What does common law partner mean?

It means living together as a couple without being married. It’s not recognised in UK law, though the rules differ slightly in Scotland.

Will my partner get the house if I die?

Only if they’re named on the deeds, or in your will. Otherwise, your share might go to someone else. If you want it to pass to them, add them as a beneficiary so it’s clear what you want to leave to them.

Do unmarried partners pay more inheritance tax?

Yes. If you're not married and your partner dies, you might have to pay a lot of tax: 40% on anything over £325,000. But if you're married or in a civil partnership, you usually don’t have to pay any tax at all when your partner dies.

What happens to my pension if I’m not married?

Your partner might not get anything unless you’ve named them as a beneficiary. Check with your pension provider.

Will my life insurance payout go to my partner?

Only if you name them as a beneficiary on the policy. Otherwise, it might go to someone else.

Can life insurance help my partner stay in our home?

Yes. A life insurance payout could pay the mortgage and help with bills so they don’t have to move out. It could also be used to leave a legacy for your loved ones.

Is life insurance taxed if I die?

Not usually. But if the payout becomes part of your estate, it might push you over the tax threshold. Putting it in a trust can help. Ask an advisor if you’re unsure.

Life Insurance for Common Law Partners | Life Cover

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In this article

What is a common law partnership?
What if one of you dies and you’re not married?
What happens if you die when married or in a civil partnership?
Property and inheritance
Inheritance tax
Making a will
Pensions, benefits and life insurance
Why life insurance matters for unmarried couples
Common questions

What is a common law partnership?

Many people think living together for a long time gives you the same legal rights as being married. This idea is often called a “common law” marriage or partnership. Some think it means sharing property, pensions or next-of-kin rights automatically. But, here in the UK, common law marriage isn’t recognised by law.

If you’re not married or in a civil partnership, you’re seen as ‘cohabiting.’ That means you and your partner don’t get the same legal protections as married couples, even if you’ve been together for years or have children. The rules in Scotland are a bit different, but financial protection still isn’t guaranteed. You can help protect each other by making a will, getting life insurance and naming your partner on pensions, benefits and your life cover policy.

What if one of you dies and you’re not married?

If you die without being married or in a civil partnership, your partner doesn’t have the same rights as a legal spouse. Depending on your situation, they might:

Inherit nothing unless they’re named in your will or on policies
Miss out on pensions or death in service benefits (unless you’ve named them as beneficiaries)
Pay more inheritance tax than a married or civil partner
Be asked to leave your home if they don’t own it

If you have children, your partner may not be able to make decisions for them unless they have legal parental responsibility. But they’d still need to support them financially, which can be hard at an already upsetting time.

Get cover today and protect your loved ones tomorrow

Life insurance

Two people sit closely on a green couch with arms around each other, surrounded by cushions

Jodie and Sam: grief made harder

Jodie and Sam had been together 12 years and lived in a home Sam bought before they met.

They never married so, when Sam died without a will, the house went to his parents, who were keen to sell it. Jodie had to move out within three months and didn’t get a penny from Sam’s estate.

This could have been avoided if he’d named Jodie in his will. And adding Jodie as the beneficiary on his life insurance would have given her an extra financial safety net.

^{This is a fictional example for illustration purposes only.}

What happens if you die when married or in a civil partnership?

Marriage and civil partnerships give couples strong legal rights. If one of you dies:

The partner left behind may get everything, even if you don’t have a will
They won’t usually pay inheritance tax
They may get money from pensions or death in service benefits

If you have children and die without a will, your partner usually gets:

The first £322,000 of what you own
All your personal belongings
Half of anything that’s left (the rest goes to your children)

What is a civil partnership?

A civil partnership is a legal way to be joined as a couple. It's open to both same-sex and opposite-sex couples. It gives you similar right and protections to marriage, including tax and inheritance rights. This helps protect your partner if something happens to you.

Property and inheritance

If you own a home together

How you own your home makes a big difference. There are two main ways to own property together:

Joint tenants: You both own the home together and are both named on the deeds. If one of you dies, the other person automatically gets the whole property
Tenants in common: You each own a set share. But, if one of you dies, their share only goes to the other person if it’s set out in a will

If there’s no will, the person’s share might go to their family, not their partner. Even if the surviving partner has lived there for years and helped pay the bills. We’ll cover making a will shortly.

Inheritance tax

When someone dies, their estate (money, property and belongings) may be taxed. Whether or not you’re married affects how much inheritance tax is due.

If you’re married or in a civil partnership:

You can usually leave everything to each other tax-free
Each person has a £325,000 nil rate band. If one partner doesn’t use all of theirs, the unused amount can be transferred to the other. This means up to £650,000 can be passed on later without inheritance tax
There’s an extra allowance of up to £175,000 per person (called the Residence Nil Rate Band) if you leave your home to a child or grandchild. This is also transferable between partners
Together, this means a couple could potentially pass on up to £1 million tax-free, subject to conditions

Tax rules can change, so always check the latest guidance or speak to a professional adviser. Find out the latest information on the GOV.UK website.

If you’re not married or in a civil partnership:

Your partner might have to pay 40% tax on anything you leave them over £325,000
You can’t share or pass on any unused tax allowances
Even with a will, they may have to sell assets you leave them to pay the tax

Some people put their life insurance policy in trust to help cover tax or reduce the size of the estate. Ask an advisor if you’re not sure what to do.

