Life insurance: Taking out a joint policy with your spouse

Last updated on November 25th, 2021 at 02:59 pm by Bill Tsouvalas

‘For better or for worse’ may have been what you have vowed to each other, but will you be able to take care of your significant other should you fall critically ill or pass on? Taking a joint life insurance policy with your spouse can be ideal, but what does it mean? Furthermore, how can you both benefit from it without taking on a policy that can see you paying through the nose?

Your income levels

Taking out a joint life insurance policy could be cheaper than taking out two separate policies, but this could also be affected by your income levels. This is the part where you and your partner need to assess each other’s income and the joint expenses that you have to take care of. If you are in a situation where one partner earns more than the other, it is advisable to have a larger sum that you are insured for. If you both have the same income, then insuring yourself for the same amount is ideal.

It could give you access to a discount

Taking out a joint life insurance policy can be beneficial to couples since this can possibly give them a 5-10% discount on their policy. Although changing your life insurance policy to a joint one could possibly discount, it does involve more admin. It is important that when looking for a policy that you are both actively involved in the process to find something that is financially suitable to your needs.

Stay at home spouse need cover too

The work of a stay at home spouse is important. They might not be receiving a salary for it, but they form a core to the home. Should they sustain an injury, fall critically ill, or even pass on it will be felt especially if you have children. Taking out a life insurance policy can ensure that the responsibilities that your spouse took on to ensure that your home is taken care of.

Being able to take care of your family

You and your spouse play integral parts to ensuring that the family structure of your home is maintained. However, should you fall critically ill, sustain a critical injury, or even pass on this could impact your loved ones in a drastic way.

According to a survey, 35% of Australian families didn’t have a life insurance policy. This could leave your partner and your loved ones exposed to financially. This can also create a debt trap that could affect your children in the long run.

When it comes to taking out a joint life insurance policy it is important to remember to speak to a certified insurer who has your best interests at heart. Always provide accurate information and documentation that is requested from you during the application process to make the application process smoother for you.