Here are some considerations regarding life insurance for couples:
Joint policy or separate policies: Couples can choose to have a joint policy that covers both of their lives, or they can choose to have separate policies that cover each individual's life. A joint policy may be less expensive than two separate policies, but it may also have limitations and restrictions that affect both spouses. On the other hand, separate policies may offer more flexibility and tailored coverage to each spouse.
Beneficiary designation: The beneficiary is the person or entity that receives the death benefit payout if the insured person dies. Couples can choose to name each other as the primary beneficiary or name someone else, such as a child or a trust. They can also choose to name secondary or tertiary beneficiaries, in case the primary beneficiary predeceases them. It is important to keep the beneficiary designation current and up-to-date with any changes in the couple's circumstances.
- Policy ownership: The policy owner is the person or entity that has the right to make changes to the policy, such as changing the beneficiary or coverage amount. Couples can choose to own their own policies or have joint ownership of a policy. If one spouse owns the policy, they have full control over the policy and can make changes without the other spouse's permission. Joint ownership means both spouses have equal rights to the policy and must agree on any changes made.
To tie all these together, each party should make a Will naming their partner as the sole beneficiary of the property.