Life insurance for couples: What you need to know
Relationship going great? Maybe you’re starting to think about moving in together or starting a family. Milestones like these are a great time to revisit your life insurance needs. Read on for some things you should consider.
Ensure your partner’s financial security
Is buying a home or a car part of the plan? It’s probably a good idea to take out a mortgage or car loan together. But what if you’re seriously injured in an accident or die unexpectedly? Will your partner be in a position to cover the loan payments? Will they be able to pay the rent or cover the cost of your funeral? Life insurance is the best way to make sure your partner is financially secure. When one half of a couple is no longer able to pay their share, the financial burden on the other person can be overwhelming. Sit down and assess your respective needs to determine the best coverage for your situation.
Make sure your family and children are protected
Starting a family is an exciting time, but it’s also a huge responsibility. To start off on the right foot, invest in a registered education savings plan (RRSP). But you also have to make sure your loved ones won’t struggle financially in the event of your death, which is why life insurance is so important. Whether you’re married or in a common-law relationship, life insurance will ensure your partner can cover any additional expenses that may arise. If you’re in a blended family, review your life insurance right away. Your former spouse would most likely get custody of your children in the event of your death. Having a life insurance policy with your minor children or the other parent as beneficiary is a good way to ensure their financial security.
Term life insurance and mortgage life insurance
Contrary to popular belief, you’re not required to take out the mortgage life insurance offered by your financial institution when you buy real estate. Term life insurance is a great alternative, because the coverage you’re entitled to doesn’t decrease as you pay off your loan. Your beneficiary can also use the benefit as they see fit—to cover emergency expenses, for example.
A will is essential!
Every new parent should have a will drawn up to streamline the legal process in the event of their death. But in blended families, having a will is an absolute necessity, because you have to make sure everyone is covered: your children, their other parent and your new partner. If you die without a will, your assets will be split equally among your children, and your partner won’t get anything. Did you and your new flame get hitched? Then they’ll be entitled to one-third of your estate and your children will share the rest.
Self-employed?
In that case, disability insurance is a must. If a serious illness or accident were to occur, disability insurance would allow you to continue covering your expenses without dreading the end of the month. If you’re in a relationship or have children, consider also taking out life insurance to make sure your loved ones are protected in the event of your death. Decided to take out individual life insurance? Be sure to drop any duplicate coverage on your loans and credit cards to avoid unnecessary costs. If you need some guidance, feel free to contact an expert for advice. They can make sure you get the coverage that’s right for you.