Joint Life Insurance

Joint life insurance is one policy for two people. Let's learn more about the policy options.

What is joint life insurance?

Joint life insurance involves two policy holders (two individuals) on one policy. However, while there are two people on this one policy, there is only one payout.

Joint life cover is usually paid in the form of a lump sum. Where your beneficiaries can use this payout to pay off a mortgage or other debts, pay for household bills or other everyday items. 💷

How does joint life insurance work?

A joint life insurance policy has two individuals on one policy with one payout. Anyone married or in a civil partnership, or even business partners can get life insurance joint policies. ✌ïļ

While the payout is usually after the first death, there are two different options. First-death or second-death policies.

First-death policies

This means that the payout would be after the first death of an individual in the life insurance policy. At this point, the joint life insurance cover would end.

Second-death policies

With second-death policies, the pay out is applied after the second individual in the policy has passed away. This type of joint cover is most common with whole of life insurance policies.

What could joint life insurance cover?

Joint life insurance policies can cover or pay for mostly anything that you or your loved ones wish. The exact amount will be determined by how much cover you choose to purchase and what your surviving dependents or surviving partner wish to use it for.

A joint life policy can cover:

  • a mortgage
  • tuition fees
  • other debts
  • household bills
  • anything else that a beneficiary would like

Pros and cons of a joint life policy

Pros of joint cover 🎉

Depending on where you get your joint life policy, as insurers have different rules, there can be a few pros. Some pros are below:

  • It could cost you less with some insurers
  • There is only one set of documents to fill out

Cons of joint cover 👎

Here are some cons of joint cover:

  • There is only one payout
  • The surviving partner would need to get a new policy at a new age and health status
  • You can't get different cover amounts for each policy holder
  • You may not get the maximum amount of cover you are looking for

At Bequest, you would pay almost the exact same amount per month for two single life insurance policies but you get two payouts. Therefore, we think it's a great idea for people to get single life insurance.

Which would be the best life insurance for couples?

As a couple, you are able to get either a joint life policy or two single life policies. It really depends on how much cover you are wanting to purchase and what you want to use the payout for. If you can agree on the same amount of cover and same length of term, then a joint policy could be for you.

However, single life policies are more personal and the payout can be used for individual purposes. You also get to keep your policy if your partner dies, whereas with joint policies, you most likely have to get a new policy at a new age and health status.

Choosing the right payout for you 💛

The right payout is very personal and can vary from person to person. You need to look at the amount of cover, the length of term, what you want to use the payout for and the insurer you are going to use to find the right payout for you.

Joint life insurance options 🔐

Term Life insurance

In term life insurance, there are usually three options: level term life insurance, decreasing term life insurance and increasing term life insurance. They all have the option of single life insurance or joint life insurance.

  • Level term means that the amount of cover stays consistent from beginning to end of the policy term you have chosen.
  • Decreasing term means that the amount of cover decreases over the set term. This can be used as a cheaper option or as mortgage payment.
  • Increasing term is where the amount of cover increases over the term.

Whole of life insurance

This cover pays out when you pass away. This is a very expensive type of life insurance but can be useful as there is not a term limit, it covers your whole life no matter when you pass away.

Serious Illness Cover

Serious illness cover, or critical illness cover, can be taken out with a single life or joint life policy. If it's single, the cover ends; if it's a joint policy, when the first person passes away and makes a claim, the policy can continue or end, depending on the terms of the policy.

Income protection insurance

Currently, you can only take income protection insurance out as an individual. The reason for this is because each policy is underwritten on an individual basis taking into account each person's income and personal circumstances.

Mortgage protection insurance

Mortgage protection insurance is also known as decreasing term life cover. This type of cover could help pay off your mortgage if you were to pass away during the cover term. Decreasing cover can be with single or joint policies.

Frequently asked questions 💎

How is joint life insurance different to single life insurance cover?

A joint life insurance policy means there are two policy holders with one payout. A single life insurance policy has only one policy holder, personal to that individual.

What are the benefits of getting a joint life insurance policy?

There is less paperwork to be done with a joint policy. And with certain life insurers, a joint life insurance policy could cost you less. However, at Bequest, two separate policies cost almost the exact same amount per month but there are two payouts.

What are the drawbacks of joint life cover?

With joint cover, after the one single payout, the surviving partner would need to get a new policy at a new age and health status. This will be much more expensive and done at a time where they should be focussed on grieving.

What happens if a couple with a joint policy divorces or separates?

If you separate or divorce with a joint policy, you can continue with your cover as normal if you wish. However, one party usually takes over the policy or the policy is cancelled and both parties find new cover. Some insurers might also offer a 'separation option' as well.

Is a joint policy suitable for non-married couples?

Non-married couples can get a joint policy if they wish, as it is up to the individual. But it could be best to get a single policy that is best for each individual person depending on what they are looking for.

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FF Bequest Limited, trading as Bequest, is authorised and regulated by the Financial Conduct Authority with firm reference number 923791. You can check our authorisation on the FCA Financial Services Register by visiting the following website: register.fca.org.uk . We are registered in England and Wales, Registered office address: Founders Factory, Northcliffe House, London, United Kingdom, W8 5EH. Company Number 12367897.

Regulated by the Information Commissioner's Office (ICO) [ZA662891]. "Bequest" is trademark protected by FF Bequest Limited (UK00003452648). FF Bequest Limited is registered in England and Wales, No 12367897.

0203 916 5433

FF Bequest Limited, trading as Bequest, is authorised and regulated by the Financial Conduct Authority with firm reference number 923791. You can check our authorisation on the FCA Financial Services Register by visiting the following website: register.fca.org.uk . We are registered in England and Wales, Registered office address: Founders Factory, Northcliffe House, London, United Kingdom, W8 5EH. Company Number 12367897.

Regulated by the Information Commissioner's Office (ICO) [ZA662891]. "Bequest" is trademark protected by FF Bequest Limited (UK00003452648). FF Bequest Limited is registered in England and Wales, No 12367897.

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