As people’s understanding of insurance grows, more and more unmarried couples are starting to wonder how to get insurance coverage for each other. But, there are some special challenges and limits for unmarried cohabiting partners in the insurance field that can’t be ignored.​

Rules for unmarried couples insuring each other are very different in different countries and regions. In France, unmarried couples can share an insurance policy and get similar benefits as married couples by signing a PACS agreement. They don’t have to take care of each other when sick—they just need to give financial help. Germany is working on a “liability community” law.

After unmarried couples sign a contract, they can share medical information and let each other make decisions for them, and mutual insurance might be possible later. Since 2018, the UK has let opposite-sex couples register as civil partners and get insurance benefits like those of marriage. Couples who haven’t registered as civil partners find it hard to insure each other. In the US, there’s no single rule. Some states recognize cohabiting partner relationships, so couples can share insurance, while in states that don’t, they have to buy their own individual policies. In European countries like the Netherlands and Belgium, the civil partnership system gives unmarried couples similar tax, insurance and other benefits as marriage, including mutual insurance.​

There are two main risks when couples insure each other:​

Moral risk: The relationship between couples is not stable. Once the relationship ends, there may be contract disagreements. Insurance companies are worried about this uncertainty, so they’re not willing to accept mutual insurance between couples.​

Contract risk: An insurance contract is an agreement between two sides, and both parties must keep their promises. But the lack of legal protection for the couple relationship makes it hard for insurance companies to use the law to make sure the contract is carried out. For example, if one party suddenly decides not to keep the contract, the other may not get compensation.​

Unmarried couples can choose the following ways to avoid these risks:​

Individual insurance: Unmarried couples can buy insurance for themselves and name their close family members as beneficiaries after death.^[1] This can avoid legal problems from mutual insurance and make the insurance contract clear.​

Change after marriage: If they decide to get married, they can change the insurance beneficiary to their spouse after marriage. This follows the law and avoids pre-marriage insurance limits.​

No matter which way, when buying insurance, the insured must agree and sign in person. Without the insured’s consent, buying insurance for a partner on your own will make the contract invalid.​

What types of insurance can unmarried partners buy?​

1. Life insurance​

Unmarried partners can legally buy life insurance. Many insurance companies now offer insurance products made specifically for unmarried partners. When applying for life insurance, unmarried partners usually need to give the insurance company some information about their relationship, like how long they’ve been living together, if they have children together, and if there’s a financial agreement. The insurance company will check the applicant’s risk based on this information and decide the premium accordingly.​

2. Health insurance​

If you can prove you live together (like having a joint lease), many insurance companies let you add your unmarried partner as a beneficiary of private medical insurance. For medical insurance provided by your employer, some employers offer “partner benefits”, but not all do. To get this benefit, you may need to provide related proof, like joint bills, a shared address, or a domestic partner affidavit.​

3. Accident insurance, critical illness insurance or other personal insurance​

For accident insurance, critical illness insurance or other personal insurance, unmarried partners can usually be each other’s beneficiaries as long as they follow the normal application steps. When applying, you may need to fill out related forms and provide some extra information or proof, like a shared address and proof of shared financial duties.​

Special precautions for unmarried cohabiting partners in insurance:​

1. Home insurance

Home insurance usually covers the house owner and family members living in the same home. This often includes a spouse. But you might not be married to your partner. Your partner might not be a family member. Your partner might not be the house owner. Then the insurance company may not let you add them to the policy. You should ask the insurance company first. See if they can make an exception.

If the insurance company says no, you have another choice. You can apply for tenant insurance. Tenant insurance can cover unmarried partners. This is for people living in someone else’s house. It covers risks like accidental injury. It also covers property loss or damage. So, unmarried partners living together should think about tenant insurance. It makes sure they are covered if something bad happens at home.

2. Car insurance

Car insurance rules are different from home insurance. The rules for unmarried partners are more flexible. You might not be married to your partner. But many insurance companies will still let you add them to your car insurance. You can also buy a joint car insurance policy. This is often cheaper than buying two separate policies.

But you should know one thing. If you add your partner to your policy, their driving history matters. Their past claims will affect your premium. If your partner has a bad driving record, your cost might go up. If they have had many accidents, the price will be higher. So, before you decide, look at both of your driving records.

What’s not allowed?​

In some places, family insurance plans may only cover legally recognized family members. For example, many family insurance policies only let legally married spouses or close family members be beneficiaries or insured persons. This means that even if you live with your unmarried partner and share financial duties, the insurance may not cover them. In this case, the insurance company usually needs a marriage certificate or other legal documents to prove the family relationship, and unmarried partners don’t meet the requirements.​

Government social insurance programs usually don’t cover unmarried partners either. For example, public medical insurance, old-age insurance or unemployment insurance usually only recognize spouses in a legal marriage or close family members as eligible for coverage. So, even if you live with your unmarried partner and share the same life duties, your partner is likely not to get these government-provided benefits.​

Some financial or legal documents may only accept legally recognized family members when naming an “emergency contact” or “legal representative”. For example, some hospitals only let a spouse or close family member sign a surgical consent form or make major medical decisions. ^[2]Banks may also require a legally recognized family member when handling account authorization. So, in an emergency, even if an unmarried partner has lived with you for years, they may not have the right to sign or make decisions. These rules aren’t targeting unmarried partners, but institutions have to follow legal standards. But in reality, it does cause trouble for unmarried partners.

Source:

[1] https://www.legalandgeneral.com/insurance/life-insurance/definitions/single-vs-joint-life-insurance/

[2] https://www.sbelderlaw.com/how-to-prepare-with-an-unmarried-partner/

Reference:

[1]https://insureguardian.com/can-unmarried-couples-get-life-insurance/

[2]https://www.dowd.com/insurance-considerations-for-unwed-couples/