Life Insurance for Married Couples: Do You Both Have to Be Insured?

For better, for worse, for richer, for poorer, in sickness and in health, until death do us part

The moment you pledge these vows in front of the altar, you are making a promise to your partner that you will be together, no matter what happens. As you and your spouse enjoy your lives as a married couple, the two of you will have to discuss and plan for many important things for a long, happy, and comfortable tomorrow.

One you can acquire a better future is to stay prepared for an emergency. Getting sick, having an accident, or worse, losing your partner aren't just emotionally stressful events, they are also financially overwhelming experiences. Other than building a decent emergency fund, investing in a life insurance plan is undoubtedly the best way you can protect your loved ones even after you are gone.

However, like any matter related to money, complications arise when couples discuss life insurance. Some think that only the breadwinner or the spouse with higher income needs a life insurance policy or plan. If you and your partner are currently facing this dilemma, you may be wondering: "Do we both need to be insured? Wouldn't one plan be enough?"

Related: 5 Common Financial Mistakes Couples Make (And How to Fix Them)

The simple answer is yes. If you and your partner are insured, this will give you both a stronger sense of security for the future. But, just like any other big investment, there are many different things to consider:

1. Figure out which plans you can and can't afford. Given that quality insurance plans will cost a hefty sum, you and your partner need to find out first if your monthly income is enough to pay off your policies. Luckily, there are many affordable life insurance plans in the Philippines that you can choose from.
   
   
2. Determine the purpose of your plan. Is it for protection, savings, or estate planning? The reason why you're getting life insurance will help determine which policy will work best for the two of you.
   
   
3. Consider your family's setup and long-term goals. Is your spouse working or not? Do you plan to have children in the future? Is your current insurance plan big enough to cover the whole family? Keeping these questions in mind will let you determine if you need more coverage or not.  

What's your reason for getting life insurance?

People get life insurance plans for various reasons. Because of this, companies offer different packages to address the needs of different households. As mentioned, reflecting on the purpose of your plan can help you figure out which policy will work best for you and your spouse.

To give you some clarity, here are the common reasons why Filipino couples get life insurance.

"My spouse is the breadwinner of our extended family."

Filipino families are generally large and extend beyond the couple and their children. Apart from household expenses, your partner may also have the responsibility of caring for less-fortunate relatives. In the event of death, disability, or illness, he or she may draw upon the proceeds of the coverage to support family members.

Related: What Breadwinners Need to Know About Buying Life Insurance

"I'm in charge of taking care of my aging parents."

If your partner is supporting his or her aging parents, you can expect medical expenses to come in. If you end up unable to earn due to an accident, a life insurance plan can help you shoulder your parents' medical expenses. A health insurance plan like the Critical Care 100 can also help cover hefty medical bills.

"We plan to have kids in the future."

A life insurance plan not only acts as a safety net, but it can also turn into a savings fund. If you plan to have children in the future, having a life insurance plan will allow you to cover their expenses accordingly.

In case they need to pay off tuition, settle inheritance tax, or deal with other essential payments, drawing from your insurance plan can provide financial leeway in difficult situations.

"We want to attain financial security early."

The price of a policy depends on the age and health condition of the insured, plus the type of coverage the insured desires. Simply put, young and healthy individuals are entitled to cheaper premiums compared to older adults. This is the reason why many couples who are in the early stages of their marriage get plans immediately.

"We want to pay off any remaining debt in case of death."

As the years go by, you and your partner may accumulate debt due to personal or business expenses. In case of their untimely death, getting a life insurance plan will allow you to pay off remaining loans or credit card bills.

Related: Debt Snowball vs. Debt Avalanche: Which Method is More Effective?

Build a better future

Attaining a better tomorrow is now easier than ever. Once you and your spouse purchase your life insurance plans, both of you will gain a stronger sense of financial security as you go through life as a couple.

In case you want to extend the coverage of your current plan, you should consult with one of our Bancassurance Sales Executives to avail of our very own Family Care Plus. Contact us today to learn more.