My partner has life insurance. Should I get coverage too?

Why is life insurance important for couples?

As you and your partner go through life together, your responsibilities may begin to look different. You may share financial obligations like credit cards, a mortgage, debt and everyday bills. You might also help take care of dependents, such as children or elderly parents.

In a scenario where you or your partner were to pass away, what obligations would the other person need to fulfill? Income is easy to remember, but think of all the other household responsibilities, such as childcare, meal preparation, cleaning and maintenance projects.

These tasks require a major time commitment and financial cost. Life insurance for stay-at-home parents and financial providers could help replace lost income and cover the costs of household responsibilities that may need to be paid for.

Do both spouses need life insurance?

Generally, yes, spouses should get life insurance. Whether you both earn income or one of you stays home, each person plays an important role in supporting the household. One of you may be the financial provider, while the other may manage valuable responsibilities such as childcare.

If your partner were to pass away, you could face financial challenges, such as loss of income and new expenses for needs such as daycare. Life insurance for spouses could help you cover these costs and find stability as you adjust to new circumstances.

Coverage for both partners could help most in these scenarios:

• Income replacement for those who earn a wage
• Paying for duties that were typically handled by the "stay-at-home" partner: dependent care, cooking, cleaning and so on
• Debt protection helps cover the surviving partners from burdening debts, such as a mortgage or car payments
• Covering funeral expenses helps ease immediate costs that occur during an incredibly stressful time

How much life insurance should couples consider?

The amount of coverage you need to help protect the financial well-being of your partner and dependents can depend on a wide range of factors. Consider the total cost of covering your monthly expenses, debt payments, tuition fees and childcare. You might also want to think about final expenses like funeral arrangements and medical bills.

If you’re unsure how to add up these responsibilities, try using an online life insurance calculator. These tools can help you estimate how much spouse life insurance you may need if one of you passes away.

Should I be looking for term life or whole life coverage?

Each policy type offers different benefits as you plan your future. The type of policy that’s best for you may depend on your family's budget and the type of household responsibilities you’d like to cover.

Term life insurance offers coverage for a set period of time, generally ranging anywhere from five to 30 years. Because it lasts only for a number of years, term life insurance typically costs less. Many term life policies also let you renew your coverage or convert it to whole life, which helps give flexibility as needs change.

Whole life insurance is designed to last your entire life. As long as premiums are paid, you can help guarantee that your partner and beneficiaries receive the policy benefit. Many whole life policies also offer locked-in rates, which can help you better manage your finances, especially while you’re young.

What about joint life insurance?

You and your partner could also explore purchasing a joint life insurance policy together. A joint life insurance policy is designed to cover both partners. As a couple, you can choose between a first-to-die policy or a second-to-die policy.

In a first-to-die policy, the benefit is paid when one partner passes away. This type of policy helps provide for the living partner and your dependents. The surviving partner could use this money to replace lost income, cover new living expenses and keep up with everyday bills.

In a second-to-die policy, the benefit is paid when both partners pass away. Your beneficiaries would then receive the benefit. A shared life insurance policy may be best if you want your dependents to have a better financial standing after you both pass.

When should I get life insurance?

Couples often share major life events together, and these milestones can be good times to explore getting your own life insurance policy.

Getting married – After you get married, you may begin planning your future together. These plans may include financial goals like buying a house or buying a new car. You may also begin to share everyday expenses like groceries. Life insurance could help cover these costs and keep you on track toward your goals.

Having a baby – As you and your partner raise a child, you may have to manage new expenses, such as daycare costs and education fees. A life insurance policy could help ensure that your child is financially protected into the future.

Buying a house – Making the decision to buy a home is an exciting milestone, but it’s also a big financial responsibility. Life insurance could help cover future mortgage payments and home repairs.

When one partner is the primary earner – When the sole financial provider is lost, you may need to start working or withdraw from your savings. Life insurance could replace lost income and help you transition into your new way of life.

Covering final expenses – You or your partner may be unprepared to cover final expenses when one of you suddenly passes away. Life insurance could help cover funeral arrangements, medical bills and other services. As one life event leads to the next, it’s important to reevaluate your needs as a couple. Reviewing your policy type and coverage amount may help ensure that your relationship’s needs, and possibly your family’s, are adequately covered.

Life insurance could help you and your partner cover financial responsibilities and protect your assets in case one of you is no longer there. You can begin your search for coverage today with TruStage^® Life Insurance.