‘It takes two’, a phrase we’ve all heard before, whether that’s because of the popular idiom, or because of Marvin Gaye’s cheesy anthem. The fact that around 60% of the population in England and Wales were living in a couple in 2019[1] suggests it’s a phrase that many of us would agree with.

If you are lucky enough to have found your true ‘partner in crime’, then it's understandably difficult to envision a future without them in it. Perhaps it is even more difficult to think about not being there for them, should you sadly pass away.

So, while it would in no way make up for the loss, knowing that you have the right insurance in place to protect your partner’s finances, should the worst happen, can be a huge weight off your mind, especially if there are children in the picture too.

If you are reading this guide, then you probably already understand a little bit about what life insurance is and why it is important, but perhaps you are unsure whether to take out an individual policy, or a joint policy with your partner.

We are encouraged to share everything with our ‘better half’, right? Is that the same for life insurance too?

This guide will take you through what it means to have a joint life insurance plan, and help you decide on the right type of insurance for you and your partner.

Get your joint life insurance quote now...

What is a joint life insurance policy? 

Life insurance is for anyone and everyone, and there are so many different options when it comes to finding the insurance cover that is right for you. One thing to consider is whether to buy a joint life insurance policy or an individual life insurance policy. Both are similar, in the sense that they provide financial protection for your loved ones, but there are also some key differences.

An individual life insurance plan, otherwise known as a single life policy, is taken out by one person (the policyholder) – if that policyholder dies during the term of the policy, their loved ones would receive a payout. 

A joint life insurance policy covers two people within one plan. Between you, you would pay one monthly premium instead of paying separate premiums for separate life cover. Should one of the policyholders die during the policy term, the surviving policyholder would typically recieve the policy pay out (if the joint policy is on a 'first death' basis). They would then need to apply for a new life insurance policy, should they still require cover. 

Joint or individual life insurance - which is better?

Some couples choose joint life insurance for budget reasons and because it is arguably simpler; you only complete one application and pay one set of premiums, generally making it cheaper than two single policies and often easier to manage.

However, it is worth bearing in mind that there are drawbacks to joint life insurance. Notably, the policy will only cover one partner’s death. So, if one person dies during the policy term, the policy will end for the surviving partner (if the policy is taken out on a 'joint life first death' basis). This can prove problematic in the future, as the remaining partner would be left without cover. The cost of taking out a new life insurance plan generally increases the older you are, so for the surviving partner, taking out a new policy at a later date will likely be more expensive. 

For this reason, you might choose to purchase two single life insurance plans, even though you are in a couple. This way, you both have separate cover, and potentially two policy payouts if you and your partner both pass away.

A further argument of choosing two single life insurance policies is that you can make sure each person's insurance needs are perfectly met. In other words, you can choose the right cover level for each of you individually, based on your specific needs, rather than settling on one amount to cover the two of you. Ultimately, buying two single life insurance plans offers you additional flexibility that joint life insurance can’t.

Both joint and single life insurance policies are there to offer help and support, ensuring the safety of your family’s financial future. The answer to whether a joint life insurance plan is for you really depends on whether it is a good match for your family’s individual circumstances, insurance needs and budget. 

To help you think this through and weigh up your options, call our insurance specialists today. 

Talk to a life insurance expert today...

Do both spouses need life insurance?

The simple answer is, probably, yes.

If one of you earns more than the other, then it is logical to think that the main breadwinner has the biggest need for life insurance, as the financial impact of their absence, and loss of income, would certainly be felt.

However, even if you are not the main breadwinner, you should consider the extra costs that would arise if you were no longer around (these are likely to span beyond your current financial contributions to the family pot!). For example, if you are the main carer for your children, then your partner would need to fund alternative childcare, or take time off work to care for your children themself, which would have a big impact on the family finances.

How much insurance does my family need?

Whether you and your partner opt for a joint life insurance policy or two individual ones, it is important to think through your financial commitments and work out the level of cover you would need to support your loved ones and your lifestyle, should you or your partner sadly die.

Here are some of the costs to consider:

  • Mortgage or rent payments

  • Household outgoings

  • Any outstanding loans

  • Childcare costs

  • Educational expenses

  • Income replacement (however, you might consider taking out income protection insurance for this purpose!)

  • Critical illness cover - some policies include both life and critical illness cover, though both can be taken out individually

  • Funeral costs

For help understanding how much insurance you should buy for your family, give one of our insurance specialists a call, they will be able to give you all the information you need and support you in making the best decision.

Call the team today on: 

01392 436 193

What happens to my joint life policy if we divorce?

Untangling your lives and, particularly, your finances, after deciding to separate can be tricky.

With single life insurance plans, you will most likely only need to change the name of the person due to receive any policy payout, whereas splitting a joint life insurance policy is much more complicated. In most cases, separating joint life cover often cannot be done (though there are some exceptions to this). The most common resolution is to replace the existing insurance plan with a new single policy, or one partner can choose to take over the existing policy, which may be preferable if your health has changed since buying the joint policy initially. 

If you do go through a divorce, then no matter what type of protection insurance cover you have, you should reassess whether it is sufficient for your new circumstances. You may be taking on more responsibility – for example, owning a home or looking after children - and more responsibility can mean more to protect, so you may need a new or updated policy.

For more information, check out our article 'What happens to joint life insurance after divorce?'

How can I buy joint life insurance?

At Cavendish Online, we offer many options to help you find the best insurance for you and your loved ones. You can quote and apply for an online policy yourself, in just a few minutes.

Alternatively, you can choose to speak with one of our specialists over the phone, who can guide you through the process and help you choose the best policy. 

Get a quote now...

Click here to get a quote online

Alternatively, if you'd rather speak to us please call:

03456 44 25 40(Monday to Friday, 9am to 5.30pm)

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