Can You Get Life Insurance For Your Child’s Father if You are not Married?
The bond of marriage carries along many rights for spouses to enjoy. Employers and the government unequivocally grant married couples the power to legally claim benefits that they are entitled of. Among the many marital privileges are tax, disability, medical, death and other legal benefits. Marriage among others has financial advantages that other kinds of relationships don’t have, relationships like cohabitation. There are many reasons why some people get married and some people don’t. When an unmarried couple decides to live together and commit to obligations that married people have, this doesn’t mean that they can acquire the marriage status that they are already practicing. Cohabitation no matter how socially accepted, are still being treated differently especially when it comes to legal aspects. Unmarried partners who live together typically have limited privileges socially and legally. However, there are other privileges in store for them, privileges which suit their needs and situation. An unmarried couple may sign a cohabitation agreement which clearly specifies the financial rights as well as obligations of each partner. This will be a sort of replacement to the financial support afforded to a married spouse.
Based on statistics, a large number of unwed couples prefer to cohabit than get married. Many unmarried partners who have kids don’t really plan or are not ready yet to make it legal whether in church or in court. If you are living with someone you are romantically involved with and both of you decided not to get married yet even though you already have a child, you’ll surely be asking about the effects of not having your relationship legally recognizable. Living in together unmarried may look financially risky but there are ways to find adequate protection like life insurance. There is of course no question about getting a life insurance for yourself and making your child and live-in partner the beneficiaries.
Can you get life insurance for your child’s father if you are not married?
The answer is yes. You can purchase a life insurance policy for the father of your child even in the absence of a marital vow. There’s a compelling need to secure a life insurance policy especially for unwed couples. This is to save the surviving partner from financial distress in the event that her partner dies so that it will be a little easier to deal with the loss and the financial burden. An Insurance policy for an unmarried couple can be arranged by purchasing a cross-owning life insurance policy. It’s the type where you purchase an insurance policy for your partner, he buys one for you and you are the beneficiary of each other’s estate. The proceeds of the death benefits will then be used by the surviving partner to provide income. Since the life insurance policy is not owned by the deceased, but the surviving partner, it will not be incorporated with the estate of the deceased and is not subject to Federal estate taxes. But for Individual policies involving non-spousal beneficiary, the insurance policy proceeds will be subject to estate tax. And in order to make a life insurance contract valid for an unmarried couple, there should be an insurable interest on one another. Insurable interest between unwed partners must be demonstrated through wills or proofs of jointly owned assets. Affection and love for each other can also be an evidence of insurable interest provided that it is strongly, indisputably convincing.
Due to lack of financial benefits of marriage, unwed partners have greater financial needs and predicaments during the course of their relationship and even more if the other one dies. It is not just important to purchase a cross-owning life insurance policy for unwed couples, but also to make sure that the contract is properly done to avoid inevitable financial struggles in the future.