Protecting your Partner
Lack of protection leaves cohabiting couples exposed
There’s a lot of good reasons why some couples choose not to marry. Known as cohabiting couples (living together but not married), the total number in the UK has risen by 144% since 1996. Unfortunately, many of the laws in the UK leave cohabiting couples with less protection compared to married couples and this can especially become problematic in the unfortunate instances of somebody dying. For example, you have no automatic rights if your partner dies without a will in place, which makes it even more important to ensure you have adequate financial plans – and that you share details of what those arrangements are with each other.
Conversations about money are not easy at the best of times and even amongst those who are more financially savvy, there is room for improvement. A survey of cohabiting people found that 43% have made no plans to ensure their other half receives a pay out if they die. 52% of unmarried adults, who are in a relationship, don’t know whether their partner has a life insurance policy and amongst cohabiting couples who do know that their partner has life insurance, 27% are unaware of the value of the policy. In other words, they don’t know the extent of how much they’d be financially supported if they lost their partner.
Life insurance isn’t the only protection area to think about, it’s worth considering the financial practicalities if one of you was to be unable to work due to serious illness, injury or if you lost your job. Having protection plans in place won’t reduce the potential of such unfortunate incidents occurring, but they will offer greater financial security.
Of course, it’s not just unmarried adults who need life insurance. If you have people who depend on you – a partner, children, even grandchildren – having suitable protection plans in place will help them to be financially supported should the worst happen.
Having a life insurance policy provides your partner and family with a lump sum of money to look after their future. It can help protect from the potential financial struggle of going without your income, provide financial security, and help to pay off any debts. It’s something that could really help your loved ones during a very difficult time.
These are very difficult scenarios to think about, but they are even more difficult things to go through without having protection in place. For this reason, it’s a good idea to speak openly with your partner (married or cohabiting) about the what-ifs – and what you could do to prepare. Even if they prove to be arrangements you never have to fall back on, just having them can offer you greater peace of mind about the future.
Whatever your situation, putting protection plans in place is a sensible approach. There’s a lot to consider and getting the right cover is important, so speaking to an adviser is strongly recommended. A Financial Adviser can explain how potential options work and present the most appropriate solutions for your circumstances and with the right protection plans in place, you can feel more confident about your financial capacity to cope with whatever life might throw at you.
* Insurance which is based on an assessment of the health of the applicant is unlikely to cover the applicant for previous or existing medical conditions. It is recommended that applicants should refer to policy documentation and seek advice in order to understand what the policy does and does not cover before making an application.
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