What is joint life insurance?
Joint life insurance is designed to cover two people under one policy, so that both partners are insured together. A joint life insurance policy will generally cover two lives on a ‘first death’ basis. This means that the insurer will pay out upon the death of the first person to help their partner remain financially secure. Once the money has been paid out, the joint life insurance policy will end.
It is easy to compare joint life insurance quotes online with ActiveQuote to find the right policy at the right price- our comparison engine will search the market so you can get the best joint life insurance to fit your needs and your budget.
Who can be covered?
Joint life assurance is usually taken out by couples, but joint life insurance policies can cover any pair of people as long as they have a shared financial interest. For example, joint life cover is often bought by:
- Married couples
- Civil partners
- Room mates
- Live-in partners
Examples of a shared financial interest include a mortgage or dependent children. If one insured person chooses to stop paying the premiums, the joint life insurance policy will end and premiums will not be refunded.
How much joint life cover do we need?
Choosing the right level of cover is an important part of buying joint life insurance, because the more money you want paid out the more expensive the plan is likely to be. Consider the total cost of your mortgage, personal loan and credit card debt, as well as the cost of any living expenses like school fees or money for a funeral. If in doubt of how much joint life cover you need, speak to one of our FCA authorised specialists to discuss your options.
What types of joint life insurance policies are there?
When you compare joint life cover, you will find that there are two main types of plan: level-term joint life insurance and decreasing-term plans.
Level-term joint life insurance policies
Level-term joint life cover will protect you and your partner until a specific date in the future, or for a set number of years. If one of you dies within this time period, your joint life insurance policy will pay out a lump sum of money to the person left behind. If neither of you die within the time period, the joint life cover will not pay out and you will not receive any money back again. With a level-term policy, the amount of money paid out remains the same throughout.
Decreasing-term joint life assurance quotes
Decreasing-term life insurance will also cover you and your partner until a specific date, and if one of you dies in this period of time the policy will pay out. But unlike level-term cover, the amount of money paid out decreases over time, usually in line with a repayment mortgage.
Critical illness cover
When investing in a joint life insurance quotes, you will be able to add critical illness insurance to the policy. This way, your insurer will pay out either on the first death or on diagnosis of a critical illness. For more information, take a look at our guide on critical illness cover.
Single vs. joint life insurance policies
The alternative to a joint life insurance policy is buying two single life insurance policies to cover both people individually. There are advantages and disadvantages to both options:
Joint life cover
- Joint life insurance policies are often cheaper than two single plans
- Joint life cover is ideal for couples who want cover just to pay off their mortgage
- But once the policy has paid out, the remaining person will be left without cover
Single life insurance
- If you are your partner have different financial needs, two separate policies could be better for you
- Whilst two policies can be more expensive, you are guaranteed two pay-outs instead of just one
- Two single policies are easier to separate in the case of a break-up or divorce
ActiveQuote offers both single life insurance and joint life insurance quotes, to help you decide which suits you best.
Compare joint life insurance quotes
If you are looking to compare joint life insurance quotes, ActiveQuote can help. There are a number of benefits to using our comparison system, including:
- Quotes from best joint life insurance companies
- Compare joint life insurance quotes online
- Buy a policy for instant cover
ActiveQuote is also an FCA registered broker, so one of our life insurance specialists will always be on hand to explain the joint life insurance policies in more detail.