Many people take out a life insurance policy to make sure that if they die, their loved ones will be able to financially support themselves. A joint life insurance policy covers two people, and pays out to the surviving partner in the event of either's death.
What is joint life insurance?
Joint life insurance works in much the same way as standard life insurance, which pays out to dependents in the event of the policyholder's death. With joint cover, two people are covered (usually a couple, this doesn't have to be the case) by the same policy.
Benefits of joint life insurance
It will almost invariably be cheaper to take out joint cover than it would be to cover two individuals separately with their own policies. This is because joint policies will only pay out once, on what is generally called a first to die basis.
If you have fewer dependents (e.g. if you're a couple with older children), or if you only need the pay-out to cover things like funeral costs and help with single debts or day-to-day expenses, this can be the most cost-efficient form of life insurance.
What kind of life insurance is best for couples?
No two couples have exactly the same needs or financial circumstances, and there are a few considerations to keep in mind:
How much cover do you need?
Joint life insurance policies are cheaper than two separate policies, but they offer less cover, since the policy expires after the death of one of the policyholders. If you've still got young kids, and are looking for a life insurance policy to cover the costs of their upbringing, then having separate policies for yourself and your partner will guarantee that you dependents are more financially secure should you both pass away.
How much can you afford to spend each month?
More cover is always nicer, but it comes at a cost, and so trade-offs have to be made. Joint life insurance is generally preferable for the budget conscious.
How can Money Expert help you find the right joint life insurance policy?
Money Expert will enable you to compare quotes from leading life insurance providers, so you can see exactly how much you'd pay for the cover you need, and choose the policy that's right for you. Our comparison service is totally free, and totally impartial.