Life insurance for couples

How we calculate Life Insurance Finder Scores

Read full methodology

What different scores mean

9+

Excellent

These products offer great value, with a good score across both features and price.

7+

Great

These are competitive products, though they didn't quite get top scores.

5+

Standard

These products might offer less value or command a higher premium than others in the market.

0+

Basic

These products might only offer a basic set of features or aren't very competitive on price.

If you are in a relationship with someone and both have financial obligations that would be left behind if one were to pass away, it could be worth considering protective cover to ensure the partner does not endure financial hardship. Couple life insurance (also known as joint life insurance) cover includes:

• Lump sum payment. The lump sum benefit from a life or trauma insurance policy can go a long way to ensure that the person you care for (and in some cases, the children you leave behind) are looked after and are able to maintain their current way of life.
• Joint policy discounts. Joint policies can attract premium discounts as great as 5% for couples.

Finder Score - Life Insurance

Life Insurance is a little complicated and a lot overwhelming. That's why we made the Finder Score, to make it easier to compare Life Insurance products against each other. Our experts analysed over 30 products and gave each one a score between 1 and 10.

But a higher score doesn't always mean a product is better for you. Your situation is unique, so your policy choice will be too. Don't think of Finder Score as the final word, but as a good place to start your life insurance comparison.

Read full Finder Score methodology

Pros and cons of a joint life insurance policy

How do I speak to my partner or spouse about life insurance?

Life insurance for married couples

Getting married is often a key stage for many Australians to consider taking out life cover. Some key financial obligations that can arise at this stage include;

• Car Loan, Credit Card Debt and Personal Loans: Small personal loans can combine to create a significant expense to be covered.
• Mortgage: Many couples will look to buy their first home after having tied the knot. A new home and mortgage is for many the biggest financial commitment they will make in their lives. Having the right level of cover in place to ensure that one's spouse is not left with this hefty debt is essential.
• Dependent Children: Consider some of the expenses that would need to be covered if your children needed care;
  • Clothing
  • Food
  • School Fees
  • Medical Bills

Finder survey: What events make Australians take out or adjust their life insurance coverage?

Should unmarried couples consider life insurance?

Whether life insurance is worth considering for unmarried couples really comes down to their own situation and if they have any current or future shared obligations. Some of these obligations could include:

• Children
• Mortgages
• Short term debts e.g. credit card
• Other loans e.g. car loans

If there is shared financial obligation i.e. you may not be married but already have a child or have accumulated mortgage debt, then it is still worth taking out a joint plan.

What's the benefit of taking out cover at a younger age for couples?

Taking out cover at a younger age, can save applicants thousands as they will most likely be in better health than in later in their life and will be looked on more favourably by an insurance underwriter.

Most policies will feature “Guaranteed Insurability Feature” which allows policyholders to apply for more cover into the future without having to undertake further medical underwriting. This means that you do not have to predict how your situation may change in years ahead but still take advantage of competitive premium rates.

Key considerations for couples looking to take out life insurance

• 1. Who is the main breadwinner?

  It is important to consider the difference in income stream from both partners. There should be a greater sum insured in place for the person contributing the greater amount to the combined household income.

• 2. Domestic and workplace duties of both partners

  Even if one partner does not work, their role in the family and duties performed can still equate to a significant dollar value. To put it another way, consider the hours that may be spent carrying out household duties and how much would need to be paid to have these duties covered by a professional housekeeper.

  Whether it be mowing the lawn, feeding the kids, taking the kids to school or cleaning the house, every task undertaken by a parent can have a dollar value associated to it. Consider how your finances may be affected if the surviving parent was left with all of these responsibilities on top of earning an income.

• 3. Bundled Policies with TPD and Trauma Cover

  The reality is that while many families may not have to endure the hardship of loosing a loved one, many families may still endure the hardship that is brought from serious injury or illness. A 2011 underinsurance Infographic by humblesavers.com showed that in the space of 12 months, over 235,000 working age people with dependent children, suffered a serious injury or illness. In addition, statistics have shown that 1 in 3 women and 1 in 4 men will suffer some form of cancer in their lifetime. What these statistics show is an important to consider other forms of living insurance to provide adequate support to families forced to stop work and deal with these illnesses.

  Trauma Cover for Couples

  Trauma cover can provide excellent support for couples where one has suffered a specified medical trauma such as stroke, cancer or heart attack. The lump sum benefit paid can ensure that medical expenses can be covered and the family may continue its way of life if the insured is forced to take time off work.

  TPD Cover for Couples

  TPD provides a lump sum benefit if the policyholder becomes disabled and is unable to work again. This benefit could ensure that the family is still able to maintain their way of life and the spouse could continue to earn an income while the proper care is provided for the disabled partner.

Or speak to an insurance specialist to help you find personalised cover

Frequently asked questions

• Can you get life insurance as a couple?

  Yes, typically when you apply for a life insurance policy, you have the choice of applying for a single policy or a joint policy. Some providers also offer family life insurance, which can include an additional benefit for your child.

• Is it cheaper to get couples life insurance?

  It depends. Some insurers offer joint policy discounts which can save you 5-10% off your premium. If one partner has a multi-policy or loyalty discount with a provider, then you can also save on your joint policy. Check out our guide on cheap life insurance policies which includes further ways to save on your insurance.

• How much life insurance should a married couple have?

  To work out how much cover you'll need as a couple, you should calculate how much money your loved ones would need to maintain their current standard of living if either of you were no longer around. You can take into account your outstanding debts, income and potential future expenses such as medical bills or funeral expenses.

• Is it better to have joint or single life insurance?

  There are a few advantages and disadvantages for both. On the one hand, you can potentially save money on your premiums with a joint life insurance policy. On the other hand, if your relationship breaks down, changing your policy to a single policy could be an additional hassle at a difficult time.

Written by

Richard Laycock

Editor

Richard Laycock is Finder’s insights editor after spending the last five years writing and editing articles about insurance. His musings can be found across the web including on MoneyMag, Yahoo Finance and Travel Weekly. Richard studied Media at Macquarie University and The Missouri School of Journalism and has a Tier 1 Certification in General Advice for Life Insurance. See full bio