Do couples need life insurance?
7 October 2021
Choosing to build a life with a partner is an exciting time. You work as a couple to better understand each other, make plans for the future and share common goals and dreams you’re committed to achieve, together. When you’re having these discussions with your partner, life insurance is a subject that most likely, won’t come up. But it should.
As a young couple with your whole life ahead of you, the world looks full of possibilities. In this optimistic mindset, you probably don’t consider the ‘what if’ scenario. But life is often unpredictable. It’s worth discussing with your partner how life insurance cover can help you financially and provide some financial support if misfortune strikes and you or your partner were to pass away unexpectedly or get diagnosed with a terminal illness.
Single vs joint life insurance cover: what’s right?
Single cover means only one person is covered under a life insurance policy. If you’re a couple, you can take out two individual policies. You may choose to then name each other as beneficiaries in your policy.
By nominating your partner as the sole beneficiary of your policy, when you pass away, they would receive the nominated lump sum amount. However, if you get diagnosed with a terminal illness, this option isn’t available. The agreed benefit amount can only be paid out to you and not your partner.
Joint cover (sometimes referred to as multi-life cover) covers two people under a single policy. Irrespective of your legal status as a couple, whether you’re married or de facto, you’re allowed to get joint cover. The nominated sum insured (up to $1.5 million per life insured, subject to eligibility criteria) can be different for each of you, if you so choose.
In this type of cover, if one of you were to unexpectedly pass away, the agreed benefit amount would go to the other half. In such a scenario, the nature of the policy would then change. The surviving partner would then become the owner of the policy and it would then operate as single cover.
In deciding what type of cover to go for, it’s important to consider your circumstances. Some couples might prefer multi-life cover because it keeps things uncomplicated. Some insurers might offer a discount on multi-life cover, which means it might turn out to be cost effective than taking out two individual policies. Suncorp Life Insurance offers a 5% discount on the youngest life insured, if you end up choosing multi-life cover.
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Suncorp Life Insurance products, other than in some circumstances the Redundancy Benefit, is provided by TAL Life Limited ABN 70 050 109 450 AFSL 237848 (TAL Life) which is part of the TAL Dai-ichi Life Australia Pty Limited ABN 97 150 070 483 group of companies (TAL). TAL is not part of the Suncorp Group. TAL uses the Suncorp brand (part of the Suncorp Group) under license. Any advice on this page in connection with the Life products is general in nature and is provided by Platform Ventures Pty Ltd ABN 35 626 745 177 AFS Representative Number 001266101 (PV). PV is part of the Suncorp Group and an authorised representative of TAL Direct Pty Limited ABN 39 084 666 017, AFSL 243260 (TAL Direct). General advice does not take into account your individual needs, objectives or financial situation. Before you decide to buy or to continue to hold a Life Products you must read the relevant Product Disclosure Statement. The Target Market Determination (TMD) for the product is available on our website.