If you're looking for protection as a couple, you might find yourself toying between single and joint life insurance. But which is best?
While there's no wrong choice, when it comes to life cover, one option may be better suited to your situation than the other. You may even prefer to have a combination of both. So, it's only right to compare their strengths and weaknesses.
In this guide, we'll explain how both types of life insurance work as well as their pros and cons. We'll also look at how each could be right for you depending on your circumstances.
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What is joint life insurance?
Joint life insurance covers two people under a single policy, typically couples. It provides a one-off payout if one of the policyholders dies during the term (after a successful claim is made). This payout usually goes to the surviving partner, offering financial support at a difficult time. Once the policy ends, it's up to the surviving partner to decide if they wish to take out another policy.
There are two specific types of joint policies. First death, which pays out after the first death in the couple. The other option is second death, where the policy pays out once both policyholders have passed away.
It's often ideal for:
Couples with a joint mortgage or shared debts
Married or cohabiting partners who want a simple, affordable way to protect each other
People looking for a cost-effective alternative to two separate policies
You don't need to be married to have joint cover, making it suitable for couples of all types, even friends or business partners.
What is 'single' life insurance?
A single life insurance refers to a policy used to cover one person, paying out to their chosen beneficiaries once they pass away, after a successful claim. The policyholder is responsible for paying one set of premiums each month throughout the length of the policy.
There are two main types of single life insurance. Term life insurance is the most common. It covers the policyholder for a set amount of time, usually between 5-50 years. The policy will pay out so long as the policyholder dies within the term and the claim is successful. If they survive the term, the policy expires and no payout is made.
The other option is whole life insurance (also known as 'life assurance'. Unlike a term policy, it has no expiry date, lasting for as long as you live, so long as you continue to pay your premiums. Because of this, it is often more expensive but offers greater reassurance that your loved one will have the support they need if anything happens to you.
It's usually purchased by people who:
Want to provide financial security for children, a spouse or dependants
Have individual financial responsibilities, such as a personal mortgage or loan
Prefer a personalised policy tailored to their own health, age, and needs
Are not in a relationship, or want separate cover from their partner
The insurance products offered by Cavendish Online have no cash-in value at any time. If you stop paying your premiums, your cover will stop, your policy will end, and you will receive no benefit. For term life insurance, if you have not claimed before the end of your chosen policy term, the policy will end, and no benefit will be paid.
Pros of single life insurance
Comprehensive cover for families
Having two life insurance policies can provide greater financial protection for your loved ones. Unlike a joint policy, which pays out only once, individual policies can offer two separate payouts.
For example, the first payout could be left to help the surviving spouse cover various expenses. Whereas the second payment could be left to their children, acting as an inheritance.
More flexible
A single policy can be tailored to your needs, allowing for different cover amounts, terms, and beneficiaries. This can make it easier to adjust your policy if circumstances change, such as after an important life event. You can choose a policy term for as long as you think you need cover
Potential for multiple payouts
Essentially, two policies can mean two payouts. Both policies can pay out if both policyholders pass away. This, in turn, can mean your family has double the financial support compared to a joint policy, which is limited to one payout.
Cons of single life insurance
Typically more expensive
Having two single policies could potentially cost more overall than a joint policy. Since each person applies separately, premiums are calculated individually, so if one person is older, a smoker, or has a pre-existing condition, their premiums may be significantly higher. In this case, a joint policy could be a more affordable option.
More paperwork
With two policies come two premium payments, two sets of documents and agreements. This can be slightly more time-consuming to manage, especially if your policies renew at different times or require regular updates. It could be even more chaotic if you are with different insurers.
Separate applications
Each policyholder must go through the application and underwriting process separately. This includes completing health and lifestyle questionnaires, which can take more time than applying for a joint policy. So while your application could be seamless, your partner's may take longer if they have a medical condition or complex health history.
What our customers say
Pros of joint life insurance
Cost-effective for couples
With a joint life insurance policy, you and your partner pay one premium for cover each month. Depending on health and lifestyle factors, this could be cheaper than applying for cover separately. While the payout amount may be less than two single policies combined, it could work out cheaper, ideal if you're looking to buy on a budget.
