Joint Life Insurance: Pros & Cons

If you share financial responsibilities with a partner, joint life insurance can be simple and cost-effective. This includes sharing a mortgage, rent, or family expenses. Rather than paying for two separate policies, a joint policy can protect both of you under one plan.

Though it’s often the cheaper and more convenient option, it’s not always the best fit for every couple. So before you decide if joint cover is right for you, there are some key factors to weigh up first. We’ll break down the main pros and cons of joint life insurance to help you make an informed choice.

What is joint life insurance?

Whereas a standard life insurance policy covers one person only, joint policies cover two people instead. That means you only pay one set of premiums, which can often make it a more affordable option for couples or partners.

Joint policies work in two ways: either as a first death policy, which pays out on the first death, or as a second death policy, which pays out once both policyholders have passed away.

First death policies tend to be more common, as they help ensure the surviving partner or spouse has financial support to maintain their lifestyle, keep up with mortgage payments, or cover other ongoing costs.

Pros of joint life insurance cover

More affordable

One of the main advantages of joint life insurance is cost. As it only pays out once, it’s usually cheaper than buying two single policies. For many couples, this can be an appealing way to get cover without stretching the monthly budget.

Simple and convenient

With just one premium and policy to manage, a joint policy can be easier to keep track of than two separate policies. This can be especially helpful for busy households that prefer less admin.

Suitable for shared costs

Joint policies are primarily designed for couples, especially those who share expenses like a mortgage, rent, or living costs. If either one of you passes away, the payout can help the other fund those key commitments.

Quick payout on first death

Most joint life insurance policies are first death, so the payout is made as soon as one partner dies. In doing so, it can provide the surviving partner with immediate support to manage costs such as mortgage repayments or household bills.

Peace of mind

Above all, it offers reassurance that your loved one won’t be left struggling financially if the worst happens. Knowing you have a plan in place can help to bring comfort to both of you.

The cons of joint life insurance cover

Only one payout

A joint policy typically ends after the first death and only pays out once. That means the surviving partner would need to arrange new cover if they still want their own life insurance policy.

Limited flexibility

If your circumstances change, say for example, your income increases, or your family grows, adjusting the cover can be tricky. Joint policies don’t offer much room to tailor your cover to changing needs.

Can't be tailored to cover individuals

Under a joint policy, both partners are covered for the same amount, even if one earns more or has greater financial responsibilities. This can make it less suitable if one partner needs a higher amount of cover. In this case, they benefit from having a policy of their own, like term life insurance or whole of life cover.

Potential issues after separation

If your relationship ends, may not be possible to split a joint policy. Some couples may need to cancel and take out new individual cover, which can be inconvenient and sometimes more expensive. For more information, please see: What happens to joint life insurance after divorce?

Replacement cover could be more expensive

Following a successful claim, the surviving partner may find that premiums may be higher due to age or health changes. For example, if you've developed a medical condition between policies, you're likely to pay more for a new policy.

When joint life insurance might be a good fit

The type of life insurance you decide on ideally should match your goals and financial circumstances. Joint cover, in particular, can be ideal for you and your partner if:

• You share financial commitments such as a mortgage or rent.

• You’re both of similar age and health.

• You want affordable, straightforward protection.

• You prefer managing one single policy together.

If you're not sure what type of cover is right for you, browse our guide on: What type of life insurance do I need?

Can you add critical illness cover to a joint policy?

Critical illness cover can protect you and your family financially in the event you are diagnosed with a serious medical condition. Many insurers allow you to add to a life insurance policy, though doing so will increase your monthly premiums. The payout would also usually be made only once, similar to the main life cover.

Life insurance advice is just a call away

For personalised guidance, you can speak with one of our advisers today. can review your financial circumstances, dependents, and long-term goals to recommend the most suitable type of cover. They can also help you compare and understand policies so you have the right level of protection in place.