No one can predict the future, but now is a good time to start talking about it. Part of securing your family’s financial future involves discussing what life insurance plan best fits your needs.
By discussing these 7 topics with your partner about the current and future status of your relationship, you can better determine what type of coverage you need:
1 - Your Ages
If you’re a young couple, you might want to consider investing in a term life plan with the option of converting it into a permanent plan later in life. Doing so will allow you to skip a medical exam and a health evaluation later on.
If you have extra funds to spare, you and your partner may want to consider starting with a whole life or universal life plan. These plans cost more than a term life plan, but they come with many additional perks, like living benefits. Whether you choose a term life or permanent option, your premiums will be lower if you’re young and in good health.
If you’re in your golden years, you can purchase a term life plan if you’re under 80. The death benefit of these plans can help your partner supplement their retirement savings or maintain their standard of living. You can also purchase final expense insurance, which covers funeral and burial expenses.
2 - Your Employment Situation
If you’re both working and splitting your bills, you may want to buy a life insurance plan with a death benefit equal to your income. You can determine the amount of the policy based on how many years you want your partner to be coverage for, helping them maintain their standard of living. You may also want to buy a similar policy if only one of you is working, or if there’s a significant income disparity between you two.
You may not need life insurance in the event that you’re making less and have no dependents. However, it never hurts to have term life insurance to cover funeral and burial costs. Death benefits help pay bills during the grieving period if the unthinkable happens.
If neither of you is currently working, you may still need insurance to cover the cost of bills and other expenses.
3 - Your Dependents
If you have kids, you may want to buy a life insurance plan that will cover the cost of child care and college expenses. If someone else is dependent on you, like a grandparent or a differently abled loved one, life insurance can cover their needs as well.
4 - Are You Planning to Adopt?
LGBTQ couples are four times as likely to adopt than heterosexual couples.
Adoption isn’t a cheap process. There are often legal fees, future financial needs, and other costs to consider. If you’re planning on adopting overseas, you’ll also have to consider travel expenses and fees for both domestic and foreign lawyers.
5 - Renting or Owning a Home
Whether you’re paying rent or a mortgage, a death benefit can help your partner keep a roof over their head if you pass away. If you’re planning on buying a home, it can cover the mortgage costs, or be invested in an index fund that accumulates interest for a future purchase down the road.
6 - Do You Have a Business, or Are You Planning on Starting One?
According to Fortune Magazine, LGBTQ-owned small businesses earn almost three times that of non-LGBTQ-owned businesses. Still, running a business can get expensive. If you’re the business owner, consider purchasing a life insurance plan that will protect your partner’s income if your company’s profits can’t cover your debt.
7 - Do Either of You Have Significant Debt?
“American households are now carrying greater amounts of debt into retirement and leaving behind greater amounts of debt to loved ones if they die prematurely without a back-up plan,” according to Quotacy. Debt comes in the form of:
- Student loans
- Car loans
- Credit cards
- Medical bills
- Home equity loans
- And much more
The accumulation of debt makes having a life insurance plan vital. If your partner assumes your debts, they may be left figuring out your joint financial situation by themselves. That’s the last thing anyone should have to deal with when grieving for a loved one. A term life insurance plan can provide a death benefit that will cover these debts, taking the burden off of their shoulders.
After you and your partner discuss these topics at length, we can help you find the perfect life insurance plan for you. While you can’t predict the future, you can try your best to be prepared for whatever happens.
Don't have Life Insurance? Well we made it easy for you to apply for reliable life insurance through our simplified and streamlined online application process. No exam | No waiting | No hassles | Fast, free quote!