Joint Life Insurance
If you are interested in getting joint life insurance or find out what options are available to you then our experts and providers can help.
What is joint life insurance?
Joint life insurance offers a form of temporary protection for a selected period of time at a fixed rate of premium. If the policy holder passes away whilst the policy is still active, then a death benefit will be paid to the beneficiary. Joint life insurance is an affordable way to put in place a substantial amount of cover for a set period of time.
How does it work?
The most common type of joint life insurance is first death cover and this is a form of term life insurance which is a policy that is put in place for an agreed number of years and will only pay out a death occurs during this time.
First death joint life insurance will payout on the first death during the term of the policy which means that the surviving policy holder and their family will receive the agreed payout from the policy. There is another form of joint life insurance known as second death cover and this will pay out when the second policy holder passes away. This form of cover is often chosen to cover the things such as inheritance tax and to help support any children who are left behind.
What are the features?
There are many features that come with joint life insurance
- The policy could pay out a cash lump sum should you die during the term of the policy.
- The cash sum remain exactly the same for the duration of the policy
- Unless any changes are made to your policy, your monthly payments will continue to stay the same.
- If you are diagnosed with a terminal illness you will receive an early payment, however, an early payment will not be paid if you are in the last 12 months of your policy.
- Whilst your application is processed, free accidental death benefit will be available for up to 90 days.
- A joint life insurance policy is not a savings or investment product which means that unless a claim is made it has no cash value.
What are the benefits?
There are many benefits that come with a joint life insurance policy that a single plan cannot offer below are the benefits of choosing joint life insurance cover.
- For couples, this is the most affordable option because it is cheaper than having two single policies.
- Joint life insurance cover offers peace of mind because both parties are protected, regardless of which party passes away first, the other will receive a payout to help secure them financially.
- There is extra protection offered than that offered by an individual policy held by the person who has the highest income. Even if the other partner stays at home, if they were to pass away there would be costs such as child care to take into consideration.
- The policy is renewable once the agreed term ends. This is a big benefit because one the insurance is agreed, it will offer certainty and financial independence to the surviving party and any children.
- If someone is diagnosed with a terminal or critical illness then financial assistance will be available. This is a situation that can cause a lot of stress which means that it can really affect a relationship and a household in a negative way. Joint life insurance offers security and stability.