3 Types Of Life Insurance Policies For Couples

Getting married often means pooling your financial resources with your spouse's in order to make major purchases. Combining income is a great way to increase your buying power, but it can also create financial hardship should one spouse die before major purchases are paid in full.

Life insurance policies are sound financial investments for new couples. There are a few different types of life insurance policies available to couples, so invest in the policy that meets the needs of you and your spouse.

1. Term Life Insurance

A term life insurance policy provides coverage for a single spouse, so you will need to invest in separate policies for maximum coverage. Term life insurance policies tend to be more affordable than other coverage options. This is especially true for young couples in good health.

The policy is valid for a predetermined number of years. Once the policy expires, you can change the terms of your coverage or renew your existing policy. If you expect that your financial needs will evolve significantly as you and your spouse age, then a term life policy is your best option.

2. Permanent Life Insurance

Another type of single-coverage policy you may want to consider for you and your spouse is a permanent life insurance policy. Unlike term life policies that expire after a certain number of years, a permanent life insurance policy remains in effect until the policyholder passes away.

A permanent life insurance policy will build cash value, and the premiums might fluctuate depending on market trends. You can always supplement your permanent life insurance policy with term life policies if you find you need additional coverage as your financial needs evolve over time.

3. Joint Life Insurance

If you and your spouse want to obtain a policy together, then you should consider a joint life insurance policy.

There are two main types of joint policies. The first-to-die policy provides a payout to the surviving spouse as soon as a spouse passes away. The second-to-die policy will not pay out until both spouses are deceased, making these policies great for leaving children and heirs with financial resources.

Although a joint life insurance policy might seem like a great option, these policies can be complicated by divorce or legal separation.

To find out more about life insurance policies that will meet your needs as a couple, schedule a consultation with a company like USAlliance today.


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