Two people stand close together outdoors, with trees and sunlight in the background

Khadija and Nick: where there’s a will

Khadija and Nick lived together in Manchester with Nick’s teenage son.

Khadija made a will naming Nick as the main beneficiary, and they added his name to the house deeds. But they chose not to marry.

When Khadija passed away from cancer, there were no legal disputes or tax surprises. Nick inherited the home and savings, just as she’d had wanted.

^{This is a fictional example for illustration purposes only.}

Making a will

A will lets you choose who gets what when you die. It’s one of the best ways to protect your partner if you’re not married. Without one, they might get nothing even if you’ve shared a home for years.

To make a will:

List what you own and who you want to leave it to
Choose someone to carry out your wishes (called an executor)
Sign it with two adult witnesses
Keep it somewhere safe (in a fireproof box is recommended)

You can write your own will or use a solicitor if things are more complicated.

Check the GOV.UK guidance on making a will

What is a cohabiting agreement?

A cohabiting agreement or contract is a legal document designed for couples who live together but aren’t married. It sets out what happens if the couple breaks up or one of the pair dies. It can help avoid confusion and arguments.

It can include:

Who owns what
How your bills or other costs are shared
What happens to the couple’s home or things they’ve bought together

It doesn’t replace a will, but it adds extra clarity. If it sounds like a useful option for you, a solicitor can help you make an agreement that’s fair and legally sound. And it’s a good idea to review it if your situation changes, like buying a home or having children.

Pensions, benefits and life insurance

If you’re not married, your partner might not get your pension or death in service benefits automatically like married couples would. You often need to:

Nominate your partner as a beneficiary in writing, and
Check your schemes allow payments to unmarried partners

If you don’t do this, the money could go to someone else.

Life insurance gives you more control over what happens. Let’s look at how.

Why life insurance matters for unmarried couples

Life insurance can be a smart and simple way to protect your partner financially. Even if you’re not married, it can help them stay secure if something happens to you. Here’s how.

You choose who gets the money: Just name your partner as the beneficiary
It pays out quickly: Once the claim is approved, the cash lump sum is often paid faster than the money from a will
It helps cover big costs: Like rent or mortgage payments, bills, childcare or replacing lost income
It avoids confusion: A clear and simple policy means no disagreements about who gets what

Amina and Yasmin: space to grieve

Amina and Yasmin lived together for seven years in Cardiff. They weren’t married, but Amina had named Yasmin as the beneficiary on her life insurance policy.

When an accident took Amina’s life, Yasmin received the full cash sum within a few weeks.

At a tough time, it paid off the mortgage and gave her breathing room to take time off work without worrying about bills.

^{This is a fictional example for illustration purposes only.}

Types of life insurance

There are different types of life insurance to choose from, depending on how long you want cover for and what you want it to do.

Term life insurance runs for a set number of years and pays out if you die during that time. There are three main types:

Decreasing term: The payout gets smaller over time, often used to cover a mortgage
Level term: The payout stays the same, so your loved ones get a fixed amount
Increasing term: The payout goes up over time to help keep up with inflation

You can also get whole of life cover, which lasts your entire life instead of ending after a set term. Some policies, like over 50s life cover, can help cover funeral costs or leave a small gift.

More about life cover options

Single or joint cover?

It’s also important to think about whether you get combined or separate cover.

Single life insurance: You each have your own policy and both could pay out
Joint life insurance: One policy for both people that pays out once, usually when the first person dies

For unmarried couples, some couples choose two single policies for separate payouts, but the right option depends on your circumstances.

Two people stand close together on a city street, both wearing green jackets, with traffic lights and buildings in the background

Roz and Chris: ready for the unexpected

Roz and Chris took out individual life insurance policies when they bought their first home in Birmingham.

They weren’t interested in getting married, but they wanted to protect each other.

When Roz died after a short illness, her policy paid out to Chris directly. It meant he could clear the mortgage and stay in the home they’d made together. And his own life cover policy was still in place.

^{This is a fictional example for illustration purposes only.}

Key takeaways

If you’re not married, your partner may not be protected when you die. But there are simple ways to help keep them safe.

Living together isn’t enough: They may get nothing unless they’re named in your will, benefits or policies
The tax bill can be high: They might have to pay 40% on anything they inherit over £325,000
Protect them with life insurance: It can pay them a cash sum to cover the mortgage, bills or other costs
Plan ahead: Make a will, get life cover and check who you’ve named to get your money or pension

If you’re not sure, ask a legal or financial advisor for help.

Put peace of mind in place today

Life insurance

Common questions

It means living together as a couple without being married. It’s not recognised in UK law, though the rules differ slightly in Scotland.
Only if they’re named on the deeds or in your will. Otherwise, your share might go to someone else. If you want it to pass to them, add them as a beneficiary so it’s clear what you want to leave to them.
Yes. If you're not married and your partner dies, you might have to pay a lot of tax: 40% on anything over £325,000. But if you're married or in a civil partnership, you usually don’t have to pay any tax at all when your partner dies.
Your partner might not get anything unless you’ve named them as a beneficiary. Check with your pension provider.
Read more
Only if you name them as a beneficiary on the policy. Otherwise, it might go to someone else.
Yes. A life insurance payout could pay the mortgage and help with bills so they don’t have to move out. It could also be used to leave a legacy for your loved ones.

Read more: 6 reasons for getting life insurance
Not usually. But if the payout becomes part of your estate, it might push you over the tax threshold. Putting it in a trust can help. Ask an advisor if you’re unsure.

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