Life insurance is one of those things that most people don't think about until they need it. However, if you're married or planning on getting married, then you should definitely consider buying a life insurance policy with your spouse. This way, you'll have financial protection even after he or she has passed away.

If you are thinking about taking out a joint life insurance policy with your partner, here's what you should know...

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Why do people buy life insurance as a couple?

One of the main reasons why couples buy life insurance together is because they want to protect their loved ones in case something happens to them. Though you may be healthy and financially secure, the tables can quickly turn. If you or your partner were to pass away, one of you could be left without any income or savings.

What is joint life insurance?

With joint life insurance, the clue is in the name. It provides cover for two people under a single policy, making it an ideal choice for couples. The benefit is that both partners are financially protected, regardless of who dies first.

There are two main types of life insurance cover that can be purchased as joint policies - whole and term life insurance...

  • Whole life insurance protects you for the rest of your life, paying out a fixed lump sum when you die. Although it is expensive, many families appreciate the peace of mind it provides through a virtually guaranteed pay out. This is providing that you continue paying your monthly premiums.

  • Term life insurance works a little bit differently. The main difference being that it provides cover for a set period of time, i.e 20 years.

The policy pays out a lump sum, providing you die within the agreed policy term. If not, the policy expires and there will be no payout.. Although it doesn't provide permanent cover, it is typically cheaper than buying a whole life policy.

 Joint life policies have two levels of cover - first death and second death...

As you can imagine, with first death, the policy pays out after the first death in the couple. Of course, if you have a joint term life policy, this is dependent on if the death is within the agreed policy term. Second death pays out after both of you die - more suited for a whole life policy.

Learn more about joint life insurance.

Learn more about whole life insurance.

Single vs joint life insurance

Whether or not you choose between taking out a joint or single life insurance policy depends on your circumstances. For example, if you are your family's main source of income, it may make more sense to buy an individual policy. This way, when you die, your family could receive a replacement of your income, helping to cover expenses made in your name.

However, if you and your partner share an income, it may make more sense to buy a joint policy. In this case, either you or your partner will receive a pay-out when one of you dies. This means the survivor has money to cover future payments.

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What Happens If You're Divorced or Separated?

 Should you and your spouse get divorced whilst owning joint cover, there are a few options:

  • Keep the policy: Even if you split up or divorce your partner, you could choose to keep the policy in place if you want to. In this instance, you may only need to contact your insurer if one of you is changing your name or address.

  • See if you can split the policy: Some insurers will allow you to split the policy into 2 single policies, so be sure to contact your insurer first of all to see what they can do.

  • See if you can remove one person: If only one of you would like to keep the policy, contact your insurer to see if the other can simply be removed from the policy.

  • Cancel the policy: If you decide to cancel the policy you won’t receive any compensation on the premiums previously paid. Both parties will then need to take out individual cover if required.

However, with some whole life insurance policies, there could be a surrender value when cancelling it. While not all of your premiums will be returned, you will still receive some money.

Please note that Cavendish Online is not authorised to sell policies with an investment element or cash-in value.

How much life insurance do you need?

When it comes to buying life insurance, you need to take into account the current and future costs your family faces if something happens to you. 

For example, if you are the main source of income for your family, they'll likely require a larger amount of cover. Whereas, if you share an income or your family has plenty of savings, they may only need a limited amount of protection.

You should consider the costs your family may need help with in your absence. The pay out from your life insurance policy can help your loved ones with financial commitments, such as:

If you're looking to save money on life insurance, then you should only buy the necessary amount of cover. Although having more cover may seem like more beneficial, it means you could be paying a higher premium than needed.

If you're unsure on how much cover you need, speak to one of our expert advisors. They can help you find a policy that matches your circumstances, making the decision process much smoother.

How much does joint life cover cost?

While premiums for joint life insurance tend to be cheaper than single policies, there are a number of factors that determine your monthly costs. These can apply to both you and your partner, including:

Smoking is also a defining factor for the cost of life insurance. If you or your partner smoke, you can expect to pay significantly more for cover than non-smokers. However, your premiums could be lowered if you remain smoke free for at least 12 months, or a new, cheaper policy could be obtained

If you're looking for cheaper life insurance premiums, there are a few things you can do - check out our guide to cheap life insurance for more information.

If you're ready to take out joint life insurance, apply for an online quote today. With our online comparison service, you could have a quote in a matter of minutes!

Speak to the experts...

Give our advisers a call today.

Our team of friendly and professional advisers are on hand to help with any questions you may have regarding Life Insurance.

The advisers can also make recommendations tailored to your current situation and will research the market on your behalf, ensuring you secure the cover you need and supporting you every step of the way. 

01392 43 61 93(Monday to Friday, 9am - 5.30pm)

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Life insurance: All the information you need to find the best policy

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