Before making the important financial decision to take out life insurance on your spouse, it is advisable to consult with them to avoid making costly mistakes.
Lee Bromfield, CEO of FNB Life says insuring the life of your spouse involves more than just getting a policy. Every committed relationship and marriage is different and has a unique set of financial needs and obligations.
Couples should first reach a mutual understanding on the type of life cover, amount insured, provision for children or dependents, beneficiaries, as well as their broader financial responsibilities, to ensure that they are adequately protected in the unfortunate event that one of them falls ill or passes away.
Bromfield advises couples to avoid making the following mistakes:
- Not getting your partner’s consent
Get your partner’s consent before starting the process, as this improves transparency and removes the element of surprise when one partner gets a call from a provider to finalise the take-up process.
- Not being clear on what you both want
Couples predominantly take out life insurance for two reasons: to protect assets and to safeguard their financial future. Be sure of your reasons.
- Reluctance to seek financial advice
In some cases, couples may want to consider using the services of a financial adviser to get the real picture of their financial situation. Professional advice is very useful when a couple does not agree or are simply not sure about what to insure and for how much. An adviser will look at the finances of both partners and make recommendations on how to take up the most suitable type of insurance.
- Not keeping each other informed of any changes
Even though you may have consulted or informed your partner before taking out a policy, you still need to keep one another informed about important policy changes. You don’t want to learn after a tragedy that your partner changed the beneficiary!
Source: FNB. Image: Pixabay