Married couples are in a unique position when it comes to insurance. Since you share your finances, you need to ensure that your family is provided for in the event of an untimely death. The type of life insurance you choose will depend on your circumstances and what makes sense for both partners. In this article, we’ll review five life insurance policies that can help married couples protect their loved ones from financial hardship after one spouse passes away: term life insurance, whole life insurance, universal life insurance, indexed universal life insurance, and survivorship life insurance.
Best Life Insurance for Married Couples
Term Life Insurance
If you’re looking for affordable life insurance coverage, term life insurance is usually the best option. Term life insurance policies cover you for a specific period, such as ten or 20 years. When this coverage expires, your policy will end, and it won’t be renewable unless you obtain another one. The following table lists some other characteristics of term life insurances:
Non-Renewable: Because the policy provides a finite amount of protection, it’s not renewable once the term expires. If you want more comprehensive coverage for an extended period (such as 20 years), you need to look into permanent insurance solutions instead.* No Cash Value: Unlike permanent plans where cash values can grow over time-based on investment returns and investment gains/losses from premiums paid out by policy owners during their lives
Whole Life Insurance
Whole life insurance is a permanent policy with cash value and death benefit components. It’s the most expensive type of life insurance, but it can be an excellent option for couples who have long-term goals, such as saving money for retirement or paying off debts.
Whole-life policies are generally good choices for young families who want to save money over time. The premiums are typically lower than those of term-life policies, which means you’ll pay less each month to secure the same amount of coverage (or more). But because whole-life has no set expiration date like other types of policies, you may be stuck with a higher premium when rates rise later on in life, and that can make up some ground lost over time if rates were low when you first bought your plan at an earlier age!
Universal Life Insurance
Universal life insurance policies are typically a good fit for married couples. They allow the policyholder to set aside money that can be used for various purposes, including retirement savings and college savings. A universal life policy will enable you to purchase an amount of coverage that fits your needs today and changes according to what you decide in the future. It also has an adjustable interest rate with no minimum guaranteed interest rate. If market conditions change, this policy will automatically adjust itself to avoid leaving you with too little coverage or high premiums at renewal time.
Indexed Universal Life Insurance
Indexed universal life insurance is a hybrid of term and whole life insurance. It has some of the benefits of both policies without their drawbacks.
Indexed universal life is also known as variable universal life (VUL), but these two names refer to similar products that offer different features. VULs have higher premiums than traditional UL policies because they allow you to invest your money in mutual funds rather than buying bonds or paying a death benefit early (as you do with a regular UL). If you use the word “indexed” in your search for an indexed universal life policy, you’ll likely come across both types while shopping around online or visiting an agent’s office.
If you’re looking for low-cost, basic coverage, we recommend using an indexed ULI (or VUL) instead of term or whole life insurance. You can always upgrade later on if necessary!
Survivorship Life Insurance
This insurance is another popular option. Survivorship life insurance pays out only if the first person dies, so when you buy a policy, your spouse becomes the beneficiary, but they can’t cash in until you’re gone. That means there are no premiums to pay after death, making this coverage cheaper than other types of policies.
However, survivorship policies are typically unavailable for people under 30 years old — at least not without paying an additional fee — so that’s something to keep in mind before deciding on one.
Married couples need to think about which type of life insurance they will need as a couple.
When it comes to life insurance, married couples need to think about which type of life insurance they will need as a couple. Do you have young children? Are your parents still alive? Or are you looking at protecting your spouse’s income if the unthinkable happens?
This guide will help you find answers to those questions and more, including what is the best amount of coverage for each situation.
We hope this article helps you to figure out the best life insurance for married couples. There are many different types of policies to choose from, and each has its benefits and drawbacks. You must understand these so that your family is covered in the event of your death or disability.