Insurance can help married couples prepare for medical expenses and save for education and retirement. But should you get individual policies, or one policy that provides joint coverage?

Get the information you need to make the best choice for your needs. We’ll talk about joint life insurance for married couples, how it differs from other types of insurance policies, and what you should consider when you’re buying insurance with partners.

Why do married couples need life insurance?

Unexpected changes or crises can affect your income and expenses. If you get sick, you face large medical bills and may need to temporarily stop working while you recover. If a catastrophic typhoon hits your area, you could lose your home and belongings overnight.

Insurance helps you manage those financial risks. Health insurance can cover medical bills. Home and car insurance can pay for repairs, losses and liabilities.

Life insurance for married couples addresses the worst possible scenario: the sudden death of you or your partner. The death benefits can cover immediate costs like funeral and burial expenses and fund the family’s living expenses. It can also be used to settle debts from joint loans or credit cards.

It’s unpleasant to think about these scenarios. However, life insurance is like wearing a seatbelt or keeping a fire extinguisher in your home. Hopefully you never have to face a situation that requires it, but you have taken all the steps to protect yourself and your family.

Perfect for couples who are just starting out, PamilyaProtect can provide protection starting from just ₱417 a month. Both you and your partner can get life insurance benefits, accidental coverage and daily cash benefit in case of hospitalization.

Common reasons why couples get life insurance

Anyone can benefit from having an insurance policy. However, you may have personal circumstances that make your family financially vulnerable if you or your partner pass away prematurely.

• You are the primary breadwinner. Your income is the main source of funds for all your family’s needs.
• You have several dependents. You may support young children, elderly parents or other members of your extended family.
• You have a higher risk for critical illness or injury. Risks can include your family health history, or hazardous jobs or hobbies.

Many insurance plans go beyond health and death benefits. They have savings and investment components, so the policy accumulates cash value over time. These funds can be withdrawn to pay for college education or other family goals.

These insurance policies can help you achieve financial goals, alongside disability and death benefits. So, when you’re choosing a plan, don’t just look at how you can protect your family after you’re gone. Consider how it can help you achieve your dreams and provide a better quality of life right now.

• You can plan for big expenses, like the downpayment of your first home.
• You can build your child’s education fund.
• You can create an alternative source of funds in case you temporarily lose your job or one of you decides to be a stay-at-home parent.
• You can plan for retirement.
• You can invest your money without the hassle of having to monitor stocks, bonds or other investment tools yourself.
• You can prepare a legacy for your children.

Differences between personal and joint life insurance for married couples

• Coverage. Personal or individual life insurance policies cover a single person. You can name beneficiaries but the benefits only take effect if anything happens to you, the policy owner. Joint life insurance covers two people, such as married couples or domestic partners. You pay one premium but get a broader umbrella of protection.
• Types of benefits. Most people get personal life insurance, so you’ll find a lot more options with different benefits and coverage. Some plans cover medical expenses or temporary or permanent disability, while others may have an investment component with scheduled payouts. On the other hand, joint insurance policies typically focus on death benefits and providing financial support for the surviving partner and your kids.
• Price. It is generally cheaper to get joint or spouse life insurance rather than taking out separate policies. While your plan may not include medical or hospitalization benefits, you may get larger death benefits for the same monthly premiums.

Types of joint life insurance

Joint insurance policies will only have one pay-out. You can choose when the benefit is received: the first or the second death.

·        First-to-die life insurance. The surviving spouse is the beneficiary and receives a lump sum that can be used to support the family. However, this fulfills the policy conditions, and they no longer have any remaining insurance coverage.
·        Second-to-die life insurance. The beneficiaries are the children, and the benefits are paid after the second spouse passes away. It is sometimes called survivorship life insurance.

First-to-die life insurance is typically used to protect the family’s financial security if one parent or spouse passes away. This may be beneficial for couples with dependents, such as children or elderly parents, who rely on them for daily needs.

Second-to-die life insurance assumes that the surviving spouse can support the family even without an insurance payout. It is typically used for estate planning. Insurance benefits aren’t subject to estate tax and can help address immediate financial needs while other inheritances go through probate (the legal process for validating a will).

Second-to-die life insurance can also make it easier to transfer assets to a non-relative, charity or a family trust. You and your partner can discuss beneficiaries beforehand and ensure that your wishes are carried out even when both of you pass away.

Factors to consider while choosing your family insurance policy

Ideally, both you and your partner should have insurance coverage. You just need to figure out what plan can best meet your needs and whether you should get individual or joint life insurance for married couples. Here are some questions that can guide your conversation.

• What is the purpose of the plan? Will you be using insurance for financial protection for specific risks (like medical bills or sudden death), savings or estate planning?
• How much can you afford? Review your household budget and calculate how much you can set aside for insurance premiums. Luckily, there are many affordable life insurance plans in the Philippines that you can choose from. Some plans also allow you to adjust your premiums when your family income increases.
• What is your family situation? Are you a single or dual income household? Do you have kids, and how many years will they be dependent on you? Also look at long-term factors. For example, do you anticipate taking care of your parents when they are older?
• Do you have any personal risks that can affect your premium? Your age, health history, or a hazardous job or lifestyle can affect the cost of your insurance plan. If you or your partner have significant risks, you may want to consider separate insurance policies.

Consult with a Bancassurance financial advisor

Once you have identified your insurance needs, you can ask a Bancassurance financial advisor to provide options.

BPI AIA has several types of plans that can be used to protect your family. Family Care Plus is joint insurance for married couples. The policy covers 10 critical illnesses, diabetic complications, coronary artery disease and death. There are also other personal insurance plans with high value insurance coverage – for example, the Life Extreme Protect provides a lump sum death benefit of up to 96 times your basic annual premium.

To consult with a Bancassurance financial advisor, drop by any BPI branch or set an appointment through the quick online form.