Joint Life Insurance

Fill in the form below for a FREE, no obligation quote NOW!

If you’re looking to take out life insurance for financial protection, a joint policy can be a fantastic way to obtain lower premiums. Here, we provide an overview of this type of policy and delve into who qualifies, what it covers and how much it costs.

What is joint-life insurance?

Joint-life insurance is a policy where one premium is paid, but two policyholders are covered simultaneously.

As a result, this is a popular product for:

  • Married couples
  • Civil partners
  • Business partners

How does joint-life insurance work?

  • Icon For CPU#1

    Life insurance calculator

    Estimate the size of life insurance cover you might need based existing and future obligations.
  • Your total life cover estimate
    £100,000
    Let us help you find your best quotes

Two parties apply for a joint policy cover. Like a regular life insurance policy application, a risk assessment regarding both parties is made before approval.

These assessments take into account age, health, occupational risk, smoking status and medical history.

The policy remains in place over an arranged period or if one or both parties pass away. Note that in any scenario, a joint-life insurance policy only provides one payout.

The options are first death – where the payout is made to the other policyholder when one dies – and the other is a joint life last-survivor policy- where payment is only made after the death of both parties.

How much does joint-life insurance cost?

A joint life insurance policy can be up to 40% cheaper than taking out two individual policies. This benefit makes it an excellent product for partners on a budget.

A joint life insurance policy can be up to 40% cheaper than taking out two individual policies.

Here we look at the average cost for a joint life insurance policy over a 20-year term. The calculation is based on a healthy, non-smoking applicant and a cover of £150,000.

  • 30 years old: Average cost of around £10 per month
  • 40 years old: Average cost of about £21 per month
  • 50 years old: Average cost of about £50 per month

In these cases, getting a joint life insurance policy is much cheaper than taking out individual ones. It’s also evident that you should consider a life insurance policy earlier to secure a more affordable premium.

However, the situation changes if one party is older, in poor health, or in a hazardous occupation. If this is the case, it’s worth getting in touch with a provider to compare whether a single or joint-life policy is right for you.

What does it cover?

We compare plans from the leading life insurance providers

You can use joint life insurance for financial protection should the unexpected happen. Costs covered include:

  • Mortgage payments
  • Living costs
  • Debt payments
  • Funeral expenses
  • Inheritance tax

You should note that if one party passes away, the other party will be left without any insurance. This could mean that they will face higher premiums if they need to obtain a new policy later in life.

Make sure you and your partner discuss the policy thoroughly with the insurance provider to ensure that it covers everything and only what you want.

Doing this will ensure that you avoid any nasty surprises or that you’re not paying for more than what you need.

Term-life vs whole of life

Joint-life insurance is available in two options – term-life and whole of life.

In a term-life policy, the insurance only covers you for a set period, such as until your mortgage payments are finished or when your children are no longer dependent on you.

With this option, you can opt for level term insurance, where there is a fixed-sum payout throughout the specified period, and decreasing term policy, where the payout value decreases along with the insurance term.

A whole of life policy provides coverage until you pass away. This type of policy tends to be more expensive since there is a guaranteed payout no matter what.

This option is excellent if you want to leave some inheritance to your partner or cover funeral costs, which currently cost an average of just under £5,000.

Family insurance

Suppose you’re a married couple or civil partner looking to enter into a joint-life insurance policy to provide financial protection to your family. In that case, you could consider a family insurance policy.

A joint policy will ensure that the contributions of both parties to the family are covered should the unexpected happen. This type of product can be a great tool to ensure that your family is protected if one partner dies and the other needs to return to work or maintain the same lifestyle level.

If you’d rather have monthly payments instead of a large lump sum payment, you could opt for a family income benefit. This policy will ensure that the surviving partner can better budget and manage funds.

How does divorce affect the policy?

In the case of divorce, your joint policy will be affected. There are two typical outcomes:

  • The insurance policy comes to a natural end, and both parties obtain single life insurance plans.
  • One party agrees to assume ownership of the policy. However, this option is not as common.

Should I get joint-life insurance?

A joint-life insurance policy can provide couples and partners with an affordable financial protection tool should something happen. It ensures that the surviving party can cover mortgage payments and living expenses, and it allows businesses to continue should a business partner pass away.

However, the level of benefit depends on the specific individuals. If one party is older or in poor health, it might be better to take out single life insurance policies. Either way, it’s always a good bet to get in touch with a provider and go through your options.

Family Life Insurance