Should I get joint life insurance or 2 single policies?
Life insurance is a great way to provide peace of mind that your dependents will be financially cared for in the event of your death.
But if you are in a long-term relationship, is it best you take out a joint policy or two single policies?
When so much is done as a couple, from joint bank accounts to joint mortgages, it might seem logical to take out joint life insurance too.
However, this is not necessarily the best option, so it is important to understand the ‘pros’ and ‘cons’ of each option.
What is the difference?
- A joint life insurance policy will cover both parties under the same terms
– You pay one premium each month
– You will have one set of paperwork, one insurer and one number to make a claim
- On a separate insurance policy, the two of you are covered independently
– You receive two separate pay outs
– This gives you the freedom to pick the insurer that best meets your needs
– The cost of separate policies is slightly higher than a joint policy, but this is not usually a significant amount.
Issues to be aware of with a joint policy
Despite the relative simplicity of insuring yourself and your spouse with a joint policy, there are some drawbacks that you should make yourself aware of:
Only pays out once
- A joint policy will only ever pay out once, (normally upon the first death)
- If you and your spouse were to die together, your beneficiaries would still only receive one pay out
- However, if you were insured separately, your beneficiaries would have received two pay outs.
The policy cannot be divided
- If the relationship breaks down, your joint life policy cannot be divided
- If you split up, either one person will need to carry on paying in, or the policy would come to an end
- There could be issues with who is entitled to the pay out, particularly if one party remarries and has children.
Could force one partner to pay over the odds in future
- Because a joint policy only pays out once, cover would come to an end after one party dies
- This would leave the remaining partner uninsured and seeking a new policy whilst older, meaning higher premiums
Are separate policies the way to go?
Yes. We believe in most circumstances having 2 single policies would be more beneficial.
Separate life insurance policies would ensure that both parties are adequately covered for the duration of their policy. It would protect dependents with double the cover protection too.
It also provides more freedom for each person to find the right policy for their unique needs. What’s more , f your relationship does break up, little needs to change as the policy can go with you.
Why use Reassured to secure your life insurance policy?
- We have years of experience securing 100,000’s of policies
- Life insurance is what we do, (it is all we do)
- We will search the market on your behalf, finding the most competitive quotes
- 13,500 cannot be wrong! We have an ‘Excellent’ average Trustpilot rating – 9.6/10
- We are completely independent, impartial and will never charge you a fee
- There is no obligation for you to take out a policy with us
- We are a non-advised brokers. We just listen to your unique circumstances and find the most suitable quotes.