Couple life insurance: How does it work and is it worth it?

Is it worth hiring couple life insurance? How does it work?

Building a life together involves sharing moments, responsibilities, and, of course, financial stability.  

Life insurance for couples is a way to ensure mutual protection, ensuring that, in case of death or disability of one of the partners, the other does not remain financially unprotected.  

But is it worth opting for a joint insurance or is it better to contract individual policies? In this article, we explain how it works, the advantages, and what they should consider before making a decision.

How does a life insurance for couples work?  

Couple life insurance is similar to a traditional life insurance, but it can take on different forms.

• Individual policy for each person: Each partner purchases a separate life insurance policy, with personalized values and coverage.  

• Joint policy with independent capitals: Both are covered under the same contract, but each has their own capital and the insurance pays the compensation to the designated beneficiary if one of the two dies;

• Joint policy with shared capital: There is a single insurance capital, paid to the survivor if one of the two should die.

The most common is the joint policy, especially for couples with a mortgage loan or other shared financial responsibilities.

Main advantages of joint life insurance.

✅ Greater financial security - In case of death or disability of one partner, the other receives an amount that can help pay expenses such as loans, children's education, or daily expenses.

✅ Potentially lower premiums - Some insurers offer more competitive prices for joint policies instead of two separate policies;

Ease in management - having only one insurance policy can simplify payments and documentation. ✔️

Greater peace of mind - Knowing that, whatever happens, your partner will be protected. ✔️

Are there disadvantages to this joint insurance?

Although there are benefits, it is important to consider some aspects before taking out a joint life insurance policy:

❌ Shared capital can be a problem - If you opt for a policy with a single capital, the payment will only be made once, unlike individual policies, where each partner has their own insured amount;  

Less flexibility in case of separation - If the couple separates, it may be more difficult to adjust the contract or cancel the policy.

Different risk profiles - If one of the partners has a more complicated clinical history, it can affect the cost and conditions of insurance for both.

Life insurance for housing credit: Together or separately?

If you are buying a house together and need life insurance associated with your mortgage, you should analyze whether a joint policy or individual policies are more beneficial.

The joint insurance can be cheaper, but the bank only receives one payment in case of death of one of the policyholders. Meanwhile, individual insurances are covered separately, ensuring that the loan is paid in full if one of the two is missing.

Each couple must analyze the best option according to their financial situation and long-term goals.

How to choose the best life insurance for a couple?

1. Compare offers - Not all insurers offer the same conditions. Analyze prices, coverage, and exclusions.

2. Evaluate the safe capital - The amount should be sufficient to cover loans and ensure the financial stability of the partner.

3. Check the additional coverages - Some policies include protection against total and permanent disability, which can be useful if one of the partners becomes unable to work;  

4. Consult an insurance mediator - An expert can help find the best solution for the couple.

For this purpose, the Savings in a Minute is an insurance broker that helps you ensure the best conditions for joint or individual insurance, through a quick and cost-free process, which supports you throughout the process. The agents handle all the bureaucracy, communication with insurers, comparison of proposals, and selecting the right one, with the necessary market experience and transparency in this process. Simulate your new life insurance now:.