2 min Read
03 Nov 2016

Should we take out single or joint life insurance policies?

Should we take out single or joint life insurance policies?

Should we take out single or joint life insurance policies?An important element of getting your finances in order is to make sure, if others are reliant on your income, that you are fully covered in the event of death. There is sometimes confusion with couples, or business partners, as to whether they should take out single or joint life insurance policies.

There are benefits and drawbacks with both types of policy and these are explained below.

Single life insurance

  • single life insurance policies will cover each partner in the event of death
  • if both partners die within the term of their policy then two amounts will be paid out
  • different terms and sums assured can be arranged on each policy
  • no need to insure both partners in a marriage or business
  • often more expensive than joint policies - BUT NOT ALWAYS!
  • in the event of the first death life cover will still exist on the partner
  • if partners no longer live together they can take ownership of their individual polices

Joint life insurance

  • only one sum assured will be paid out in the event of death
  • payment will normally be made in the event of the first death
  • if payment is made during the term the surviving partner will have no life insurance cover, replacing this cover could be more expensive due to age or health
  • generally cheaper than two single policies
  • if both partners die at the same time then only one amount is paid out, if there are dependent young children then two single policies would provide extra cover

How does the cost of single and joint life insurance compare?

Different insurance companies will assess individual applications differently. So I suggest that you obtain a joint life and then separate life insurance quotes using  our preferred online life insurance comparison tool.

Then you will know for certain which route is best for you.

Get an instant life insurance quote

Get an instant life insurance quote in seconds, comparing the whole market

Find the best value life insurance policy

The table below shows examples of monthly premiums for £100,000 of level term insurance over a 25 year term.

Male Female Joint Life
Age 35 £6.64 £6.34 £11.12
Age 45 £14.43 £13.26 £24.67
Age 55 £37.52 £35.78 £69.27

Further reading:

Do I need mortgage life insurance?

How can I reduce my life insurance premiums?

Article overview

Key points

  • There are benefits and drawbacks with both types of policy and these are explained
  • Single life insurance
    • single life insurance policies will cover each partner in the event of death
    • different terms and sums assured can be arranged on each policy
    • in the event of the first death life cover will still exist on the partner
  • Joint life insurance
    • only one sum assured will be paid out in the event of death
    • payment will normally be made in the event of the first death
    • generally cheaper than two single policies
  • How does the cost of single and joint life insurance compare?

Written by Liam

Over 30 years experience in financial services, residential lettings and property sales. Director of a leading national estate agency chain, until leaving in 2008 to pursue other commercial interests. Vast experience in new business development, business change, management development and business strategy.

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