Should I get joint life insurance cover 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 cover too. However, this is not necessarily the best option, so it is important to understand the ‘pros’ and ‘cons’ of joint and separate life insurance.
What is the difference?
- A joint life insurance policy will cover both of you under the same terms and you will pay one premium
– You will have one set of paperwork, one insurer and one number to call if you need to make a claim
- On a separate insurance policy, the two of you are covered independently
– You will, therefore, receive two separate pay outs
– This gives you the freedom to pick the insurer who best meets your needs
– The cost of taking out separate policies can be slightly higher than a joint policy, but this is usually not a significant amount.
Issues to be aware of with a joint policy
Despite the relative simplicity of insuring yourself and your spouse on a joint policy, there are some serious drawbacks that you should make yourself aware of:
Only pays out once
- A joint policy will only pay out once, (normally upon the first death)
- If you and your spouse were to die together, your beneficiaries will still only receive one pay out
- If you were insured separately, your dependents would have received two pay outs.
The policy cannot be divided
- If the relationship breaks down, the life policy cannot be divided
- If you and your partner decide to split up, either one person will need to carry on paying into the policy, or the policy will come to an end
- There could also be issues with who is entitled to the pay out from a joint policy, particularly if one of the partners remarries and has children.
Could force one partner to pay over the odds in future
- Because a joint policy only pays out once, it would come to an end after one party in the couple passes away
- This leaves the remaining person uninsured and seeking a new policy whilst older, forcing them to pay higher premiums
Having separate life insurance policies can mitigate many of these issues, ensuring that both parties are adequately covered for the duration of their policy.
It also gives more freedom to find the right policy for each individual person and means your dependents won’t lose out in the event of a double loss.
Why use Reassured to secure your life insurance protection?
- 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.
Talk to our Reassured consultants on 0808 168 2025 to discuss your options for both joint or individual life insurance cover. Alternatively Start Your Quote online today – it only takes 2 minutes.