Life Insurance Guide for Unmarried Couples (2024)

Many people think you have to be married to obtain life insurance for your partner but coverage from the best insurance companies is available for unmarried couples. Understanding life insurance for unmarried couples will help you determine if you qualify for coverage.

For those interested in life insurance rates for unmarried couples, enter your ZIP code to find the best life insurance quotes in your area.

Why do you need life insurance for unmarried couples?

There are various reasons why a couple might cohabitate before marriage. They might be waiting to create a stronger financial situation or want to try living together before making a longer commitment. However, the living situation might be similar to being married.

Many couples share a mortgage, car payments, and other bills over a period of time. Should one of the partners unexpectedly die, it would force the surviving partner to cover these payments on their own. Life insurance provides funds to help the unmarried partner cover these unexpected payments.

Being proactive in your financial decisions is a good way to protect yourself from unforeseen situations. If you’re still unsure if you need a life insurance policy, a life insurance guide can help.

How much is life insurance for unmarried couples?

The amount you pay for life insurance for unmarried couples depends on your age and the type of insurance you purchase. The following charts show the difference between a $500,000 20-year term life and whole life plan based on age and gender.

Average Annual Life Insurance for the Unmarried Couples Rates: Male $500,000 20-Year Term Life and Whole Life Policies

The following chart features the same information for females.

Average Annual Life Insurance for the Unmarried Couples Rates: Female $500,000 20-Year Term Life and Whole Life Policies

As you can see, term life rates are lower than whole life rates, and female rates are lower than male rates.

What is needed to buy life insurance for unmarried couples?

The most important factor in obtaining couple life insurance coverage is an insurable interest. This means that a person’s financial situation will be significantly impacted by the absence of their partner. Most life insurance companies will require evidence of this hardship.

Examples of insurable interest that can help you obtain life insurance for unmarried couples include:

• Both individuals being named on a lease
• Jointly owning home or business
• Debts naming both individuals
• Having children

The second consideration is the consent of the other partner. The person being covered must consent to life insurance before a purchase can be possible. For this reason, it’s usually easier to cover both people and name the other person as the beneficiary.

If you’re not sure who you would like to be the beneficiary of a policy, the Insurance Information Institute provides information on who is eligible to be a beneficiary.

While it’s more difficult for an unmarried couple to obtain coverage than a married couple, it’s much easier than it once was. Life insurance providers understand that many couples prefer to remain unmarried while being financially dependent on each other.

What are the life insurance for unmarried couples categories?

The best way to determine if you’re eligible for affordable life insurance for unmarried couples is to identify which category you fit into. There are four different unmarried partnership categories used by life insurance companies to determine eligibility.

Registered Domestic Partnership

A registered domestic partnership is a legal agreement between two partners in a relationship that awards legal rights to married couples without getting married. This includes insurance coverage and guardian designations.

Most life insurance companies treat a registered domestic partnership as a marriage. If you qualify, life insurance for domestic partners is a an important investment to consider. However, it’s important to note that this designation differs by state, so a lawyer’s assistance is often needed to determine what benefits can be obtained.

Couples That Live Together but aren’t Domestic Partners

A domestic partnership is defined as a legal agreement between the two people in a relationship. Many couples live together but are not legally in a domestic partnership. However, this doesn’t mean that they can’t obtain life insurance coverage on each other.

A life insurance company for unmarried couples will require that those in this type of relationship prove insurable interest. This can be a shared mortgage, rent, car payments, or other bills.

Couples That Don’t Live Together and Aren’t Engaged

In most cases, a couple needs to live together to purchase life insurance for unmarried couples because they need to be financially dependent on one another. Those who don’t live together will find it hard to obtain coverage because they must prove financial obligation together.

Insurance companies don’t consider future plans to be financial reliability so plans to become engaged won’t factor in the decision.

Engaged to be Married

Life insurance companies consider a couple married once they’re engaged with a wedding date set. Virtually every life insurance provider will cover these couples, making them the most likely to receive life insurance for unmarried couples.

Case Studies: Life Insurance Guide for Unmarried Couples

Case Study 1: John and Sarah’s Financial Protection

John and Sarah have been in a committed relationship for several years but are not married. They have joint financial obligations, including a mortgage and car payments. They realized the importance of having life insurance to protect each other financially in the event of one partner’s death.

John and Sarah decided to apply for life insurance individually but included each other as beneficiaries. They provided evidence of their shared financial responsibilities, such as the mortgage and car loan documents.

Both John and Sarah were approved for life insurance coverage and now have the peace of mind that their partner will be financially protected if anything happens to them.

Case Study 2: David’s Domestic Partnership

David and Michael are in a registered domestic partnership. They have legal rights similar to those of a married couple and want to ensure their financial security with life insurance. They decided to explore life insurance options specifically for domestic partners.

David and Michael researched different life insurance companies that offer coverage for domestic partners and found a policy that met their needs.

They provided documentation of their domestic partnership and financial obligations. The insurance company recognized their legal status and approved their life insurance applications. Now, David and Michael have the necessary coverage to protect each other financially.

Case Study 3: Emily’s Financial Dependence

Emily and Rachel have been in a committed relationship for many years and live together. They share various financial responsibilities, including rent, utilities, and joint bank accounts. Emily depends on Rachel financially, and they wanted to ensure that Emily would be taken care of if anything happened to Rachel.

Emily and Rachel applied for life insurance coverage, with Rachel as the policyholder and Emily as the beneficiary. They provided evidence of their financial dependence, such as joint bank account statements and utility bills.

The insurance company recognized their financial interdependence and approved the life insurance application. Emily now has the reassurance that she will be financially supported if Rachel passes away.

Life Insurance for Unmarried Couples: The Bottom Line

The most important factor in determining life insurance eligibility for an unmarried couple is financial dependence. The couple needs shared debt or a relationship that implies they have shared debt. Those that depend financially on each other will qualify for life insurance for unmarried couples.

Read more: What happens to debt when you die?

To find life insurance quotes for unmarried couples, enter your ZIP code to discover the best life insurance rates in your area.