What is the best life insurance for couples?

‘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. In 2023, about 65% of UK families were married couples, and 18% were cohabiting couples[1], which 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.

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 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 joint life insurance 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.

How does it work?

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.

Whereas 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.

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 often 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.

Types of joint life insurance

Several types of life cover can be purchased as a joint policy including:

• 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.
   

• Level term life insurance - which covers you for a set amount of time (usually between 5-50 years). The policy only pays out if you die within the agreed term. Premiums are usually cheaper than for whole as there is no guarantee a payout will be made.
   

• Decreasing term life insurance - lasts for a set time like level term but is used to cover a mortgage or other large debts. The payout decreases over time as you pay off your mortgage. If you die before it's repaid, your family can use the payout to pay off the remaining balance. This type of cover is also known as 'mortgage life insurance'. Premiums are usually cheaper than for whole life cover and level term cover as the claim amount gets smaller over time.

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

Joint or individual life insurance - which is better?

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.

Some couples choose joint cover 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, joint policies have a major drawback: they usually pay out only once — on the first partner’s death. So, if one person dies during the policy term, the policy will end (if the policy is taken out on a 'joint life first death' basis). After that, the surviving partner is left without cover, which could be more expensive to buy later.

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.

Ultimately, buying two single life insurance plans offers you additional flexibility that joint life insurance can’t.

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

01392 436193

(Monday to Thursday 9am – 5.30pm, Friday 9am – 5pm)

Is joint life insurance cheaper than single​?

Joint life insurance is typically cheaper than buying separate policies. However, there is less flexibility when it comes to owning joint cover.

You also need to think about potential costs for the future. If one were to die, the other may still wish to have cover. The cost of taking out a new life insurance plan generally increases with age, so for the surviving partner, taking out a new policy at a later date will likely be more expensive.

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.

Do I need joint life insurance if I'm not married?

You don't have to be a married couple to take out joint life insurance. Unmarried couples, like long-term partners, can get cover. The policy covers two people regardless of whether they're married or not. It can even be used by family members, business partners or any other party that shares some sort of financial responsibility.

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:

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.

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.