Spouse Insurance: Dependent Life Coverage Explained

Dependent life spouse insurance is a type of life insurance that pays a death benefit to the policyholder if their spouse passes away during the policy term. It is designed to cover final expenses, such as funeral costs, and is often provided by employers or through joint life insurance policies. While the definition of a spouse for dependent life insurance purposes may vary, it typically includes anyone the state recognises as a spouse, including common-law spouses.

Who is covered by dependent life spouse insurance?

Dependent life spouse insurance is a type of life insurance that pays a death benefit to the policyholder if their spouse passes away during the policy term. It is designed to cover final expenses, such as funeral costs and travel to the funeral.

For dependent life insurance purposes, spouses are usually defined in broad terms and typically include any person state law treats as a spouse, including a common-law spouse (provided it is recognised in your state). However, a domestic partner may not be recognised as a qualifying spouse depending on the language of the specific group plan.

The definition of a spouse for dependent life insurance purposes may vary but includes anyone the state recognises as your spouse. Family members who rely on your income may qualify as life insurance dependents.

Dependent life insurance is often provided by employers or through joint life insurance policies. It is also obtainable through an employer's group benefit plan option, referred to in this context as voluntary dependent life insurance or voluntary group life insurance.

What is the cost of dependent life spouse insurance?

Dependent life spouse insurance is a type of life insurance that pays a death benefit to the policyholder if their spouse passes away during the policy term. It covers funeral expenses and the costs of losing a non-income-earning spouse. Dependent life insurance is often provided by employers or through joint life insurance policies.

The cost of dependent life spouse insurance varies depending on the amount of coverage and the age of the spouse. The older the spouse, the higher the cost, as adults are at a higher risk of passing away. The maximum coverage for a spouse is $100,000, and the monthly premium for this amount of coverage might be $4.50 if the spouse is 34 years old. The cost will increase every five years as the spouse ages. For example, it might increase to $5.30 per month when the spouse turns 35 and then to $8.00 when they turn 40. The monthly premium for children's coverage is usually lower, at around $1.50 per month for $10,000 of coverage.

Dependent life spouse insurance can be purchased as a standalone policy or as part of a group plan. Group plans typically offer coverage in $2,000 increments, and the cost is usually withheld automatically from the policyholder's paycheck. It's important to note that benefits may be taxable in certain circumstances, such as when the employer pays for coverage greater than $2,000.

What is the payout for dependent life spouse insurance?

Dependent life spouse insurance is a type of life insurance that pays a death benefit to the policyholder if their spouse passes away during the policy term. It covers funeral expenses and the costs of losing a non-income-earning spouse. Dependent life insurance is often provided by employers or through joint life insurance policies.

The definition of a spouse for dependent life insurance purposes may vary but includes anyone the state recognises as your spouse. For example, this could include a common-law spouse, provided it is recognised in your state. However, a domestic partner may not be recognised as a qualifying spouse, depending on the language of the specific group plan.

Dependent life insurance policies for spouses often come with a conversion option. The pricing for spouse coverage is typically higher than for a child, due to the older age and increased risk of the spouse. For example, a group plan may offer $2,000 per dependent. Premiums for dependent coverage are automatically withheld from your paycheck after taxes.

How does dependent life spouse insurance work for military families?

Dependent life spouse insurance is a type of life insurance that pays a death benefit to the policyholder if their spouse passes away during the policy term. It is designed to cover final expenses, such as funeral costs, and travel to the funeral, so death benefit payouts tend to be smaller. Dependent life insurance is often provided by employers or through joint life insurance policies.

For military families, dependent life spouse insurance is available through the Family Servicemembers’ Group Life Insurance (FSGLI) program. This program is specifically designed for spouses and dependent children of members of the military who are also insured under Servicemembers’ Group Life Insurance (SGLI). As long as a military member has a full-time SGLI policy, dependent life insurance should be available to their spouse and children who are younger than 18, full-time students, or permanently and totally disabled.

The definition of a spouse for dependent life insurance purposes may vary but typically includes anyone that state law treats as a spouse, including a common-law spouse (provided it is recognized in the state). However, a domestic partner may not be recognized as a qualifying spouse depending on the specific group plan. Dependent life insurance for spouses can be more expensive than for children due to the increased risk associated with older age.

While no one likes to think about having to bury a loved one, it is important to prepare for the financial implications of such a loss. If you are unprepared, you could be hit with both an emotional and financial crisis at once. Dependent life spouse insurance can help to ease the financial burden associated with the death of a spouse, providing some peace of mind during a difficult time.

How does dependent life spouse insurance work for common-law spouses?

Dependent life spouse insurance is a type of life insurance that pays a death benefit to the policyholder if their spouse passes away during the policy term. It is designed to cover final expenses, such as funeral costs and travel to the funeral, so death benefit payouts tend to be smaller. For example, a group plan may offer $2,000 per dependent. Dependent life insurance is often provided by employers or through joint life insurance policies.

For dependent life insurance purposes, spouses are usually defined in broad terms and typically include any person state law treats as a spouse, including a common-law spouse (provided it is recognised in your state). However, a domestic partner may not be recognised as a qualifying spouse depending on the language of the specific group plan.

Family Servicemembers' Group Life Insurance (FSGLI) is a life insurance program specifically designed for spouses and dependent children of members of the military who are also insured under Servicemembers' Group Life Insurance (SGLI). So long as a military member has a full-time SGLI policy, dependent life insurance should be available to their spouse and children who are younger than 18, full-time students, or permanently and totally disabled.

Dependent life insurance is a voluntary or supplemental insurance option, which means that it is not always included in an employer's group benefit plan. It is important to check the specific language of the group plan to understand if common-law spouses are recognised as qualifying spouses.

Frequently asked questions