What is a Joint life insurance and how does it work?
Joint life cover is a policy that is designed to cover a couple rather than an individual. It suffers from a lot of negativity because it can stand up poorly against two individual policies, but if used correctly, there are advantages of joint life cover that may not be immediately obvious.
A joint life insurance policy covers two people and pays out when the first person dies. The second person is then left without cover.
Single Vs Joint life cover-which is best?
Almost all the advice you get, says that single life cover is best and that two singles is best to cover two people. Two standard individual policies payout whenever either person dies. At no point is one of the parties without cover. But that’s only almost, not in every situation that would be the right answer!
Suppose only one person is earning and the other stays home to look after the kids it is so tempting to assume that only they need life insurance – after all, the other partner isn’t bringing in any money, so they don’t need a policy, right? Wrong!. Once you get into the concept, it is easy to see how much value the other person brings, after all, if they were to be gone, the working partner might find themselves needing to leave work to look after the young children, or pay for help.
So, two single policies is right, then? One for each person?
No. Two single policies are expensive – more expensive than the joint cover and don’t accomplish what you are after any better. The most important thing is that the surviving partner can look after the family – that is the aim you are trying to achieve, and you get that by making sure whoever dies first is covered so that the mortgage is paid off and there’s money available for the next ten years or so.
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