Should Married Couples Get Life Insurance?

Why Do Married Couples Need Life Insurance?

If you share financial responsibilities with your spouse, life insurance can help you protect those priorities if the unexpected happens. Here are some of the most common reasons couples choose to get life insurance.

• Income replacement: Life insurance can help you replace lost income. That way, the surviving spouse doesn't have to cover the bills by themselves. It can also cover costs for child care, meal preparation and other responsibilities.
• Debt coverage: You and your spouse may share debts through joint accounts or because you live in a community property state. Life insurance can ensure these debts, like your car or credit cards, are paid if one of you passes away.
• Mortgage protection: One of the biggest benefits of life insurance for a married couple is that it can replace lost income if one spouse dies. This helps the surviving spouse keep up with mortgage payments and avoid losing the home.
• Support children: If you have or plan to have children, you may want a life insurance policy to protect them from financial hardship if you or your spouse dies. One option is to direct the death benefit payout to a trust rather than leaving it directly to young children or relatives.
• Legacy planning: As a couple, you may wish to leave money to your heirs as part of your legacy. The funds can come from the policy payout of a term life policy or from the death benefit and potential cash value of a whole life policy. Either way, life insurance gives your family or a cause you care about solid financial support after one of you passes.

Learn more: Should Newlywed Couples Get Life Insurance?

Joint vs. Separate Life Insurance

When purchasing life insurance, couples can opt for joint coverage or separate policies. When you purchase separate policies, each one covers a single spouse. Each policy has its own death benefit, which pays out to the named beneficiary when that person passes away.By contrast, a joint life policy covers both partners with one policy, which means it has one death benefit that pays out once. The payout can be structured as first-to-die, which pays after the first spouse passes, or as second-to-die, also called survivorship. The latter pays only after the second spouse dies, which means the death benefit is paid to your named beneficiaries. These policies can be hard to find, and many insurers don't carry this coverage.

What Type of Life Insurance Is Best for Married Couples?

Two individual life insurance policies, one for you and your spouse, may be a better option than a joint policy because both of you can get a policy that guarantees a payout. The option that may not be best for married couples is second-to-die coverage. Its payout comes only after both of you have passed away, which leaves the surviving spouse without financial protection.

In addition to that choice, you'll also need to choose between term or permanent insurance. Term life is typically better for couples because it costs far less than permanent coverage. That may make it easier to afford the amount of protection you need to cover both of you.

If you don't mind paying higher premiums, you might prefer a permanent policy, such as whole life or universal life. These policies last your whole lifetime and build cash value.

Tip: Be aware that insurance probably isn't as costly as you might imagine. A 2024 study by insurance research organization LIMRA shows that 72% of Americans overestimate the price of a basic term policy.

How to Get Life Insurance as a Married Couple

Purchasing life insurance as a couple is essentially the same as getting it individually. The only difference is that you'll need to decide upfront whether you want to purchase separate policies or a joint policy. You should also decide whether you want term life insurance for a set number of years or a permanent policy that doesn't expire and builds cash value.After that, follow these steps to get a life insurance policy that'll protect you and your spouse:

1. Calculate your life insurance needs. There are several ways to determine how much life insurance you need. One quick method is to multiply your annual income by the number of years your spouse or dependents would need financial support, then subtract any liquid assets you already have. For example, if you earn $100,000 a year and expect your spouse to need income for 10 years after you pass, that works out to $1 million. If you already have $200,000 in savings and assets, then an $800,000, 10-year policy may make sense.
2. Shop and compare quotes from several life insurance companies. As with purchasing any financial product, it's a good idea to get multiple quotes so you can compare coverage options and amounts. You could also work with an independent insurance agent who sells policies from several different providers and can help match you with a policy that meets your needs at the best price.
3. Apply for the policy. Once you find the right policy, fill out an application with details about your health, lifestyle and finances. The insurer may also require a phone interview or a medical exam.
4. Accept, pay for and activate your policy. Once you're approved, you'll be able to review the details, including the death benefit amount and the cost of your premiums. The policy becomes active once you accept the terms and make your first premium payment.

Tip: The best time to buy life insurance is when you're young and healthy because rates are lower. As you get older, premiums rise, and your options may be limited if you develop health issues before you apply for a policy.

Frequently Asked Questions

Save Money on Life Insurance

Losing a spouse is hard enough, especially when you still have financial obligations to cover but no longer have that spouse's income or support. Life insurance for married couples can help ease the strain by providing a death benefit to the surviving spouse. The payout can help them stay on track financially and keep up with household costs.

If you're looking for a new policy for you and your spouse, check out Experian's insurance marketplace. Experian shops quotes for you with multiple top insurers to find your best options and potentially save you over $800 a year.