Joint Life Insurance Cover
Learn about Joint Life Insurance Cover and how it works
What is Joint Life Insurance Cover?
‘Joint Cover’ describes one policy which is taken out in the names of two people, usually a married, civilly married or cohabiting couple. Joint Cover Life Insurance can be chosen as a feature on any standard Life Insurance policy (excluding ‘Over 50s’ plans), but is commonly taken out with Decreasing Term Life Insurance.
Why should I choose a Joint Life Insurance Policy?
If you have a mortgage and live with your partner, a Decreasing Term (or Mortgage Protection) policy is usually what’s required by your mortgage provider. This policy will most likely be a Joint policy, meaning that it applies to both of you and will pay-out when one of you passes away. This will make sure you or your partner aren’t left struggling to cover mortgage repayments, as the joint mortgage protection policy pay-out will take care of it.
You can also request a Joint policy for Level Term Life Insurance.
What are the benefits of Joint Life Insurance Cover?
Both you and your partner are covered under one policy, which usually means a Joint policy works out cheaper than two single policies. No matter which of you passes away, your home is protected.
Are there any considerations with a Joint Life Insurance policy?
Many people will opt for a Joint policy rather than two Single policies; however once the Joint policy has paid out, it won’t pay out again when the second policy holder dies, as the Joint cover will cease on the initial payout. This means that when you or your partner pass away, the other is then not protected and if they want a lump sum to be available after their death, they would need another policy in place to cover this.
After this policy has been claimed, the cover ends, at which point getting a Single policy for the remaining partner could prove more difficult because they are older and may be in poorer health. Because of this, while it is cheaper to opt for a Joint cover policy, it’s worth considering whether two Single policies would be more suitable for your needs.
Whilst it’s more expensive to have two Single policies, this may work out more cost-effective in the long-run, as both parties are covered under separate policies.
Typically, protection plans have no cash-in value and cover will cease at the end of the term, or if premiums are not maintained.
At Protect Line we offer a free Trust arrangement service so that your loved ones will be able to access the total insurance amount as soon as it’s made available and could mean they avoid a hefty inheritance tax.
What affects the cost of a Joint Life Insurance Policy?
As with all Life Insurance policies, your health and lifestyle will influence your monthly premiums and how much an insurer is willing to cover you for. Factors like smoking, height and weight, a history of illnesses and more will contribute towards how big a risk you are to an insurer. Another factor that’s often not thought about by people applying for Life Insurance is how your occupation can affect your cover – if you’re someone who works at great heights every day, you’re going to be deemed ‘riskier’ than someone who has an office job.
You can find out more information by visiting our High-Risk Factors page.
How do I get a Joint Life Insurance Policy?
Taking out a joint Life Insurance policy with Protect Line couldn’t be simpler. You can call us directly at 0333 880 3030. We’re a non-advisory service, so whilst we can’t offer you any advice, we can answer your questions with facts, not our opinions.
Taxation and Trust planning are not regulated by the Financial Conduct Authority.
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