Joint life insurance

A joint life insurance policy covers two lives simultaneously.

You pay one monthly premium, there’s one contract and the terms of the policy protect both named parties.

On average, joint life insurance can save you approximately 25% in comparison to two single policies. Although, you could save up to 40%.

But what’s the better option?

At Reassured we can provide you with all the information you require to determine if joint cover is the best option to meet your needs, whilst comparing quotes to save you money.

Simply get in touch with Reassured today…

Joint life insurance involves making one application which will include information regarding both applicants.

This information will then be used to determine the level of risk you pose to the insurer as a collective and your monthly joint premium will be calculated accordingly.

Once in place, cover protects both lives under the same terms until the policy expires or one party passes away.

If either party passes away during the period of cover, a claim can be made and a pay out issued.

Joint life insurance covers all the causes of death an individual policy does, this includes any natural or accidental cause of death.

By having the pay out made directly to the surviving partner, the funds can be used to cover essential financial commitments to help minimise financial stress.

Alternatively, the funds could be left as an inheritance for the surviving partner to spend as they wish.

As joint life insurance is often taken out by those who share financial obligations, these are the aspects you’ll want to cover to make sure they’re taken care of if the worst were to happen.

However, as there’s only one pay out provided by a joint policy, once the pay out has been made the surviving partner will need to secure a new policy to cover any additional costs for their loved ones (such as funeral costs and future living costs).

What won’t be covered?

Any exclusions added to a joint policy will be the same as with individual cover.

If either party has any pre-existing medical conditions, these will likely be added as exclusions to the policy, meaning you won’t be able to make a claim for this reason.

Suicide won’t be covered for the first 12 months of the policy and if non-disclosure is found this will invalidate the policy.

Non-disclosure refers to not being completely truthful on your life insurance application. Not only is this a form of insurance fraud but it can also prevent a pay out from being made to your loved ones.

For example, if either (or both parties) declare that they don’t smoke but then pass away due to a smoking-related illness, insurers have the right to deny a pay out.

As a result, you should always be honest and forthcoming during the application process.

For any specific questions regarding what life insurance covers, contact our team who’ll be able to provide you with all of the information you need.

Securing a joint policy can offer a financial safety net, in the form of a substantial cash amount, for one partner in case the other partner was to pass away.

But the best option for you will depend on what it is you’re looking to protect.

Keep reading to find out everything you need to know about these joint policy types.

Alternatively, contact Reassured to determine the best type of joint life insurance to suit your needs.

Whole of life insurance as a joint policy, as with a single policy, may be suitable if both partners are in the later stages of life and still in good health.

This is because a whole of life insurance policy provides lifetime cover and guarantees a pay out to the surviving partner, making it an ideal option for providing an inheritance and covering expensive funeral costs.

To keep cover in place, you’ll be required to pay premiums for the rest of your life.

As your medical wellbeing will be taken into account to calculate the cost of your premium, if you have less than favourable health, paying inflated premiums over your lifetime could lead to you paying more into the policy than it will pay out.

The table below shows the price breakdown for a joint whole of life policy.

Quotes are based on non-smokers for £100,000 of cover:

If joint whole of life insurance seems well suited to meet your needs, contact Reassured to obtain your free quotes.

Similar to a joint life insurance policy, it’s possible to take out a joint funeral plan which will cover two people simultaneously.

A joint funeral plan can secure the cost of a funeral at today’s prices and only involves making one set of payments, but this will only pay for one funeral.

Once the funeral plan has paid out it will no longer be valid, leaving the surviving partner to fund a second plan.

For this reason, it’s likely to be most beneficial to take out two funeral plans to ensure both partners' funerals are planned and pre-paid for.

Funeral plans offer a range of payment terms, from paying in full to monthly instalments, making this an affordable option.

Funeral plans through Reassured start from just £19.11 per month^*.

No, you’re not legally required to secure life insurance when taking out a mortgage.

If you’ve purchased a house with your partner, and have a joint mortgage, you may wish to take out a joint life insurance policy to protect this shared asset.

If one partner were to pass away, the funds from the policy could be used to help the surviving partner pay off the remainder of the mortgage and remain in the family home.

When taking out joint mortgage life insurance (either a level or decreasing term policy) you can choose to have your policy term align with your mortgage term.

In the case of decreasing term life insurance, you can even have your sum assured reduce inline with your remaining mortgage balance.

Speak to a friendly member of our team about protecting your mortgage.

Only a small number of insurers provide the option to split a life insurance policy or to remove one party making it into a single policy.

There could also be further complications if the policy is written in trust.

If written in absolute trust, it’s unlikely you’ll be able to make changes to the policy (such as the named beneficiary) if the policy was signed over to you (so your ex-spouse could still receive the pay out if you were to pass away).

When cancelling your policy, any premiums paid in will be lost and you may face having to pay higher premiums if you’re at an older age.

However, taking out a new policy will allow you to secure the right amount of cover to meet your new circumstances and any new financial commitments you may have as a result of your divorce.

If you find yourself in this position, get in contact with an independent life insurance broker who can help you find the best solution.

Yes, taking out joint life insurance with a business partner offers protection for the business to remain functioning should the worst happen to either party.

If the worst were to happen, the pay out could be used to pay off business loans, invest in a new partnership or simply to maintain the running costs of the business.

You may wish to secure a separate single policy to protect your own personal financial obligations such as family living costs and/or a mortgage.

Yes, a joint life insurance policy can be written in trust.

Writing your life insurance in trust passes the rights of your policy over to a trustee, similar to the executor of a Will.

When writing joint life insurance in trust, it’s commonplace for both parties to detail each other as the main beneficiary.

This allows both policyholders to agree on how the proceeds should be spent (for example, to cover the remaining mortgage balance).

At Reassured, we offer a free trust writing service on the majority of the policies we arrange, ensuring peace of mind that the process has been completed accurately.

[1] https://www.moneyexpert.com/life-insurance/divorce/

^*£19.11 per month pricing includes a £75 discount only available to Co-operative members and is based on a 50-year-old purchasing a Co-operative Simple Funeral Plan at £3,020 over the maximum term available of 25 years (total amount repayable £5,733.40) as of 1st March 2021