Insuring your happily ever after: A married couple's guide to life insurance

Hey lovebirds! 💍 Ready to embark on the journey of marriage and all the adventures it brings? As you dive into the blissful world of wedded bliss, there's more to consider than just picking out the perfect wedding cake or choosing the right honeymoon destination. Yep, we're talking about the not-so-glamorous but oh-so-important realm of insurance. While it may not be the most romantic topic, ensuring you and your partner are adequately protected is a crucial part of building a secure future together.  

So, as you're merging lives, blending households, and planning your happily ever after, let's dive into everything you need to know about life insurance for married couples. 

Do I need to update my life insurance after saying "I do"? 

It's definitely a good move to give it a once-over. See, now that you're officially in the married club, you and your partner are likely sharing financial responsibilities and maybe even planning to start a family. While it might not be the most romantic dinner conversation, making sure your insurance is up to snuff is essential. 

Keeping your insurer in the loop about your major life changes – like saying "I do" – can actually work in your favour. You might want to tweak your policy to name your spouse as a beneficiary or bump up your cover amount. Some policies even let you beef up your cover without jumping through medical hoops after a big life event like marriage. But here's the catch: you usually need to do this within a certain timeframe, so it's best to get on it sooner rather than later. 

By taking these steps, you're ensuring that your partner and any future mini-yous are taken care of if something unexpected pops up down the road. It might not be the most thrilling part of wedded bliss, but hey, it's all about securing your happily ever after, right?

Should we both get life insurance? 

Life insurance is about having that extra layer of peace of mind. So, when it comes to whether both of you need cover, it's worth giving it some thought. Sure, you're married now, but you're still two separate individuals with your own quirks and needs.

Here's the plan: sit down with your financial adviser and hash out what works best for each of you. This way, you can customise your cover to fit your unique situations. Whether it's deciding on the right amount of cover or picking out specific options, having that one-on-one chat can help you tailor your insurance to suit you both to a tee. 

How can I make sure my spouse receives my life insurance? 

Alright, let's talk logistics. Making sure your spouse gets your life insurance dough is pretty straightforward. You can do this by naming them as a beneficiary. Basically, this means that if something happens to you, they get the financial payout from your policy. You can also list more than one beneficiary and divvy up the cash however you like. 

Getting life insurance as a couple if we are not married 

So, what if you're not quite ready to tie the knot? No worries! While joint insurance is typically for married or de facto couples, there are still options out there for you lovebirds. 

Joint life insurance vs individual policies 

Alright, time for a little comparison. With joint life insurance that some insurers offer, you and your partner are covered under one policy. It's like a two-for-one deal, but keep in mind, it only pays out once – usually when the first person kicks the bucket. 

On the flip side, individual policies give each of you your own coverage. This means you can tailor the amount and type of cover to fit your unique needs and are easier to incorporate extra cover types like critical illness or total permanent disability. Plus, if something happens to one of you, the payout goes directly to that person – no splitting required.  

And here's a tip: Some insurers might cut you a deal if you both sign up for cover together. So, it never hurts to ask if you can score a sweet discount on your premiums.

Picking the right life insurance as a couple 

When it comes to choosing the right life insurance policy for you and your partner, there are a few key things to consider: 

Life insurance: This policy provides a financial safety net for your loved ones if you pass away or are diagnosed with a terminal illness. Picture this – you're the breadwinner of the family, and if something were to happen to you, your partner and kids would still have some financial stability to lean on. 

Income protection insurance: This policy kicks in if you're unable to work due to an accident or illness. Income protection insurance can help cover a chunk of your lost wages, so you're not left high and dry. 

Total & permanent disability (TPD) insurance: This one's a lifesaver if you're facing a permanent disability that makes it impossible for you to work ever again. Think of it as a lump sum payment that helps support you and your family through tough times while you focus on recovery. 

Trauma or critical illness insurance: This policy pays out a lump sum if you're diagnosed with a serious medical condition, like cancer or a heart attack. It can help cover medical bills, rehab costs, and even give you the breathing room to take time off work and focus on getting better. 

When it comes to choosing the right life insurance policies for you and your partner, it's all about finding the right balance of coverage to fit your unique needs and circumstances. 

To nail down the right amount of cover, dive into the Product Disclosure Statement (PDS) and terms and conditions of any insurance policy. This fine print might not be the most thrilling read, but it's crucial for understanding exactly what's covered and what's not.

What happens to our insurance if we get divorced? 

As with any major life event, it's time to give your life insurance a good once-over. First things first, you might need to update some details like your address and payment methods—especially if you're no longer under the same roof or sharing bank accounts. 

Now, onto the more complex stuff. Take a peek at the ownership structure of your policies. Do they still align with your new status? And don't forget about those beneficiaries. It's crucial to ensure they reflect your current circumstances post-divorce. If you're feeling a bit lost in the process, reaching out to your legal eagle for advice can help you navigate these choppy waters. 

Read more about how you can take control of your finances after a separation or divorce.

Life insurance isn't just about preparing for the worst; it's about giving you and your partner the freedom to navigate life's twists and turns with a bit more ease. Whether it's starting a family, buying a home, or embarking on new adventures together, having that safety net in place can provide peace of mind knowing you've got each other's backs, come what may.