Your life together: what’s covered and what’s not?

Are you and your partner planning a life together? The more your lives become intertwined, the more important it is to have open, honest, and often uncomfortable ‘money conversations.’

Joint or separate bank accounts? Is there a budget for discretionary spending? What about your financial goals?

There’s a lot to discuss, and personal insurance – be it health, life, income protection or trauma insurance – is one of those topics. No one likes to think about it, but once you have a plan in place, you can have peace of mind that a lot of the ‘big stuff’ is taken care of in terms of securing your financial future together..

To get you started, here are some key things to know about insurance as a couple.

No two couples are the same

Life insurance, health insurance, income protection and more – there are many options to choose from. And while they all seem straightforward on the surface, if you look ‘under the hood’, you’ll find that these powerful protection tools can also be quite complex.

That’s why, when exploring your insurance options as a couple, it’s crucial not to jump to the solution before you’ve taken the time to understand your needs.

Do you have children, for example, or plan to start a family one day? Do you have a mortgage to pay off or a house deposit to save for – or perhaps, home ownership is not on your to-do list? Do you have any personal debt, individually or together?

These are all key questions, and as you can imagine, there are more. Unsure where to start? Talking with an insurance adviser can be a good idea. They specialise in helping Kiwis of all walks of life understand their insurance needs, and make informed decisions about their financial future.

Protecting your income

If you stop and think about, what’s your biggest financial asset? That would be your income. The money coming in every month allows you and your partner to meet your financial commitments, and work towards future goals.

So, what would happen if you or your partner suddenly lost the ability to work due to a serious illness or accidents? Or, what if either of you were no longer there to provide for the lifestyle you’ve worked so hard for?

Personal insurance, in its many forms, is designed to protect your financial future from the many shapes that the unexpected can take. The purpose of life cover, for example, is self-explanatory. But there are also other types of cover available, which can provide much-needed financial support if you’re unwell, or in the case of health insurance, fast-track access to treatment and diagnosis.

Lastly, keep in mind that insurance isn’t just for the breadwinners: even if stay-at-home parents or spouses don’t earn an income, they still contribute to the household significantly and in many ways. Would the breadwinner need to work less hours or hire someone to take care of a myriad of responsibilities that keeps a home and family running?

How much cover do you need?

Once again, the answer depends entirely on your circumstances – your lifestyle, your budget, your income, and your financial obligations all come into play.

For example, if you and your partner have children together or are planning to start a family at some point, protecting their future is likely to be on your mind. If so, you might take out enough cover to leave a legacy or fund other major costs, like tertiary education and your partner’s retirement lifestyle.

There’s a whole range of possible scenarios to consider, and various types of insurance cover which work in different ways, so if you’d like to explore your options with confidence, seeking expert advice is a good idea.

Need help?

As we’ve seen, as a couple, you have a lot to discuss. But before we leave you to it, know this: you don’t have to decide everything on your own.

Not only do insurance advisers know what solutions are available, but they also take the time to understand your needs and what cover (or mix of covers) might be appropriate for your lifestyle and budget. Plus, over time, they’re always available for your questions – to check if your policy details are still aligned with your life and, if necessary, make adjustments along the way.

Looking for the right adviser for you? Click here to find a financial adviser specialised in Personal Risk near you today.

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.