Married, Civil partnership or in a relationship and looking to take out life insurance? Do you know about the different options available to you? Read our guide about the difference between single and joint life insurance.
A single life insurance policy covers one person only and pays out the chosen amount of cover if that person dies during the length of the policy. The policy then ends. For example, if a couple has two single policies and one partner dies, then the surviving partner still has their own policy in place. A benefit of having two individual policies is that each individual can be insured for different amounts, depending on circumstances.
A Joint life insurance policy does what it is says on the tin, it covers two lives under one policy. It's worth knowing before taking out a joint policy if it works on a ‘first death’ or ‘second death’ basis. ‘First death’ basis means that the cover is paid out when the first person dies, then the policy would end. This then leaves the surviving partner without cover under that policy. ‘Second death’ basis would pay out after the last surviving person on the policy dies. Before taking out a joint policy, it is worth knowing this policy will only pay out once. However, this usually only involves one application and one regular monthly payment. The cost of joint cover is usually cheaper than two single policies when you add the premiums together, however getting a quote for two single policies is worthwhile to see if you can get them for a similar price to a joint plan.
Before taking out either type of policy it is best to consider what your needs are.
You may want to think about the following:
If you want to discuss your options with a consultant or get a free life insurance quote Click Here.