Life insurance can be a touchy topic to discuss with your partner or spouse. This is often the case because it means talking about mortality. But it is one conversation you should not avoid having — after all, it is better to have “the talk” than to be faced with a financial disaster after yours or your loved one’s death. So, what is the best way to discuss life insurance for couples, with your partner or spouse?
In this post, we share some tips to make it easier for you to have a conversation about life insurance with your partner or spouse.
Let’s dive right in.
Do your homework on life insurance policies for couples
Life insurance is not a fun topic; some people may even consider it to be a controversial living room topic. Your partner or spouse may not be prepared to talk or hear about it, but that should not stop you from doing some research.
The easiest solution is to speak with a life insurance broker, like Dundas Life. We will answer all your questions without any consultation fee. We can even help you to pick the policy that is right for you.
Furthermore, online resources are available in plenty. A quick online search will show you the different types of life insurance products available. With this knowledge, you will easily have answers to any questions that your partner or spouse may ask you when you sit down to discuss life insurance.
Some common life insurance questions are:
- How much life insurance coverage should we buy?
- What will be the cost of life insurance?
- What additional features — aka riders — are available?
- Which is better — two separate policies or a joint policy?
- Is term life insurance a better choice than whole life insurance?
Knowing the details about life insurance policies will help you allay your partner or spouse’s doubts about life insurance and show them why it is not only necessary, but essential.
Assess your current financial situation
Only you can decide how much life insurance you need since no one knows your financial situation better than you. Therefore, take a few moments to assess where you stand financially.
Start by taking stock of all your debts. If you have a house, what is the balance on your mortgage? How much is the student loan? How much time will it take to pay off the car loan?
If you have kids or planning to have them, there are additional costs to consider. Raising a child in Canada is expensive, with parents on average spending $10,000 to $15,000 a year until their child turns 18. Keep in mind, this estimate does not include college tuition fees. So that is another expense you may want to factor into your calculations.
Most families rely on two paychecks to get by. Without the income of one person, the surviving parent may find it difficult to maintain the family’s current standard of living. Proceeds from your life insurance policy can help keep your family afloat if the unthinkable happens.
Life insurance advisors, like Dundas Life, can help you understand how much life insurance you need. An exact estimate, in turn, will come in handy when you eventually sit down with your partner or spouse to discuss life insurance.
Find the right opportunity
Life insurance for couples can be a touchy subject, but certain events in life can make it easier to bring up the topic with your partner or spouse. Examples of such events include planning for a baby, purchasing a new home, or launching a business. Why? All these life events involve taking up extra responsibility. A life insurance policy can ensure if something happens to one person, the other will be able to shoulder the financial responsibilities alone.
What to talk about
Approach it as a family plan
Talking about death and dying with your loved ones can be unpleasant. Therefore, center the conversation on the need to protect the family when the two incomes become one. Just like you have home insurance to protect your home, you need to put a life insurance plan in place to protect your family’s income.
Get a few quotes to talk dollars and cents
Life insurance can be cheaper than your partner or spouse may think. If you think your partner or spouse may want to avoid talking about life insurance because of the cost, collect a few quotes first.
Calm any doubts about affordability of life insurance
Many people think life insurance is prohibitively expensive — but that is not the case. For instance, term life insurance rates for young and healthy people can be as low as the cost of an large pizza!
If your partner or spouse thinks a life insurance policy is something you cannot afford, show them the actual quotes. You can also go online then and there and use an online insurance calculator to demonstrate the point that life insurance is not expensive.
When you are on a tight budget, it is easy to think of life insurance as an unnecessary gamble. After all, you are putting a part of your already limited budget — money that you can use for other needs — into something that may not pay out at all.
Show your partner that life insurance does not have to cost an arm and leg. Once they see its affordability, they may be more interested in purchasing a policy.
Get professional help
Life insurance agents are adept at convincing reluctant buyers of the merit of buying life insurance. If your early conversations fail to impress your partner or spouse, consider speaking to a life insurance agent.
Some additional points
Both partners need life insurance for couples
It is easier to think that only the main earner of the household needs life insurance since his or her death will mean the loss of the family’s only or main source of income. However, a stay-at-home parent also needs life insurance. Their death impacts the family financially too.
A stay-at-home parent provides many services for free, such as caring for children. If the primary caregiver is no longer around, the surviving partner or spouse will need to pay someone to take care of the duties they provided for free.
Two single policies or a joint life policy
Single life insurance covers the life of one person. The beneficiary will receive the death benefit amount if the insured dies while the policy is still in force. If you and your spouse each have a policy in their name, the policies will pay out separately upon the insured’s death. Both of you can tweak the coverage according to your needs. If one of you passes away, the designated beneficiary will receive the payout. The surviving partner will continue to have life insurance coverage.
Joint life insurance, by contrast, covers the lives of two or more people. However, the policy pays out only once, either when one of the insured passes away or when both the insureds pass away.
A joint life policy is usually more affordable than two separate policies. If the budget is tight, you may want to consider this option.
Right now is the best time to buy life insurance for couples
If your partner or spouse understands the need for life insurance for couples but is concerned about the cost, tell them right now is the best time to get coverage. Life insurance gets more expensive as you age. For every year you delay, the insurance cost is likely to increase by 4-8%. If you develop a medical condition, like diabetes, your rates will go up even more.
If you are on a limited budget, term life insurance could make sense for you. It is five to 15 times more affordable than whole life insurance. Also, you may want to go for joint first-to-die life insurance instead of buying two term life plans. Such a policy will cover both of you and will pay out the death benefit if one of you dies.
Life insurance for couples is not the most pleasant topic to talk about with your partner or spouse — but if something happened to you or them, your family may be left without a financial safety net. The tips discussed in this post show you how to bring up the topic of life insurance with your partner or spouse and, to get them to consider it seriously.
Thankfully, buying life insurance is not as difficult as talking about it. An independent broker like Dundas Life can help you find the right policy for your family in a short amount of time. Whether you want life insurance for couples or a separate policy for yourself and your partner or spouse, we have you covered.