Many people have fallen for the myth that they do not need life insurance until they have wedded. That is a myth since life insurance can still be useful for some unmarried couples. They have to evaluate their situations to arrive at the right thing to do.
The advantages of life insurance for an unmarried couple include:
- Pregnancy – An unmarried couple will inevitably get pregnant whether planned or not. Plan for the future of your child by getting life insurance for them so that their future is protected if anything happens and you are unable to provide financially. There are life insurance policies that will serve your needs while pregnant.
- Love – You can take out a life insurance policy so that a loved one will not suffer needlessly if anything happens. Loved ones may include charitable organizations, a church, or volunteer institutions that may benefit from your life insurance policy.
- Children – Life insurance is a no brainer for you if you have children since you carry a financial obligation to the child’s wellbeing. In the situation that a partner dies prematurely, you will be in a position to take care of the child without financial problems. It is also important to buy life insurance for your children.
- Tied Assets – Consider life insurance, especially when making large purchases or taking on assets with obligations such as a mortgage to protect future cash flows. You will not be running into the risk of a lender laying claim on your asset and losing it due to defaulted repayments.
- Future Savings – A life insurance is a good opportunity to put away some savings. It is also cheaper to get life insurance at a younger age rather than waiting until old age. The earlier you can begin, the better for you. It’s always good to buy a policy that will serve you no matter when you choose to eventually marry.
You will need life insurance if you have a financial interest in each other. Unmarried couples will also acquire more and more property as the relationship grows and will often plan their future together. Additionally, ensure that you have decided in the ownership structure of the policy to have full control over the policy. You cannot be sure of what the future holds and it helps to be prepared for what it may throw at you.