The Different Types of Life Insurance Options in Brampton for Couples
If you are hunting for a couples’ life insurance policy in Brampton, there are broadly two types of plans you can get:
- Single Life Insurance plan,
- Joint Life Insurance plan.
Both of these plans comes with their pros and cons. Let us take a quick look at them all before you choose the best couples’ life insurance plan for your family.
Single Life Insurance
When purchasing life insurance as an individual, both you and your partner apply for and pay for your own policy. If one of the applicants die, the death benefits are paid out to the beneficiary.
So, why do some couples prefer to purchase individual life insurance policies? That is because of the major benefits associated with it, such as:
- Having the option to purchase different coverage length and amounts: With individual life insurance plans, you have the freedom and flexibility to choose different coverage length and amounts. This makes total sense if your financial contributions vary.
- Coverage for a longer period of time: If one of you die, the other member’s policy will continue to cover you until the policy expires.
- Simpler division if needed: If you and your partner get divorced, you don’t have to split your coverage into two separate plans. Each of you will continue to be covered separately by your individual policies.
On the downside, flexibility comes with a cost. You will have to pay more to buy two individual life insurance policies than to buy one joint life insurance policy.
Joint life insurance
If you are married or in a common-law relationship, you may choose to purchase a joint life insurance plan instead of getting two individual policies.
A joint life insurance policy is a single policy that covers both you and your partner. Depending on your policy type, your death benefit is paid when the first member dies (a policy of the first to die) or when both are deceased and paid to a different beneficiary, such as children (a policy of the second to die).
When you buy joint life insurance, your premiums will be comparatively less in comparison to individual policies. If you are young and relatively healthy, the cost difference may be minimal.
Joint life insurance comes with a certain set of benefits as well as limitations like:
- Same schedules: You don’t have to worry about keeping track of life insurance plans at different coverage times. With joint life insurance, the amount and duration of coverage will be the same for you and your partner.
- Surviving Partner Coverage: With a first-to-die policy, the surviving partner is not covered after the death of their partner. And depending on the age of the surviving member, the purchase of a new life insurance policy could be expensive.
- Possibility of increased life insurance premium rates in future: If your relationship comes to an end before death, you will need to apply for a new life insurance policy. Life insurance is typically more expensive as you age.
So which one should you go for?
If you need to minimize costs as much as possible and are eligible to apply for joint life insurance coverage, buying a joint life insurance plan makes sense.
But if it’s more important to you to have strong, flexible life insurance coverage for a longer period of time, individual life insurance policies might be the better option.
Talk to our life insurance advisors to know which option suits you the best depending on your budget and goals. We provide zero fees and zero obligations consultation – get in touch with us today!