Life Insurance for Same-Sex Couples
According to a study in June of 2017, 10.2% of LGBT adults are now married to their same-sex spouse. However, many same-sex couples are in unmarried, long-term partnerships.
Life insurance is essential in preparing for your financial future, no matter what your family status. Life insurance can help the surviving partner maintain their standard of living, replace lost income, and stay out of crippling debt.
Unmarried couples need to take special care when planning their finances and preparing for the future. Choosing life insurance to fit your situation can give you peace of mind should the unexpected occur.
The longer you wait to get life insurance, the higher your rates will be. While the process can seem daunting, purchasing life insurance can actually be simple. There are different types of plans available, making it easy to find the best life insurance fit for you and your family.
The most common life insurance plans are term life insurance and permanent life insurance.
Term Life Insurance
Term life insurance will pay out a benefit upon the death of the policyholder if that death occurs during the policy’s term. This benefit is usually used to provide income replacement to cover short-term needs such as paying for a child’s college education or paying off a mortgage.
This type of insurance policy is a temporary insurance protection for a set period (often purchased in 5, 10, 20, 25, and 30 year increments) and can be one of the cheaper forms of life insurance. A medical exam with lab work is usually required. As you might expect, those in good health typically pay less for coverage than those with health issues.
Permanent Life Insurance
Permanent insurance provides lifelong protection and the ability to accumulate cash value on a tax-deferred basis. A permanent insurance policy remains active for as long as you continue to pay the premiums.
There are a few times of permanent life insurance:
- Whole life insurance: offers the greatest amount of safety and security in exchange for higher premiums.
- Universal life insurance: a permanent policy that allows you the flexibility to customize the coverage and premiums.
- Final expense insurance: an affordable way to provide the financial resources necessary to cover funeral costs and other final expenses and outstanding debts.
No matter which type of insurance you choose, there is comfort in knowing that your loved ones are protected when they need it the most.
The opinions voiced in this material are for informational purposes only and are not intended to provide specific advice to any individual. This information is not intended to be a substitute for individualized tax, legal, or investment advice. We suggest that you discuss your particular situation with a qualified tax, legal, or financial advisor.