Taking out a single or joint life insurance policy?

Good to know – life insurance is provided by Legal & General

If you’re a couple taking out life insurance, you might ask whether you should take it on a single or joint life basis.

What’s the difference?

A ‘single’ life insurance policy covers one person, and pays out the cash sum if that person dies during the policy term.

A ‘joint’ life insurance policy covers two people on a ‘first death’ basis, so the cash sum pays out if one of the people dies during the policy term, and then the plan ends.

Remember, with two single life policies there’s a potential for two payouts. A joint life policy only pays out once and would leave the surviving person without any life insurance.

There are pros and cons to both single and joint life insurance policies. Here are some factors to consider:

Budget ‐ one joint life policy could be cheaper than two single life policies (depending on personal circumstances).

Cover ‐ do you both have exactly the same life insurance needs? Does one of you need to have more cover than the other?

The future

If a relationship breaks down, you may not want to still hold a joint policy. It is possible with Legal & General to change a joint policy into two single policies. Bear in mind this could affect the premium you pay.

If you claimed on a joint policy, the second person would be left without life insurance. Reapplying later in life can be more expensive as premiums increase with age, and changes in your medical history could make it more difficult and costly to get cover.

So, when you make the decision between single and joint life insurance make sure you’ve considered all of the options and choose the cover that suits you best.

Good to know

Direct Line’s Life Insurance is provided by Legal and General