The number of unmarried co-habiting couples is increasing rapidly, according to new analysis from Santander Insurance. Yet only a quarter (23 per cent) of unmarried couples who jointly own or plan to jointly own a property would rely on their partner’s life insurance to cover their partner’s financial commitments should they pass away or become terminally ill.
The bank says unmarried co-habiting couples are less likely to have life insurance, and is warning that the product is just as important for those who are unmarried as those who are.
There was a 28 per cent increase in the number of unmarried opposite sex co-habiting couple families between 2003 and 2013, 41 per cent of which had dependent children living with them1. Over the same time period there was a 68 per cent increase in the number of same sex co-habiting couple families, six per cent of which had dependent children under their roof.
The findings reveal that finances are a major factor behind many co-habiting couples not being married. One in four (24 per cent) says they can’t afford to get married and 7 per cent live together to save money on housing costs.
Nearly one in five unmarried co-habiting couples (18 per cent) says neither of them wants to get married, and 10 per cent say one of them doesn’t want to. Fourteen per cent say they are ready to live together but not yet ready to marry, and nine per cent say they are living together to find out if they are compatible before they get married.
Of those unmarried couples who jointly own or plan to jointly own a property, 23 per cent would rely on life assurance if their partner passed away or became terminally ill, while one in four (24 per cent) would sell their joint property, eight per cent would rely on help from family and friends and one in 20 (five per cent) would risk repossession. Another 15 per cent say they don’t know what they would do.
Mark Russell, Head of Marketing at Santander Insurance, said: “Modern families come in all shapes and sizes nowadays and there has been a significant increase in the number of unmarried family units. However, unmarried couples tend to consider life insurance less than married couples, so we want to make sure this audience is aware of the importance of financially protecting themselves for the eventuality that their other half passes away or becomes unable to contribute. A good number of these family units include dependent children, which makes it all the more important that life and critical illness cover are in place.”
