For married couples, the question of funeral expense insurance comes twice over – and the right solution isn't always two identical policies. A map of the options: separate policies, a two-insured product, and coordinating your beneficiary designations.
- The most common path: two separate policies, naming each other (or the children) as beneficiary.
- There is also a two-insured product on the market: a single policy that pays out on either spouse's death.
- Coordinating the beneficiary designations is key: who receives the payout at the first farewell, and who at the second.
Two separate policies: the simple path
Each spouse takes out their own policy, with their own entry age and sum insured. Its advantage is clarity: the two policies are independent, and one spouse's death doesn't affect the other's policy. Beneficiary designations are typically made crosswise – each names the other – and on the second policy it's also worth naming the children or another relative, so that the path is equally clear at the second death as well. Some insurers offer a discount on a spouse's second policy.
The two-insured product
Some funeral expense insurance products on the market cover two insured people under a single policy: a payout is due on either person's death, and in some structures, once the first death has occurred, the surviving insured person's cover continues without further premiums. This can be convenient and cost-effective – but in return, its rules are more complex (what happens at paid-up reduction, what happens on a death within the first year), and these need to be discussed carefully before you sign.
Coordinating the beneficiary designations
The typical mistake: naming only each other as beneficiary on both policies – so at the second death, the payout is left without a named beneficiary, and typically becomes part of the estate. Good practice is to name each other as primary beneficiary, and – alongside, or as secondary beneficiary where the product allows it – the children as well. That way, the path stays direct at both farewells. The beneficiary designation article covers this in detail.
Sum insured and timing, seen as a pair
The cost of the two farewells isn't necessarily the same – wishes can differ, and by the time of the second farewell, the question of the grave may already be partly settled. Entry ages differ too: sometimes one spouse has a wider choice of options. That's why, for couples, I prepare the comparison for both of you together – in a single table, so the decision is shared and transparent.
Have a question about your own situation? Let’s talk it through, calmly – 20 minutes, free of charge →
