Joint life cover works much like standard life insurance. You choose how much you want to be covered for, and for how long. If you or your policy partner dies during this time, your loved ones get a cash payout.
There are 2 types of joint life cover to choose from:
First death policies pay out on the first policyholder death. The second policyholder gets the payout to use however they want. But after that, the policy ends, and the survivor is no longer covered. This means if they still want life insurance, they have to get a new policy.
These are a good choice for couples who share responsibility for the bills. The payout ensures that the survivor isn’t left struggling to make ends meet if their partner dies.
Second death policies pay out when both of you die. This could be years apart or at the same time but has to be within the cover term of your policy to get a payout. If 1 of you dies, but the other survives after the end of the policy, then they or their beneficiaries don't get a pay-out.
These are ideal for couples who each earn enough to support themselves and their loved ones should their partner die. Here the payout is usually used to support their children if, tragically, both their parents were to die.
Here’s a breakdown of the pros and cons of joint life insurance:
Pros of joint life insurance:
Cons of joint life insurance:
Joint policies are ideal if you’re in a stable relationship and want to make sure your partner, or children, are cared for if either of you pass away.
Single policies are good for ensuring your loved ones are financially secure whatever happens. If you and your partner both died, 2 payouts could pay off your mortgage and support your children. If you and your partner separated, you’d also be able to keep your policy going.
Before you choose a life insurance policy, there are some key things to consider to help you select the best policy for you:
Your budget - how much do you want to spend in payments? Joint life insurance should work out cheaper than 2 individual life policies. But you still need to balance this with your budget – for instance, whole life policies are more expensive than term policies.
Your cover level - how much life insurance cover do you need? You should take time to calculate your joint monthly expenditure, including your mortgage payments and all your outgoings. Look at each of your earnings and think about whether you both need the same level of cover.
Your future is also important. Review your policy/policies from time to time, especially if your circumstances have changed. A relationship breakdown can bring joint life insurance policies to an end, in which case you might decide to get a single life policy.
It’s common for new parents to take out joint life insurance cover. Your little one is going to be financially dependent on you and your partner for a long time to come, and bringing up a child is costly.
If one of you were to die, losing part of the family income could have a big impact, even if it’s not the main breadwinner who passes away. Whoever is left behind might also have to spend more on childcare costs as a single parent.
Yes, a joint life insurance policy can be placed in a trust. If you die during the term of your life insurance, the payout forms part of your estate. This is the sum total of everything you leave behind. Writing your life insurance policy in trust means your beneficiaries can get the full life insurance payout tax-free, even if the estate is over the £325,000 inheritance tax threshold.
Putting your joint life insurance in trust should also allow your loved ones to get the payout faster. This is because funds from the policy can be paid directly to trustees rather than going into the estate.
Your family can use the payout from a joint life insurance policy to cover a mortgage or general living costs.
Joint life insurance pays out only once, after one partner dies or is diagnosed with a terminal illness, where they have a life expectancy of less than 12 months.
Joint policies can be a smart way to save on your life insurance. But some only pay out once, so think about whether they're right for you before signing up. It costs a little more, but the added peace of mind of 2 payouts can often justify the cost.
*Get reward after 6 months of your policy being active. Excludes over 50s guaranteed acceptance policies and can’t be used alongside cashback offers. T&Cs apply. **Restrictions apply, see https://www.amazon.co.uk/gc-legal
£75 Gift Card**
£75 gift card
£75 gift card
pays out an amount that decreases over time, usually in line with your mortgage
pays out a lump sum if you're diagnosed with an illness covered by your policy
covers your bills if you're injured or ill and are unable to work. Short term policies and longer ones available
covers the cost of private medical care, helping you avoid NHS waiting lists to get the cover you need, quickly
cookie usage
We use cookies, some of which are essential to make our website work. For us to use our non-essential cookies, we need your consent. You can consent by accepting all or alternatively, manage your cookies at any time. For more information, read our cookie policy.
