{UAH} Uganda: Live-in Couples Need Insurance - NOW, THIS IS BAMY

Uganda: Live-in Couples Need Insurance

BY FLAVIA MPAGI, 17 SEPTEMBER 2013

The institution of marriage is becoming less appealing to people today than it was two decades ago.

That is, at least, according to the latest Uganda Demographic and Health Survey (UDHS); which reveals that marriage rates are falling partly because people are marrying at much later dates in their lives. The report notes that up to 38 per cent of men aged between 15 and 49 are more likely to have never been married compared to 24 per cent of women in the same age group.

Meantime, more couples are opting to co-habit before consdering marriage, if at all. In Uganda, common-law partnerships are not recognised by law. This means that you are, unfortunately, not automatically regarded as your partner's spouse, even though you may have been living together for a number of years.

This also implies that you are unable to take out life insurance on your partner's life. This is because to take out a life insurance policy on one's life, you must have an "insurable interest" in their life. For the principle of insurable interest to apply, the insured must stand to lose financially if a loss occurs.

This "standing to lose" is called insurable interest. A husband or wife has an insurable interest in their spouse's life based on ties of financial support. Unfortunately, despite the financial support live-in couples offer each other, they do not have insurable interest in each other's lives.

While practices vary from one life insurance company to another, there are certain exceptions that allow live-in couples to take out life insurance on each other's lives. Examples of these include having a child together, or owning a joint mortage.

If you are at a stage in your life when responsibilities and decisions are shared with a partner, you need to carefully consider your finances.

While life insurance policies are a good investment vehicle, your relationship with your partner could affect your ability to benefit from their insurance policies. Should you feel unsure as to your eligibility to benefit from an existing, or potential policy for that matter, speak to your insurer, who will assist you to better-plan your finances.

The author is chartered insurer.

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Gwokto La'Kitgum

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