Simplified policy management
Managing one policy is easier than juggling two. You only have to deal with one provider, one set of documents, and one payment schedule. This makes things more straightforward, especially useful for couples looking for a no-fuss approach to cover.
Useful for couples with shared finances
Joint policies work well for couples who share major financial responsibilities, such as a joint mortgage or loan. If one partner passes away, the payout can help the surviving partner cover living costs, debt repayments, or childcare expenses, without the burden of two separate policies.
Cons of joint life insurance
Only one payout
A joint policy provides a single cash lump sum, regardless of whether you have first death or second death cover. Depending on this amount, it may not be enough to cover future expenses as well as current. In this case, two single policies may offer better protection.
Policy could end due to separation or divorce
No matter your feelings for one another, there's always a possibility that things could change later on in your life. If a couple separates or divorces, the policy may need to be cancelled or rewritten, potentially leaving one or both partners without cover.
For more information, see: What happens to joint life insurance after divorce?
Complications when reapplying
Once the policy has ended, you may find it difficult to receive cover, especially if you’ve aged or developed medical conditions. What once was an affordable option could become significantly more expensive, and in some cases, you may even struggle to qualify for the same level of cover.
Factors to consider when choosing
Before you decide on whether to buy a joint or single life insurance policy, it's worth looking at your personal circumstances. For starters, which option is the most affordable in terms of protecting your partner or dependents? While the cheapest option isn't always the best, it can be appealing for couples on a budget.
Many couples choose to have joint life insurance to cover their long-term financial needs, such as a mortgage. If either partner dies, the other will have the money to cover future payments or the payout of the mortgage in full.
While there are specific types of cover for mortgages like decreasing term life insurance, it often makes sense to have a joint policy instead.
Another aspect couples tend to consider is what will happen if they separate or get divorced. In such instances, you may prefer to have separate policies so you don't have to cancel your policy later on. You may also consider future plans, such as having children, which can impact how much cover you need.
Overall, the best policy will be the one that complements your current and future circumstances as well as the needs of your loved ones.
Can you have both a joint and a single life insurance policy?
Many couples choose to have joint life insurance to cover their long-term financial needs, such as a mortgage. If either partner dies, the other will have the money to cover future payments or the payout of the mortgage in full.
While there are specific types of cover for mortgages like decreasing term life insurance, it often makes sense to have a joint policy instead.
Another aspect couples tend to consider is what will happen if they separate or get divorced. In such instances, you may prefer to have separate policies so you don't have to cancel your policy later on. You may also consider future plans, such as having children, which can impact how much cover you need.
Overall, the best policy will be the one that complements your current and future circumstances as well as the needs of your loved ones.
It's possible to have a single policy as well as a joint policy. Some people opt for this to increase their level of cover or to make sure their children or other dependants are protected separately from their partner.
Keep in mind that you’ll need to manage multiple premiums and policies. You'll also need to pay a premium as well as for the joint policy.
Can I transfer a joint life policy to a single policy?
In most cases, insurers won't allow you to directly transfer a joint life insurance policy into a single policy. If your circumstances change, such as after a separation or divorce, your insurer may be able to split the policy, but you would need to check with them directly. If splitting the policy isn’t possible, you may wish to cancel your plan and start a new one.
Doing so will involve going through the application process again, and depending on your age or health, premiums could be higher. If you still share responsibilities or have children, it may be worth keeping the policy for their sake.
Get advice on joint life insurance
Joint life insurance can be a simple and cost-effective way for couples to protect their shared future. Speak to one of our professional advisers today for expert guidance and tailored recommendations.
We’ll answer your questions, explain your options, and search the market on your behalf to help you secure the cover that’s right for you.
If you’re in good health and looking to buy life insurance, you can apply for a quote online. For other types of joint cover, or if you have a medical condition
You can get a get a free personalised quote with one of our expert advisers by calling us on
01392 436193
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