Can I Get Life Insurance on My Partner?
When you first hear the question, “Can I get life insurance on my partner?” you may wonder why someone would want life insurance for partners. The truth is, today’s social climate makes it a necessity for some.
In 2015, 50% of Americans were married – today, that number is 45%. Instead of marrying, more and more people are choosing to live together – and that’s why so many people are interested in life insurance for couples.
Can I Take Life Insurance Out for My Partner/Boyfriend/Girlfriend/Fiancée?
The short answer is: Yes, you can get life insurance on a boyfriend or life insurance on a girlfriend. Of course, the longer answer is a bit more complicated.
When someone researches “life insurance for my partner,” they are often looking for life insurance for their spouse. And for insurance companies, it’s easy to understand why someone would need financial protection in case their spouse passes away. But when people are cohabitating, it becomes more difficult. To overcome this burden, you will have to jump through a few more hoops when buying life insurance for someone you’re not married to.
Insurable Interest
To take out an insurance policy on your partner, you have to show the insurance company that you have an insurable interest. In other words, you have to prove that you have a credible interest in insuring them. Why is it important that you have a life insurance policy on their life? Will your financial circumstances be affected if they were to pass away?
If your partner’s earning potential impacts your life, you will have to prove it to the insurance company. Some of the financial reasons why you may have an insurable interest with your partner are:
- Both of your names are on the lease where you both live
- You own a home together
- You own a business together
- You have joint debt
- You have children together
Consent
In addition to proving that you have an insurable interest, you will also have to get consent from your partner to take out an insurance policy on their life. Your partner will have to sign a consent form that gives you permission to take out the policy. In fact, if you take out a policy without first getting a consent form, it may be considered insurance fraud.
In addition to the consent form, your partner may have to undergo a medical exam if the type of policy you want requires it.
How To Buy Life Insurance for Your Partner
If you have decided to buy a life insurance policy for your partner, you need to understand the ins and outs of how to go about it.
The first consideration is cost. The type of life insurance policy, the sex of your partner, your partner’s age, and your partner’s health will all determine how much you will pay. Some of your options are:
| TYPES OF LIFE INSURANCE POLICIES | |
| TERM LIFE INSURANCE | This is the least expensive type of insurance policy, but the downside is that it expires after the term ends. |
| WHOLE LIFE INSURANCE | This is the most expensive type of life insurance because it never expires and the premium never changes. |
| FINAL EXPENSE LIFE INSURANCE | This type of policy is considered a happy median because it is a whole-life policy with a smaller face value, making it affordable. |
Situations Where Insurable Interest May Be Challenging
There are some circumstances where you may not qualify to purchase a life insurance policy for your partner. For example, if you’ve only dated for a short period, you won’t likely be able to take out a policy. If you don’t live together or are not financially dependent on each other in your daily lives, you also will have a difficult time taking out a life insurance policy. In short, you will only be able to purchase a policy if you can prove that you rely on your partner’s income and have been for some time.
How To buy Life Insurance for Your Fiancée
When you’re engaged to be married, there are many reasons why you may want to get life insurance on your fiancé. For example:
- You need a bigger place to live. There are two of you, and you may have children, and a larger home means your rent will be higher.
- You likely have joint debt, and that means you are responsible for your partner’s debt if they pass after you are married.
Situations Where Insurable Interest May Be Challenging
Because most insurance companies view being engaged as more of a commitment than a domestic partnership, you will have an easier time getting life insurance on your fiancée. But some insurance companies will require proof of your engagement such as a marriage date. They may also ask for other things such as a receipt for the reception hall, the church booking contract, or a copy of your wedding invitation. Other insurance companies may not ask you for this proof.
Alternative Options
There are easier ways to get life insurance for your partner if you don’t want to jump through the hoops required by insurance companies.
Be a Beneficiary on Your Own Policy
If you want to ensure that your partner is taken care of financially if you develop a terminal illness or require long-term care, taking out an insurance policy and naming yourself as beneficiary is a smart move. You will need to purchase a policy with living benefits.
These types of life insurance policies require the beneficiary’s doctor to issue a statement about the health of the beneficiary. Once that is done, the beneficiary can access some or all of the cash value of the policy. As the beneficiary, you can then give the money to your partner to take care of you while you’re sick. And if you pass, they will have already the money they need to live.
Estate Beneficiary
Another easy way to ensure that your partner is taken care of financially after you pass is to name them as the beneficiary on your life insurance policy. You can designate anyone to be the beneficiary of a life insurance policy, and doing so allows you to provide for your partner without having to jump through the hurdles that unmarried couples face.
Which Policy Is Right for You?
If you want a life insurance policy that will simply pay for your funeral and any outstanding debt, a final expense policy may be the right choice. These policies can be an affordable option for those who don’t want to invest in an expensive whole-life policy with a large cash value.
If this type of policy sounds right for you, request a free quote from Lincoln Heritage. You could have an insurance policy on your partner sooner than you think.