Life insurance for couples: Do you go with one policy that covers the two of you or two single separate policies - helping you make the choice.
If you’re planning on getting married, or are in a long-term relationship, your life insurance needs will have changed since you last reviewed them. After all, there’s a good chance you’ll soon be looking to purchase a home together or start a family—considerations you didn’t previously have to think about.
Life insurance for couples essentially comes down to both people making the decision to make sure the other is financially protected should one die. Would a mortgage, credit card debts, car loans and the day-to-day living expenses of a young family be too much for you or your spouse to afford on one income? That’s where life insurance for couples comes in.
But what type of policy or policies should you get? Basically you have two options: two separate life insurance policies—one for each person—or a joint life insurance policy—one policy that covers both of you. The following outlines the main differences and may help you choose between the two:
|Joint First-to-Die Term Policies||Single Term Policies|
|To insure two people, one policy provides coverage for both.||To insure two people, two separate policies are needed.|
|With one policy there is only one premium to pay.||With two distinct policies, there are two premiums that must be paid.|
|The amount of coverage will be the same for both of you.||The amount of coverage can be different for each of you.|
|A joint policy ends after a claim. The survivor would have to apply for new coverage if they wish to continue having life insurance.||The survivor's own policy is still in effect, even though the deceased's policy has paid a claim.|
|The premium is usually about 15% less than if you buy 2 single policies of the same coverage amount.||If buying the same coverage amount, two single policies typically cost more than 1 joint policy.|
You don’t have to make the decision alone.
We can help you compare the rates, features and options of getting, or increasing your existing, term life insurance coverage—whether it’s for two separate policies or one joint one. Our brokers are available to answer your questions and provide guidance and can be reached toll-free in Canada at 1-888-922-8422 or 416-591-9996.
Don’t forget you can compare quotes online too! Compare rates from multiple companies for both single and joint term life insurance policies.