![]() ![]() Whatever the outcome, it is a healthy conversation to have. It also means discussing long-term financial plans and by association the nature of your relationship. Having the conversation about life insurance is actually a way of expressing love and care for your partner. If your incomes are unequal, will you or your partner still be able to afford your lifestyle if one of those incomes disappears? This means the home loan will be paid off in the event of the death of the bondholder and the surviving partner won’t be left with a bond payment they can’t afford on their own, possibly having to sell the property and downsize. Many bond lenders insist on credit life insurance to cover the bond. But even in the absence of children, life insurance can be critical. ![]() Children, obviously, need to be provided for. ![]() If anyone depends on you, life insurance can be a real help if you pass away. Unfortunately, accidents and illness happen, and life can be cut short unexpectedly. Why do you need life insurance at all? If you live to a ripe old age, with all debts and home loans paid off, there may be little your surviving partner needs to pay for in the event of your death other than funeral expenses, and these can be covered via a funeral plan. Retirement planning caters for the former life insurance for the latter. The life insurance industry jokes that humans only have two problems: living too long and dying too soon. Death is also an uncomfortable subject, even though we will all die, eventually. Many people – women in particular – are afraid it will make them appear mercenary or greedy…only in the relationship for the money. Life insurance is often considered a difficult conversation to have. Arguably younger couples and those without children may be less likely to discuss their financial futures. The published survey results do not reveal the age breakdown of respondents. Further, 27% of people who are aware of their partner’s life insurance do not know its value and 34% of couples rarely discuss their long-term financial plans. Of these, 43% said there were no plans in place to ensure they are legally entitled to a pay-out. According to life insurer Scottish Widows, just over half of unmarried couples know if their partner has a life insurance policy. A survey conducted in the UK suggests that many unmarried couples with life insurance could be at risk of not receiving a pay-out on the death of their partner. ![]() There are steps they can take, such as entering into a universal partnership or drafting a cohabitation agreement, that will protect their legal rights should the relationship end, either by mutual agreement or death.īut one provision often overlooked by unmarried couples, particularly if they don’t have children, is life insurance – more specifically the beneficiary arrangements. However, unmarried couples lack the legal protections afforded to married couples or those in a civil partnership. Many couples choose not to marry, but are nonetheless committed partners with shared lives and shared resources. Sometimes our role is to help keep families together, or to help people navigate issues they may not even be aware of. But we are also family lawyers, and families come in many different shapes and sizes. We write a lot about the financial consequences of divorce, which is to be expected as we are divorce lawyers. ![]()
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