A lot of people tend to think that once they get married, they need to combine their life insurance policies or even do away with their old policies and purchase joint life insurance. But this isn’t necessarily the case, and in fact it is recommended that each person purchase his or her own term life insurance policy. There are a variety of reasons for this, which we’ll go over here.
Separate Policies Provide More Options
Each person is able to get coverage from the insurance company of their choice, rather than having to find one that works for both (and with joint policies, you options are limited in terms of companies that offer them). Different insurance providers will offer different rates, so you will be able to each “shop around” (which you can do using the quote tool on this website) and get the best coverage possible based on your individual health histories and life situations. So, if your spouse has a health condition, it will not affect the policy you get.
Premiums Are Cheaper
Since separate insurance policies just cover the individual, the premiums are generally cheaper than they are for joint policies. This is important if money is of concern, as it is for many younger couples that may not have much saved up. This is also more convenient for couples that do not have combined bank accounts.
Separate Policies Benefit Children More Than Joint Policies
When you buy a “joint” policy they are usually a “first-to-die” type of policy. What this means is that if one partner/spouse passes than the death benefit pays out. However the surviving spouse is left without coverage. This is not an ideal situation to be in if you have children as each one of you should have coverage, and with separate policies you will both have you own coverage that doesn’t stop if one of you passes.
Separate Policies Simplify Divorce
It’s something nobody wants to think about, but it is something that needs to be considered. People who are recently married often assume that divorce will never happen to them, but the reality is that things can change, and many couples do end up splitting. If you have separate policies, all you will need to do (if you even want to) is change the beneficiary. This keeps things simple and saves a lot of extra, unnecessary strain.