Unmarried couples have been given a warning that they could be at risk of not receiving a payout if one of the partners dies.
The pensions and life insurance company Scottish Widows is encouraging couples to take a look at their finances in the new year, due to a survey they conducted.
Through asking 2,000 people they found just over half (52%) of unmarried people know if their partner has a life insurance policy.
Meanwhile, 43% said their other half has no plans to ensure they are legally entitled to their payout, and 27% of those aware of their partner’s life insurance do not know the policy’s value.
Around a third (34%) of couples rarely discuss long-term financial planning because they see it as unnecessary, awkward or simply too difficult, and this increase to 40% among over-55s.
Scottish Widows said that many people may not automatically be entitled to their partner’s life insurance payout in the event of their death, so failing to discuss finances could jeopardise financial security in the long term.
READ MORE: Martin Lewis issues financial warning to unmarried couples living together
Rose St Louis, protection director at Scottish Widows, said: “We know people find it difficult to talk about what would happen if their partner became ill or died suddenly, but unmarried couples often do not have the same protection as those who are married, which makes having those honest and frank conversations even more important.
“Breaking that taboo of talking about planning for the worst is an ideal new year’s resolution for couples because you can achieve it with just one open conversation.
“Seeking impartial, professional financial advice is also an option to help you understand the implications of your relationship on your and your family’s financial future. Financial advisers can help you tackle the subject sensitively and sensibly.”
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