What is a Joint Life Insurance Policy?

By Vicki Coleman

Do you know the difference between a single and a joint life insurance policy? Discover which may be best suited for you, joint life insurance or single.

Get the right policy for your circumstances

Married, Civil partnership or in a relationship and looking to take out life insurance? Do you know about the different options available to you? We’ve put together this short guide to tell you about the difference between single and joint policies so you can decide which one is better suited to your needs.

First up, what is single 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.

OK, so now what is joint life insurance?

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.

So here is some good news about a joint life insurance policy, they’re 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.

What type of insurance will work best for me?

Before taking out either type of policy, it is best to consider what your needs are. You may want to think about the following:

  • Amount of cover needed
  • How much you can afford
  • The future and how your dependents would cope financially

If you’re unsure if a joint policy is the right option for you, we’ve put together some more articles about the different types of cover which you can read through:

  • What is decreasing term life insurance
  • What is level term life insurance
  • What is over 50s life insurance
  • What is whole of life insurance
  • What is critical illness cover

I’ve made my mind up and want a quote

Great news, and this is exactly what we’re here to help you with. If you’re ready to compare online quotes for life insurance, then all you have to do is fill in an online form and you’ll be provided quotes from industry leading providers. It’s that simple. Get started now!

Think you know what you want but still have questions? That’s fine to, we can get you connected to an industry expert to discuss the options available to you based on your circumstances.

Get a Life Insurance quote now