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.
A pay out from joint life insurance could be used to cover:
- Remaining mortgage balance
- Rental payments
- Household bills and utilities
- Other daily living costs
- Additional childcare costs
- Funeral expenses
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.