In a couple? How to protect your financial future

Building a life together means setting goals, making plans, and sharing your finances. So, how can you make sure that your shared financial future is protected?

As you will learn in this quick guide, different types of personal insurance can help you and your partner achieve invaluable peace of mind. Here’s how.

A closer look at your circumstances

Life cover, health insurance, income protection, trauma cover – with so many options to choose from, it’s important to take the time to understand your needs first and foremost.

For example, do you and your partner have a house, children, or a high level of personal debt? Don’t have kids but you’re planning to start a family one day? Don’t have a house, but you’re saving for your deposit?

These are just some key scenarios, but remember, no two couples are the same. By taking a closer look at your circumstances, it can be easier to identify your most important assets and make sure that these are protected.

What insurance may you need?

Each type of insurance is designed to cover specific risks. Here are some common examples:

  • Life insurance – Life cover can provide the surviving partner with a source of income and support. Depending on the size of the payment, your loved ones may use it to pay off the mortgage, cover everyday expenses for a while, create a fund for tertiary education, and anything else in between. If you have children and/or a mortgage, life insurance is worth considering.
  • Health insurance – This type of cover can give you and your partner faster access to private treatment and diagnostics. Some policies even include a certain level of cover for non-Pharmac funded treatments. As a couple, health insurance can help you take charge of your health and well-being, and hopefully – depending on the health condition – enable a speedier return to work. Plus, the younger and healthier you are, the better: by taking out health insurance now, any medical conditions you may develop now on will likely be covered.
  • Income protection – When you’re building a life together, your ability to earn an income is probably your biggest financial asset. It allows you to support your current lifestyle and save for your goals. So, what if either of you were no longer able to provide? Income protection can take care of that what-if by paying you up to 75 per cent of your gross pre-disability income if you’re off work due to a serious illness or injury.
  • Trauma insurance – Experiencing a serious medical condition can be emotionally and financially draining for a couple or family. And with this in mind, trauma insurance (also known as critical illness cover) is worth considering. It’s designed to provide a lump-sum amount upon diagnosis of one of the serious illnesses listed in the policy. Covered conditions vary, but usually things like cancer, heart attacks and strokes are included. What’s more, you and your partner can use the lump sum as you like.

As you can see, insurance can be quite powerful in protecting you and your loved ones. But there’s quite a lot to think about.

Not quite sure where to start? Get in touch with a SHARE adviser: we can talk through your options and answer any questions you may have.

Insurance isn’t just for the breadwinners

Of course, the prospect of losing a partner isn’t an easy thing to ponder over, but unfortunately, it can happen. And unlike many people believe, insurance isn’t just for the breadwinners.

For example, while stay-at-home parents don’t earn an income, they contribute to the household in many other ways. Think about housekeeping costs, childcare, or even keeping track of utility bills so that payments happen on time every time.

How would your family cope if the stay-at-home parent was no longer around? Would you have to hire someone to fill in the gaps, or take some time off and do it yourself? A life or trauma insurance payout may help you secure your lifestyle should the unthinkable happen.

Time to start the conversation?

Personal insurance conversations can be difficult to start but they’re also crucial to have sooner or later. After all, your partner is one of the most important people in your life, and you want to make sure that their financial future is as safe as possible.

To make the conversation less daunting, it can be a good idea not to focus on the outcome you’re trying to avoid, but rather frame the conversation around financial security and your goals for your loved ones – like paying off the mortgage or making sure that your children’s future is protected.

So, start by setting aside some time to discuss your needs together. Once you’re on the same page, talking with an insurance adviser like us can be a good idea. We can help you identify and plug your protection gaps. Then, over time, we can work with you to ensure that your cover stays relevant to your changing needs – anything that you need to gain confidence in your future.

Like to talk?

As always, our SHARE financial advisers are just a phone call away. We’ll be happy to discuss your insurance options in detail: click here to find an adviser near you.

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.