Joint life insurance accounts for 28% of all life policies, according to a Forbes Advisor survey. To help you decide whether a joint policy could work for you and your partner, or whether you would be better off taking out two single policies, it’s worth considering the following:
Taking out a joint life insurance policy often works out cheaper than buying two single policies. So if cost is a major factor and you’re on a tight budget, a joint life insurance policy may be the better option.
The amount of cover you need is also an important consideration. Joint cover can be a good option if you both need the same level of cover for the same length of time – for example, if covering your joint mortgage is the main priority.
However, if one partner earns considerably more than the other or you have dependants who will rely on the money that could be paid out, two single policies might be more suitable. That way you can choose different levels of cover and your dependants could receive two pay outs, potentially leaving them financially better off.
Don’t forget that even if you are a stay-at-home parent, life insurance can still prove valuable – if you were no longer around, your partner might have to give up work to care for the children or pay out for childcare.
Keep in mind that if your relationship breaks down and you have a joint policy, you may have to take out separate cover at a later date which could be more expensive. You may therefore prefer to take out two single life insurance policies.
The following graph shows how people went about choosing their life insurance policy, with the majority either going through a financial professional or taking advice or recommendations from family and friends. A further one in four said they used a price comparison website to find life cover.
Source: Forbes Advisor life insurance survey 2023
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