Apply for Joint Life Insurance Today With Lending Expert!
If both you and your partner are looking for life insurance, joint life insurance is for you! Speak to our team of professional advisors at Lending Expert to find the best policy to suit your needs.
- Joint life insurance covers two people, but only pays out once.
- Joint life insurance is usually either a first death policy (payout after the first death) or a second death policy (payout only after both people have died).
- As with most types of life insurance, you can have level term, whole of life, or decreasing term joint life insurance cover.
- A joint life insurance policy cannot be divided if a couple separates. The existing policy would need to be cancelled and two separate new policies would need to be created.
What Is Joint Life Insurance?
Joint life insurance is a type of life insurance policy that covers two people, but only pays out once. Typically, this payment will be a lump sum that goes to the survivor after the first person dies within the term of a policy. When the joint life insurance policy ends, there’s no further life cover for the survivor.
Joint life insurance could be a cheaper option than two single policies for: married couples, long-term partners and business partners. It’s really important to consult a professional when deciding which type of life insurance best suits your situation. That’s why we recommend speaking to a member of our expert team who can help choose the best policy for you.
How Does Joint Life Insurance Work?
A joint life insurance policy will only pay out once. If you were to both die at the same time – for example, in a car accident – any dependants would receive one lump sum payment from a joint policy.
When the money is paid out depends on how your policy is set up. Policies are usually set up as:
- A First Death Policy – a pay-out happens after the first death in a couple. After that, the other person will no longer be covered.
- A Second Death Policy – a pay-out is made only after both people have died (as long as the premiums have been paid).
What Are the Types of Joint Life Insurance?
There are several types of joint life insurance, including the following:
- Level Term Life Insurance – a cash sum is paid out if you die before the policy ends.
- Whole of Life Cover – this policy lasts until you die and will pay out no matter when that happens.
- Decreasing Term – the pay-out decreases over time. This type is often taken out to cover the decreasing amount needed to pay off a repayment mortgage.
The type of policy that works best for you will depend on your individual circumstances, like your mortgage situation or whether you have more than one child. We recommend having a chat to a member of our team of expert advisors. They can help you work out which type of joint life insurance cover is the best for your situation.
What Are the Advantages of Joint Life Insurance?
- A joint life policy might be cheaper than two single life cover policies, but again that will depend on your circumstances. Consider whether both of you have the same need for life insurance and if you both need to be insured for the same amount.
- A joint life policy could be an option to cover the mortgage repayments after the death of one of the people covered.
- Another benefit of joint life insurance is that the payment to the surviving partner can be fast tracked because you’ve already arranged who will receive the pay-out if the worst were to happen.
What Are the Disadvantages of Joint Life Insurance?
- A joint life insurance policy will only pay out once, whereas separate policies would pay out twice.
- Pre-existing medical conditions can drive up premiums for both of you as this is a joint life insurance policy.
What Happens if a Couple With Joint Life Insurance Separates?
With a joint life insurance policy if you were to split up with your partner then your policy can’t be divided. In that situation, you’ll need to cancel the existing joint life insurance policy and set up two new ones. As you’ll be applying for a new policy at a later stage in your life, this could result in a higher premium.
Committing to a joint life insurance policy is a really big decision to make and shouldn’t be done without considerable thought. We would always recommend speaking to a professional to discuss whether or not a joint life insurance policy is the best option for you.
How Is Joint Life Insurance Different to Single Life Insurance?
Joint life insurance cover is different to standard life insurance cover as it covers two people rather than one. Many couples spend time trying to decide whether joint or single cover would be best for them.
Talk to one of our expert advisors to discuss all of your options when it comes to life insurance.
How Long Does a Joint Policy Last?
Your joint life insurance policy is set for a fixed amount of time, say 10 or 25 years, unless it’s whole of life cover. This amount of time is also known as the ‘term’, which just means the amount of time the policy lasts for.