Life Insurance Planning for Working Couples in Ghana
When both members of a household are working and bringing in income, there are several advantages. For one thing, there is likely to be more income to go around. This means that the members of the household are likely to enjoy a decent standard of living. It also means that the risk of a significant loss of spending power when one member of the family loses his/her job is less. With the nature of the job market in Ghana, one could take a long time to get another job after losing one. Therefore, having another partner with a job is a great thing to have.
However, nothing lasts forever and life is unfortunately not eternal on earth. It is likely that one partner would die before the other and depending on factors such as savings, pensions and number of children, living standards could drop significantly after the passing of one partner. In order to prepare for this terrible but inevitable event, it is important for the couple to have life insurance.
The question then is, what kind of life insurance policy should a couple take? Let us discuss the options below.
The first option is for only one partner to have life insurance. This option could be pursued in order to reduce the amount that they will pay in premiums. This partner will then name the other partner as the beneficiary of the policy. This kind of arrangement is not encouraged for working couples. This is because Ghana’s tax laws allow a person to deduct life insurance premiums from his/her taxable income. Therefore, if only one partner is covered, then only one of them is enjoying the tax deduction.
The second option is for both partners to have life insurance covers. This is meant to potentially maximize the amount of benefits that the children of such a couple will get when they are both passed away. However, the disadvantage with such an arrangement could be the payment of double premiums.
Another option is the joint life insurance policy. Such a policy presents a cost-effective way of having coverage for each partner or their children. This kind of policy usually comes in two forms – first to die policy and the second to die policy.
The first to die life insurance policy allows a couple to have a single policy where they name each other as beneficiary. In this way they pay a single premium and the policy is paid to the surviving partner after the death of one.
The second to die policy does not pay anything after the death of one. However, the benefits will be paid to a named beneficiary when both partners have passed. This option can be used for a couple that want to leave a benefit for their children after they have passed.
With all these options, there is no reason why a working couple cannot find a life insurance which fits their goals perfectly. If you want to get started, you can visit GhanaCompares.com and select the life insurance option. All you have to do is to fill in the details about the kind of policy you want and then you will be supplied with a quote from several insurance companies that will allow you to make the best choice.
GhanaCompares.com Blog Team
