As we navigate life’s experiences, securing our financial well-being becomes paramount, especially for unmarried couples. For many, the cost of living has meant it’s harder to save for marriage. However, there are practical steps you can take to build your future together.
Understanding the risks
While married couples and civil partners have clear legal rights and entitlements upon divorce or death, unmarried partners have no rights, forcing them to rely on property, trust and contract law. Unmarried couples face unique financial challenges. Shared debts and mortgage responsibilities, coupled with the absence of legal ties, can expose couples to financial risks during unforeseen circumstances.
Practical measures for financial security
Taking practical steps, such as securing adequate insurance coverage, can make a significant difference in safeguarding your joint financial responsibilities.
Life insurance: Provide financial security for your partner with a life insurance policy. In the unfortunate event of a partner’s passing, life insurance ensures that the surviving partner is not burdened with outstanding debts or financial responsibilities alone. It’s essential to place your policy within a trust to ensure that your partner receives the payment.
Critical Illness Cover: Protect against the financial impact of critical illnesses. This coverage provides a lump sum payment if one partner is diagnosed with a specified critical illness, offering financial support during challenging times.
Income Protection: Safeguard your joint financial responsibilities with income protection. This type of insurance provides a regular income if either partner is unable to work due to illness or injury.
Seeking professional advice
Understanding the difficulties of insurance can be complex. Consider consulting with a financial adviser to tailor a protection plan that aligns with your unique needs and circumstances.
This practical approach to securing your financial future serves as a lasting commitment to the well-being of your relationship and can help keep you financially secure as an unmarried couple, should the worst happen.
For more information, contact your adviser who can support you and discuss the options available to you.
If you’d like to discuss the options available to you, contact your adviser today.
Source: Mortgage Intelligence (Published February 2024)
Sign up to The Mortgage Mum email newsletter here.
Catch up on other blog posts from The Mortgage Mum here.
Watch videos on The Mortgage Mum YouTube channel here (subscribe for new videos)
Photo by Andre Furtado / Pexels
