Life Insurance for Unmarried Couples

Whether you're in a long-term relationship or choose not to be married or in a civil partnership, you can still benefit from life insurance. Many couples today share homes, raise children, and build financial lives together without legal ties like marriage.

However, without the legal protections that married couples automatically receive, it's crucial to be intentional about financial planning. In this guide, we'll answer some of the key questions you may have about getting cover if you are unmarried.

Do I need to be married to get life insurance?

You don’t need to be married or in a civil partnership to take out life insurance. There’s no legal requirement linking your relationship status to whether you can get cover.

If you're in a relationship, living together, or simply want to make sure someone you care about is financially protected, life insurance can still be a smart move.

While being married does give couples certain automatic legal and financial rights, being unmarried doesn’t mean you're left unprotected. It can help ease the financial burden if one of you were to pass away. Or it can provide ongoing financial support if you rely on each other's income.

Who does my life insurance go to if I'm not married?

When setting up a life insurance policy, you'll be asked to choose a beneficiary. This is someone who receives the proceeds from your policy. Most people tend to select their spouse, though you have complete freedom to name anyone as your beneficiary. It could be a partner, children, family member, or even a friend.

In the event of your death, the payout will go to whoever you have designated as your beneficiary. Therefore, you should make sure your choice aligns with your current wishes and financial goals.

What types of cover are suitable for unmarried couples

The same policies are available to unmarried couples as those available to married couples. The main types of cover include:

Term life insurance

Term life insurance covers you for a specified period, generally anywhere between 5-50 years. It’s often the most affordable option and could be a good choice if you want protection during a financially demanding period, like while paying off a mortgage or raising children.

For the policy to pay out, you must pass away within the term of the policy. If you outlive the term, the policy expires, and no payout will be made.

Whole life insurance

Unlike term, whole life insurance provides cover for your entire life, as long as premiums are paid. While it typically costs more, it offers the benefit of having a guaranteed payout, regardless of when you pass away.

Joint life insurance

Another option for couples is joint life insurance, which provides cover for two people under a single policy. This could be an ideal option for couples who share costs such as a mortgage or other significant expenses. It can even be used by business partners who might want to cover finances in case one partner passes away. age.

Joint policies pay out in two ways:

• First death: the payout is made after the first death in the couple. After this the policy ceases and the surviving policyholder will need to take out another policy if they wish to do so.
   

• Second death: the policy pays out once both policyholders have passed away. The payout will then go to the beneficiary of your choosing, such as their children.

Is it cheaper to get life insurance as a couple?

One of the key benefits of joint life cover is that it can potentially be cheaper than taking out single policies. With a joint policy, you’re both covered under one plan, which usually means lower premiums compared to buying two separate policies.

If you choose to take out single life policies, you may end up paying more overall, as each policy is assessed individually based on your health, age, and lifestyle. There's also the added admin of managing two separate policies, along with two sets of premiums to pay.

While joint policies can be more cost-effective, you need to consider your individual needs and what works best for your situation, especially if one of you has a pre-existing medical condition.

What happens if I split up with my partner?

It’s not a nice thought, but it’s always wise to have some kind of contingency plan in place in case your relationship ends.

If you have a single life insurance policy in your name, things are fairly straightforward. You can usually update your beneficiary or make other changes to the policy without needing your partner’s consent.

However, things can get a bit more complicated with a joint life insurance policy. Since both of you are covered under one plan, the policy is typically in both names, meaning you’ll both need to agree on any changes or cancellations. If you split up, you may have limited options:

• Cancelling the policy might be the only route, which could leave both of you without cover.
   

• Some insurers don’t allow you to ‘split’ a joint policy into two separate ones.
   

• If you keep the policy going, you’ll still be financially linked to your ex-partner, which may not be ideal.

Before taking out joint cover, it’s a good idea to check the policy terms and ask your insurer about what would happen in the event of a breakup. In some cases, it may make more sense for each of you to hold your own policy from the start, just in case.

How much cover will I need?

We all have different reasons for taking out life insurance, so the amount of cover you need will depend on your personal circumstances. There’s no one-size-fits-all answer, it really comes down to what you want the policy to protect.

For example, you might want enough cover to:

• Pay off a mortgage or shared debts
   

• Replace lost income to help your partner maintain their lifestyle
   

• Cover childcare or education costs if you have children
   

• Handle funeral expenses and other final costs
   

• Leave a financial gift or provide long-term security for your loved one

A good starting point is to think about what your partner or family would need to stay financially stable if you weren’t around.

Many people use a multiple of their annual income, such as 10 times the amount. But it’s worth reviewing your finances in detail, including any existing savings, benefits from your employer, or other assets.

Where to get advice

If you're thinking about life insurance but aren’t sure where to begin, there are a few simple ways to get started, depending on how much help you’d like.

If you already know what you need and feel confident applying on your own, you can get a quote and apply online, with cover arranged in as little as 30 minutes.

For those who would prefer a bit of help along the way, you can speak to one of our life insurance advisers who will guide you through your options and help you make an informed decision.

And if you have a medical condition, a hazardous job, or would just rather have tailored advice, we can recommend the most suitable and affordable policy based on your circumstances.

Whatever your situation, Cavendish Online makes it easy to find the right cover, with clear information, support when you need it, and some of the most competitive prices.