay off debts the deceased owed
  • Pay off debts you both owed jointly

Choose the right kind of life insurance

It’s a big decision to choose what kind of coverage you’ll want and how much you’ll require. There are two distinct types of life insurance to think about.

Term life insurance

Level premium life insurance is a simple-to-understand policy with consistent premiums for a set number of years. This sort of life insurance is usually between 10 and 30 years long. If you die during the term, the life insurance provider pays out a generally tax-free death benefit as a lump sum to your beneficiary.

The death benefit is typically tax-free and may be used for various things, including burial costs, mortgage, and debt payments, living expenses for your family, and charitable donations.

To continue coverage once the term has ended, you must convert your policy to permanent coverage before the term ends, renew it for another term, or shop for a new policy.

Term insurance is usually the cheapest form of life insurance.

Permanent life insurance

Unlike term coverage, permanent life insurance may benefit you for the rest of your life.

Consider buying an individual policy and a joint policy

The most important thing to consider when buying life insurance is how it will protect your dependents, especially your spouse. You’ll need to choose a policy based on your family’s specific circumstances, requirements, and goals.

Joint life insurance

A joint life insurance policy will cover both you and your spouse. This is often a permanent policy that married or domestic partners may only purchase. You will have less control over this insurance since it considers your and your partner’s history.

If your spouse has a health issue that prevents them from obtaining an individual life insurance policy, you may be able to obtain coverage by purchasing a joint policy.

However, you should remember that the rates will probably be far higher than if you bought insurance separately.

Individual life insurance

Separate life insurance policies are often less expensive and provide more coverage for married couples than joint ones do. In addition, buying two individual term life insurance plans allows you and your spouse to customize each policy to meet your specific, unique requirements.

You have greater oversight regarding obtaining the greatest rates based on your health, age, gender, and other factors.

Calculate how much life insurance is required.

The amount of life insurance you’ll require is determined by your financial contribution levels, the value of your household’s contributions, and the cash necessary to pay off your obligations and allow your dependents to continue their lives when you’re gone.

When estimating how much life insurance is required, consider the following:

  • How much money would your spouse need to cover daily living expenses?
  • How much money is required to support your children now and in the long run?
  • How much money would you need to pay off your mortgage?
  • What expenditures should you make to cover outstanding debt payments?
  • What is the maximum amount of money required for burial costs?

Calculating your life insurance coverage requirements based on these criteria generally results in numerous levels of life insurance for you and your spouse. However, purchasing the same amount of coverage is a sensible, blanket approach that may assist in maintaining the same financial stability if one of you passes away.

Other Considerations

It’s also worth noting that you may buy more life insurance. For example, some life insurance companies allow you to change the coverage on a permanent life insurance policy, usually by adding additional death benefits at specific intervals. They may also provide term conversion, which allows you to convert your term life insurance policy into a permanent one at a certain date.

You may also buy extra life insurance if you don’t want to convert your term life insurance policy or the premiums are too expensive. If you can’t convert your term life insurance policy, or if the premiums are too high for you, consider getting a new one. The new policy can be added to or replaced with your present one.

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The Next Step

Buying life insurance as a couple can be daunting, but it’s important to have the right policy to protect your loved ones. We hope this guide has helped you understand the process and given you the information you need to make an informed decision. If you have questions or want a quote, don’t hesitate to contact us. We’re here to help!

Buying Life Insurance As A Married Couple

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Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

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