When couples take out life insurance, a common question is whether or not to take the insurance out as a joint policy or as two single policies.
As there are different benefits to both types of insurance, we’ve put together the following guide to help you make the right decision for your family.
The difference between joint and single life insurance…
The main difference between single and joint life insurance, and perhaps the most obvious, is that single covers one person and joint covers a couple. At first glance, it may seem beneficial to get life insurance cover for you both on a joint cover policy, but there are conditions of this type of insurance that may not be suitable for you.
For example, joint life insurance often works on a ‘first death’ basis. This means that the policy would only pay out when the first person in the couple passes away. After this, the policy would no longer be valid. For this reason, single life insurance may work out better for a couple, as there would be two guaranteed pay outs when both people pass away.
Another way to highlight this is if a couple were to tragically pass away together in a car accident. If this couple were insured on two single policies, the dependents would receive two pay outs. If, however, the couple had joint life insurance, only one pay out would usually be made.
It is important to note that if a person were left without insurance after their spouse has passed away, they may find it more difficult to then purchase life insurance, as premiums usually increase with age.
A benefit of having a joint life insurance policy is if you and your partner both have the same insurance needs, this policy could cover you both equally. However, if one of you require a different level of cover, you may find single policies to be ideal, as you can tailor them to your individual needs.
Something else to consider before purchasing a single or joint life insurance policy is the cost. As you might expect, two single policies will normally cost more than one joint policy.
If you are looking for a life insurance quote, let Bobatoo.co.uk help you. We work with the UK’s leading life insurance companies so you get the policy that best suits you and your needs.
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