PROTECTION GUIDES
Life insurance to protect your partner
If you share a home, bills or plans with someone, make sure they would not be left struggling on their own.
The short answer
Life insurance can pay your partner a lump sum if you die during the policy term, helping with shared costs such as rent or a mortgage, bills and debts. It matters most where one partner relies on the other's income, or where you have taken on commitments together.
Married or not, it is important to set the policy up so the money goes to the person you intend.
Shared costs and financial dependency
Couples often build their finances around two people: a home chosen on two incomes, shared bills, joint loans or credit, and plans for the future. If one partner died, the other might be left paying for all of it alone.
The main things to think about are:
- •Rent or mortgage payments, and whether your partner could afford them on their own
- •Joint debts, such as loans or credit agreements, that the survivor may remain responsible for
- •Everyday household costs that would not halve if one of you died
- •Whether one of you earns much less, works part-time or has stepped back from work
If you share a mortgage, our guide to life insurance for a joint mortgage looks at that in detail.
Married and unmarried couples
Married couples and civil partners generally have some protection under the law if one dies without a will. Unmarried partners do not have the same position.
Worth knowing
A trust usually also means the payout can be made to the beneficiaries without waiting for the estate to be dealt with. We explain the options when we set up your cover, and our article on putting life insurance in trust covers the basics.
Blended families and choosing beneficiaries
Many couples have children from earlier relationships, or former partners they still support. Each of you may want different people to benefit, and in different shares.
Separate policies make this easier, because each person can choose their own amount and beneficiaries. For example, one partner might want part of their cover to go to their new partner and part to their own children. A single joint policy has one payout, which can make these wishes harder to meet.
Who it suits, and when it may not be needed
Who it can suit
- •Couples who rely on both incomes to pay the bills
- •Partners where one earns less or does not work
- •Unmarried couples who want to be sure the other would benefit
- •Blended families with different people to provide for
When it may not be needed
- •Each of you could comfortably manage alone, with no shared debts
- •Savings or investments would cover your partner's needs
- •Existing cover you expect to keep already protects your partner
How much cover, for how long, and what it costs
- •Your shared debts, and how long they will take to repay
- •The income your partner would lose and for how many years they would need support
- •Any children or other dependants either of you supports
- •Whether you choose a joint policy or separate policies
- •Each person's age, health, smoking status and occupation
We compare benefits and terms alongside price, and can show you joint and separate options together so you can see what the difference in cost buys.
Life insurance pays on death during the term, subject to the policy terms, and many policies include terminal illness benefit where the diagnosis meets the policy's definition. It does not help if either of you is unable to work through illness or injury. For that, look at combining life cover with critical illness and income protection.
Reviewing cover when your relationship changes
Life insurance does not update itself when your circumstances change. Marriage, moving in together, separation, divorce or a new partner can all mean the amount, the policy type or the beneficiaries no longer fit. If your policy is in trust, the trustees and beneficiaries may need updating too.
Our guide to reviewing your existing protection sets out what to check. Keep any existing policy in force until replacement cover has started.
Talk to us about protecting your partner
Tell us about your relationship, your shared costs and who you want to benefit. We will recommend cover and explain how to make sure the payout reaches the right people. There is no fee for our advice.
How CoverLife can help
CoverLife Insurance gives personalised protection advice, with a dedicated adviser for your application and ongoing support. We have access to a panel of 15 protection insurers, with availability varying by product and circumstances, and we compare benefits and terms alongside price. We also help with policy reviews and with applications involving medical conditions, unusual occupations or hazardous hobbies.
We charge no advice or arrangement fee; we receive commission from the insurer. CoverLife Insurance is a trading name of CoverTrade Risk Management Ltd, authorised and regulated by the Financial Conduct Authority, firm reference number 1020148. More about CoverLife
Related guides
The questions people usually ask next.
- Life insurance for a joint mortgageA closer look at joint versus separate policies when you own a home together.
- Life insurance for parentsIf you have children, their needs often shape how much cover you both need.
- Review your existing protectionWhat to check after marriage, separation or a new relationship.
- Combining life, critical illness and income protectionHow life cover fits alongside protection for illness and time off work.
Common questions
Can unmarried couples take out life insurance for each other?+
Yes. You do not need to be married or in a civil partnership. You can each take out a policy on your own life, or a joint policy, and choose who should receive the payout. For unmarried couples, making that choice clearly, often by using a trust, is especially important.
What happens to my life insurance payout if I have not named anyone?+
If the policy is not written in trust, the payout usually forms part of your estate and is passed on under your will. Without a will, the intestacy rules decide who inherits, and in England and Wales an unmarried partner does not automatically inherit under those rules. Naming beneficiaries through a trust, and making a will, helps the money reach the people you intend.
Should couples have joint or separate life insurance?+
A joint policy is usually a little cheaper but pays out once, on the first death, and then ends. Separate policies can each pay out and let you choose different amounts, which can suit couples with different incomes or children from previous relationships.
What happens to our life insurance if we split up?+
Separate policies stay with each person, although you may want to change who benefits if the policy is in trust. A joint policy is harder to divide, and you may need to agree whether to keep it, cancel it or replace it. It is worth reviewing your cover as part of any separation.
Do I need life insurance if my partner earns enough to manage alone?+
Perhaps not. If your partner could meet the household costs and any debts on their own income, and nobody else depends on you, life cover may be a lower priority. It is still worth checking what would happen to shared debts and to any children.