Joint Life Insurance Who Gets the Money? [2025 Guide]

Q: Who gets the money from a joint life insurance policy?

With joint life insurance , the money is typically paid out to the surviving policyholder. Most joint life insurance policies pay out after the first death occurs so that the surviving partner can use the money to help cover funeral costs, as well as allowing them to continue with their usual standard of living. If a death doesn’t occur while the policy is active, the policy expires and no one gets the money.

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Joint life insurance who gets the money

Who gets the money from a joint life insurance policy?

With joint life insurance, the money is typically paid out to the surviving policyholder.

Most joint life insurance policies pay out after the first death occurs so that the surviving partner can use the money to help cover funeral costs, as well as allowing them to continue with their usual standard of living.

If a death doesn’t occur while the policy is active, the policy expires and no one gets the money.

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How does a joint life insurance policy pay out?

A joint life insurance policy pays a lump sum out if one policyholder passes away while the policy is active.

This could either be during a set term (term-based cover) or no matter when you pass away (life assurance).

The pay out will usually be made upon the first death (and will be paid to a UK bank account), meaning the surviving policyholder can use the money to help with paying for the funeral and covering essential living expenses.

Once the pay out has been made, the policy expires and the surviving policyholder may need to take out a new policy if they would like to provide a pay out for their loved ones upon their passing.

With some policies, you have the option for the pay out to be paid after the second death.

In this scenario, the surviving policyholder wouldn’t receive a pay out when the first policyholder dies. Instead, loved ones would receive a pay out if both policyholders pass away during the policy term.

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Who is the beneficiary of joint life insurance?

The beneficiary of a joint life insurance policy will depend on who you take a policy out with and who you name as the beneficiary.

Joint life insurance is a popular choice for:

Married couples – if you share assets (such as a mortgage) or you have children that are financially dependent on you, the pay out could help to keep your family in their home should the worst happen.
Unmarried couples – joint life insurance could be particularly beneficial for couples that are cohabiting and share financial commitments. When you die, your life insurance forms part of your estate and will be paid to your next of kin as the rules of intestacy don’t recognise unmarried couples. If you write your policy in trust and name your partner as a beneficiary, they’ll receive the pay out.
Business partners - business partners sometimes choose to take out a joint policy to protect themselves should one partner pass away.