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Joint Life Insurance

Joint life insurance is a policy that basically covers two lives, but only pays out the sum assured on the first death - then the policy will lapse. The cover will be for a fixed amount for the length of the policy, and will pay out a lump sum if a claim is made.

You can compare joint life insurance policies with Confused.com here.

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Why Would you take out Joint Life Insurance?

The reason why you might take it out is that you may only need one payout, and so 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. Taking out two policies also tends to bring about fewer inheritance tax issues.

 

Further Reading

If you'd like to know more about joint life cover and life insurance in general, then we've got some articles well worth reading:

Find the Life Insurance that's Right for You

How to Work out How Much Life Cover you need

Life Insurance Terms Glossary