Advice matters
Life as a couple: do you need personal insurance?

Have you tied the knot or are you planning to? Or maybe you’re in long-term relationship and planning life together? You may want to include personal insurance in your ‘money talks’.

Here’s why, when, and how couples can take out cover to protect their shared future.

Why consider personal insurance?

Settling down with someone means sharing your life journey with a partner. You may opt for joint bank accounts, make investment plans together, and save for big goals – like starting a family and buying your first home.

This life you’re building is worth protecting. And that’s where personal insurance comes in. Be it life insurance, income protection, health insurance, trauma cover or more, it’s all about building a robust financial safety net for today and tomorrow.

For couples with children and/or high levels of debt (like a mortgage), having an appropriate level of cover becomes all-the-more crucial. So, let’s see what types of insurance are available out there.

Personal insurance types to consider

Life is full of unpredictable circumstances – many of which are not pleasant to think about. But it’s those things that can have a sudden and significant impact on your finances. If you’re looking for protection, here are some personal insurance types available:

  • Life insurance: This is perhaps the most common form of personal insurance. Life insurance provides a lump-sum payout in the event of one partner’s death or diagnosis with a terminal illness. This can help ensure that the surviving partner and any dependents have the necessary funds to manage debts, day-to-day expenses, and long-term financial goals.
  • Income protection insurance: What if an injury or illness prevented you or your partner from working for an extended period? Income protection can step in by replacing part of the lost income, so you can still meet regular expenses like rent/mortgage payments, utilities, groceries, etc. Click here to learn more.
  • Health insurance: Medical issues can come without warning, and sometimes to get better you only have two options: wait in the public healthcare system or pay for private healthcare. Health insurance can give you access to private care and diagnosis, ensuring you can get premium, timely treatment without having to pay for the whole treatment out of your pocket. Click here to learn more.
  • Trauma cover: This powerful protection tool provides a lump-sum payment if the insured person is diagnosed with one of the qualifying critical illnesses or medical events listed in the policy. Covered conditions often include heart attacks, certain cancers, and strokes. The lump sum payment can help cover medical bills, therapy costs, and other related expenses – or anything else you might need, it’s up to you. Learn more here.
  • Mortgage protection insurance: For many couples, a home is the most significant financial commitment. Mortgage protection insurance can mean that even if illness, injury, or death means a loss of income, mortgage repayments can still be met, so your family’s home remains secure.
  • Total and permanent disability (TPD) cover: In situations where an injury or illness results in a permanent disability preventing work, TPD offers a lump-sum payment. This can help you cover medical costs, make necessary modifications to the home, and maintain a quality of life.

As you can see, different types of cover protect your financial future in different ways. Depending on your situation and budget, you can mix some of these up to create a comprehensive insurance plan.

Not quite sure where to start? Get in touch. We can help you craft a balanced insurance plan that maximises protection at a price you can comfortably afford.

When to get cover

There’s no one-size-fits-all when it comes to the right time for couples to get insurance. Some might consider it before marriage, some when they buy their first home or welcome their first child.

The key thing is to take a closer look at your financial situation and the most likely risks you may face. For example, how long would you and your partner (plus any dependents) survive if you suddenly lost your ability to work? What would your family’s housing needs be if you were no longer there to provide?

Over time, it’s also important to stay on top of your cover: as your circumstances change, make sure you regularly revisit your insurance plan, to ensure that it aligns with your current needs.

Like to talk?

Get in touch with a SHARE adviser today. Whether you’re just starting your journey as a couple or looking to strengthen your existing ‘safety nets’, we can help you explore your options.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.