Is it better to take out a joint cover instead of 2 separate policies?
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Is it better to take out a joint cover instead of 2 separate policies?

Joint life insurance policies are cheaper as compared to 2 single policies but only slightly cheaper. They would pay out upon death of either of the partners & would then end. 2 single policies on the other hand would pay out twice.

So joint policies are suitable for couples with no dependants whereas if you have children whom you’d like to leave money for it’s advisable to consider 2 separate policies for they would pay out twice.

Let’s understand this with a simple example. So if Mr & Mrs Jones decided to go for a joint policy worth £100k over 20 years & they were quoted £20pm for this cover, the policy will pay out £100k should either one of them were to pass away during the term & the policy would, at that point, end. On the hand if they go for 2 separate policies worth £100k each over 20 years, the difference in price wouldn’t be much, so instead of £20pm they’d probably end up paying only about approx. about £25pm, but in terms of the sum assured, they’d have double the cover should anything happen to both of them during the term.

So if you have a tight budget & all you want is to protect each other in the event of death, a joint policy is probably your best bet, but if budget isn’t your problem & you have dependants or even grown up children, 2 separate policies are advisable.

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