Life Insurance for Partners: What You Need To Know
Life insurance coverage isn’t just an option for married couples—it’s a crucial element of financial planning for every stage of life and relationship. Whether you’re in a long-term partnership, engaged, or living together, ensuring you and your partner have the ideal life insurance coverage can guarantee that you’re both prepared for when the unexpected happens.
As a trusted life insurance provider in Pacific, MO, our expert team of agents at NEC Insurance works closely with partners, ensuring that their life insurance coverage reflects their future goals. Life insurance is a helpful tool for every chapter of life and the challenges it can present, including replacing lost income, covering joint debt, managing living expenses, and providing long-term stability.
Should Couples Have Separate Life Insurance Policies?
A common question our insurance agents hear from couples when they begin planning for their future is whether they should consider a joint life insurance policy or apply for separate policies. In the majority of cases, having separate life insurance policies can provide couples with a wide range of flexibility and enhanced protection for both partners.
Separate policies allow each partner to select coverage options that not only reflect their income but can also accommodate their financial responsibilities and long-term goals. If one partner has health challenges or there is a significant age difference between partners, having separate life insurance policies can be a more cost-effective option and can ensure that each partner is receiving the financial support they need.
How Much Life Insurance Do Couples Need?
While there is no perfect, one-size-fits-all answer to how much coverage a couple will need, NEC Insurance works collaboratively with each of our clients to provide them with coverage options that accommodate their future plans, lifestyle, and needs.
A good starting point for evaluating your life insurance coverage needs is by considering the concept of income replacement. Should you or your partner no longer be able to provide for your household, your life insurance policy would pick up the slack. That’s why we recommend choosing coverage options that equal anywhere from 5-10 times of each of your annual incomes.
Long-term partners should also consider the burden of shared debt, which would fall on the surviving partner or your children. Financial obligations like a mortgage, credit cards, and even future expenses should all be taken into consideration when discussing your life insurance needs with an agent.
Lastly, the existing assets each partner holds individually or jointly will need to be taken into consideration when exploring life insurance coverage options. This can include retirement accounts, emergency funds, and existing policies.
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Term Vs Whole Life Insurance for Couples
When deciding between life insurance coverage options, couples tend to struggle to decide whether a term or whole life insurance policy will best serve their needs. It’s important to remember before deciding that each of these policy options accommodates a unique range of needs.
Term Life Insurance
This is a popular option for couples, primarily because it offers an exceptional range of coverage for an affordable premium. It also provides flexible ranges of coverage for anywhere from 10-30 years, making it ideal for couples who wish to use it to cover the brunt of significant financial expenses like raising children or maintaining long-term financial stability.
Whole Life Insurance
This life insurance option also adds the benefit of growing in cash value as time passes, which can be appealing to couples who are interested in securing a sense of permanent financial protection. Plus, this option is ideal for individuals and partners who are interested in leaving behind a financial legacy for their loved ones.
Is Joint Life Insurance A Good Idea?
It is common for couples to believe that since they are in a long-term partnership or marriage with their significant other that they should enter into a joint policy. While that is a common path couples take, it is not the only option available.
In most cases, having separate life insurance policies provides a greater range of flexibility and long-term security, and affords each partner the opportunity to choose a coverage option that best reflects their individual income, health needs, and financial goals.
Joint life insurance policies typically provide coverage for couples within the scope of a singular plan, and only pay out after the first or second death, depending on the restrictions of the policy. Most partners usually find these policies limiting, mainly because the policy’s payout ends coverage. Which can leave the surviving partner without the protection of the policy and with the responsibility of all the financial burdens.
Explore Your Life Insurance Options At NEC Insurance
Ready to consider your life insurance coverage options? Set up a time to speak with one of our expert insurance agents to discuss which of our comprehensive life insurance options will best fit your and your partner’s long-term needs
About Us
NEC Insurance supports Missourians with high-quality coverage for businesses and individuals. We apply over 45 years of experience to help you navigate the market and deliver the policies you deserve.