What is joint life insurance?
As its name suggests, a joint life policy is one that insures two lives. It pays out when the first person dies within the term of the policy and at that point, the policy will then lapse. Cover for both lives can also be arranged by having individual policies.
If you only need one payout joint cover may be the best option as it tends to be cheaper than buying two separate policies. However, it must be remembered that in the event that one of the policyholders passes on, then the survivor will be left uninsured.
In addition, taking out two separate policies (which may not necessarily be that much more expensive) would be easier to administer in the event of separation or divorce.
The Reality
According to the Office for National Statistics information on registered deaths in England and Wales in 2011, married couples in their 50s are up to four times more likely to pass away than their married counterparts in their early 40s. So making sure you have sufficient protection in place for the both of you for an appropriate term is important.
For more information on the differences between joint life insurance and individual policies, feel free to have a read of our guide.
Jargon Buster - life insurance terms explained
- Sum assured/cover - this is the amount that you're insured for, so the amount that would be paid in the event of a claim
- Lives - the individuals/people that are covered on the policy
- Assurance - exactly the same as insurance
- ANB - age next birthday
- Reviewable premiums - this is where usually after the first 5 years the insurer has the option to review your premium based on changes in the market, as opposed to personal circumstances
- Guaranteed premiums - the same monthly premium amount throughout the policy (unless you opt for Critical Illness cover, all the policies we show you are guaranteed).
- Risk - an evaluation of all the elements of your policy that decides what your premium will be, a higher risk will give you a higher premium
If you're not quite sure how much cover you'll need, why not have a look at our life insurance calculator, it might help you figure out what would be the right amount of cover for you.
