By Erin Pepler on June 6, 2022
Estimated reading time: 5 minutes

Term life insurance for couples—should you apply jointly?

By Erin Pepler on June 6, 2022
Estimated reading time: 5 minutes

Protect each other (and your kids) from financial hardship by applying jointly for life insurance for couples.

Mom, dad and two young kids smile at the camera

Photo by Vanessa Loring from Pexels

When couples move in together or get married, it often leads to another relationship milestone: combining finances for the first time. This includes sharing household expenses, and it may involve getting a joint bank account, splitting rent or even buying a home together. But there’s one more key element many couples overlook: life insurance.

Getting life insurance with your spouse or partner is an opportunity to protect each other from unexpected financial hardship if one of you passes away. This doesn’t necessarily involve a joint life insurance policy—just a coordinated effort when applying for individual coverage. Here’s why it makes sense for couples to apply for life insurance together—including the potential to save money on your premiums.

Why couples need life insurance

Almost everyone needs insurance, but we all have unique insurance needs. When you get married or combine finances with a live-in partner, it’s important to find insurance policies that protect not only your home and vehicle but also your income, partner and family. This typically includes life insurance, which is available in both term and permanent life options. Term life insurance is the best fit for most Canadians, while permanent life insurance, which includes whole and universal policies, is best for those with complex estate-planning needs.

Life insurance is appropriate for many Canadians, but it’s most important if you’re in a long-term relationship, you and your partner have significantly different income levels or you have dependents such as children. Having life insurance protects your loved ones from financial hardship and allows them to maintain their lifestyle, pay off a mortgage or deal with other outstanding debts.

Think of it this way: if your family were to lose you, the last thing you’d want is for them to worry about paying the bills or to have to move to a cheaper place. Life insurance for couples prevents financial stress at an already difficult time, providing security and allowing your family to focus on coping without you. By listing your partner as your primary beneficiary, you’re essentially providing them with a safety net. And if both of you were to pass away, your respective beneficiaries would be provided for.

What to consider for couples life insurance

You wouldn’t buy shoes marked one-size-fits-all, and shopping for life insurance is similar—it has to be the perfect fit. When looking at life insurance coverage as a couple, it’s important to address what each person needs and doesn’t need.

Let’s imagine a couple in their mid- to late 30s with two young children. If one parent earns a substantial salary while the other stays home to manage the household, the primary income earner likely needs a policy with a much higher value than their partner. In other cases, a couple’s life insurance policies will be more closely matched.

In addition to your income and relationship status, the level of life insurance coverage you need will depend on your age, debts and assets, and whether or not you have children or other dependents to provide for.

Single vs. joint life insurance

Here are the pros and cons of having a joint life insurance policy versus separate life insurance policies:

Insurance type	Pros	Cons
Joint life insurance: Covers both partners under one policy and pays benefits if one partner dies	• Typically more affordable than separate policies • If spouses divorce before the coverage expires, they have several options for the policy, including transferring it to one spouse, naming each other as beneficiaries to manage funds for their kids if one spouse dies, and more	• Partners have the same coverage amount and length, regardless of income and other personal details • If one partner dies, the policy ends, and the surviving partner will need to buy new insurance—possibly with higher premiums due to age and/or health issues
Separate life insurance: Each partner has their own policy	• Independent policies offer flexibility, as well as the opportunity for robust coverage • Each partner can choose different policy terms and coverage amounts based on their needs • If one partner dies, the other partner still has insurance coverage	• Often more expensive than a joint policy

Best term life insurance policies for couples in Canada

Term life insurance for couples is available from large insurance providers. PolicyMe is an online life insurance solution backed by insurance giant Canadian Premier. It offers some of the most affordable term life insurance premiums in Canada, plus family-friendly features including:

5% discount for couples who submit their applications together (this requires less administrative work than separate applications, so PolicyMe passes the savings on to you)
Free $10,000 child coverage for every policy
Simple online application process you can do together in 20 minutes or less (on average, for eligible applicants)
Access to licensed, non-commissioned advisors seven days a week via phone, email and chat to give customized advice.
Choose from $100,000 to $5 million in coverage, and terms from 10 to 30 years

To create personalized term insurance policies, PolicyMe assesses individual and household needs and provides comprehensive, transparent recommendations that make sense for your family. Your life insurance policy and your partner’s policy won’t necessarily be the same—for many couples, they aren’t—but they will be tailored to your income, budget, lifestyle and needs as a family. It typically takes only 20 minutes to apply, so you can fit it into your busy schedule. Rates go up as you grow up, so get an online quote for life insurance today.

How to apply for couples life insurance

If you’re ready to take the next step and start exploring insurance options as a couple, you can start the application process online. About half of eligible applicants are approved instantly.

Getting life insurance may not be the most romantic part of starting your new life together, but it’s one of the most important things you’ll do as a couple. Congratulations on the next chapter!

This article is sponsored.

This is a paid post that is informative but also may feature a client’s product or service. These posts are written, edited and produced by MoneySense with assigned freelancers.

About Erin Pepler

Erin Pepler is a freelance writer based in the Toronto area. A frequent contributor to MoneySense, she is also the author of Send Me Into The Woods Alone: Essays on Motherhood.