Should Both Partners Have Life Insurance?

A common misconception couples run into when looking into life insurance, is that it is only necessary for the main breadwinner to take out cover. It’s dangerous to think your partner or your family will be okay if only one of you is insured.

Couple with no children

As a couple, you probably live together. You might be married and most likely in a serious relationship. You’re planning your future together. You want to ensure your partner is protected, should something happen to you.

Do you both need cover? Absolutely.

You’re both contributing towards mortgage repayments or rent. You have your credit card debt, possibly even personal loans.

It tends to be the main breadwinner who takes out cover. But why shouldn’t the partner take out cover as well? Can the main breadwinner survive without the insurance payout? Maybe. Why would you want to leave them with a pile of debt though? A partner passing away can often have a devastating effect. Leaving your partner with enough money to buy a house or pay off your mortgage can leave them with a fresh start and one less major issue to consider. It can leave them with the opportunity to continue on the same lifestyle they know and help continue some normality in their life.

Couple with children

The decision to have children brings a lot of happiness into peoples lives. The one thing people can underestimate is the costs involved with having children.

You add onto the debts you had previously as a couple. You need a bigger house, a bigger car, a bigger limit on your credit card. You need to send your children to school and possibly take your family away on holidays.

Most people reach the decision of wanting to protect their lifestyle and families, so taking out life insurance for only the main wage earner is not enabling full protection for your family.

It’s a fact young children need a lot of your attention. Whether they’re toddlers, in primary school or high school, there is always something going on.  This can mean lots of money going out of your pockets.

The death of a parent, if it’s not the main breadwinner, can mean that the person who has always been the main income earner may need to stop working to look after the children. Or they may need extra money to help out with nannies or babysitters. They may need to use day care, whereas before they did not.

There are so many different reasons to ensure both partners. Each individual situation is different, but realistically there’s no reason not to insure both. You can tailor a budget to suit your lifestyle, so even if you cannot afford to insure a large amount, your partner is left with a little less worry at a very stressful time.