Single life insurance covers only one person and provides his beneficiary with a lump-sum cover in case he or she passes within the insurance term.
Joint life insurance covers two people (usually married couples) and provides a death benefit in the event one of them passes away. The money is paid to the spouse of the deceased and the insurance automatically terminates.
The Benefits and drawbacks of a Single Life Insurance
Having single life insurance has the following benefits:
- You have the option to choose from multiple policies.
- You can choose the level of cover you want.
- Two policies for two different individuals will pay at the death of their respective policyholders and will pay twice.
- If the partners decide to separate, no complications occur and they continue being covered by their policies.
Drawbacks of single life insurance are:
- Covers only one person per policy.
- Two separate premiums have to be paid on time for both the separate policies.
- In case you change your mind later you cannot emerge the two policies.
The Benefits and drawbacks of a Joint Life Insurance
Having joint life insurance has the following benefits:
- It is comparatively cheaper than single life insurance and only one payment goes to covering both partners.
- The insurance pays out no matter who dies first.
- The policy is not only available to married couples but can be availed by people in long term personal or business relationships.
However, Joint Life Insurance also has the following drawbacks:
- The policy only gives one single payout and does not cover the second policyholder after the death of his or her partner.
- The insurance policy will terminate automatically after the payout has been received.
- In case both individuals pass at the same time, only one payout will be received.
It is important to discuss the suitability of both life insurance policies carefully before making a decision.
We would recommend you to talk to one of our advisers for life insurance quotes.
Any quote that your adviser provides you with will take into account your circumstances, your medical history, as well as your budget!
Call 011-3733-4610 – Monday to Thursday from 11.00 to 19.00 and on Friday between 11.00 and 16.00