Term life insurance pays a death benefit if the person insured dies within a specific period of time or before they reach a certain age.
The length of your coverage can be either for:
a fixed period of time, such as a term of 10 or 20 years
until you reach a set age, such as 65 years old
When considering buying life insurance as a couple, look at what coverage you may already have through your employer or that you may have bought when you were on your own.
If you decide to purchase insurance, make sure you consider all the options available to you as a couple. Make sure to consider the pros and cons of each.
Insures two people under one joint policy
Pays the death benefit when the first partner dies
Gives each partner the same coverage
Is usually less expensive than two identical single policies
Is sometimes less flexible than single policies if the couple separates or gets divorced
Usually can't be divided
Usually pays only one death benefit, so if one partner dies, the other needs to apply for a new policy to continue coverage
Provides each partner with their own policy
Gives each partner their own coverage amount
Is usually more expensive in total than a joint first-to-die policy
Makes it relatively easy to change the beneficiary, if you separate or divorce