If you are building a life with your partner, getting a house together, having children, you may have already considered getting a life insurance policy to protect your finances.
But should you opt for two single policies, or should you go for a joint policy in both of your names?
This guide will outline some of the things you may want to consider if you are wondering whether a joint policy or two single ones would suit you best.
A joint life insurance policy covers two people (spouses or those in a civil partner or long-term relationship). They are designed for people who share joint assets, such as a mortgage or children and they are looking to protect themselves in case one person in the couple dies.
However, joint life insurance policies are not exclusively for those with a mortgage and kids. You may seek a joint policy if you share loans or other large debts and you live in rented accommodation. Further, you may be looking for a method to save for your funeral expenses or to protect your inheritance for the beneficiaries of your will.
Please note: It is also possible for business partners to take out a life insurance policy together.
Life insurance, as a single policy, covers one person’s assets in event of their death. These would be sought for the same reasons as above. However, a single policy will take just the holder’s income, health, and family history etc. into account. The funds released from a payout would go to the surviving partner, or will beneficiaries.
Craig and Felicity are a couple who have very different jobs and hobbies. Craig enjoys mountaineering and works as an engineer. Felicity, on the other hand, is a teacher and enjoys baking.
Craig’s sudden passing would leave a greater shortfall in the family expenses. But, his premiums payments will be much higher, because of his dangerous hobby.
Felicity does the bulk of the childcare duties and her salary is much less than Craig’s. So much so, she is unable to contribute to Craig’s life insurance premiums. Therefore, the couple sought two single life insurance policies, to offer their children the maximum protection in the event of either of their deaths.
Lorraine and Geoff sought a joint life insurance policy worth £350,000. After five years, Lorraine sadly passed away and the payout was made to Geoff. However, after three years, Geoff became terminally ill and did not make provisions for a single life insurance policy for himself.
Lorraine and Geoff’s children, therefore, will receive no further funds with Geoff’s eventual passing. However, the mortgage on the couple’s house was taken care of and Geoff has left the remaining life insurance funds to his children, in his will.
If you would like to find out more about single or joint life insurance, get in touch for a free, no-obligation quote.
I needed life insurance and critical illness for myself and my wife. I got a number of quotes from some of the big brands and was very happy with the final price. Mike Davidson, Birmingham
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* Life insurance from 20p per day is an illustrative figure only and may not be available to you. The figure is based off of a 25 year old non smoking female taking out £150,000 of term assurance over 25 years on a level term basis and available from Beagle Street. Figure accurate as of 19/03/2015.
* Life insurance & Critical Illness from 35p per day is an illustrative figure only and may not be available to you. The figure is based off of a 25 year old non smoking female taking out £150,000 of term assurance over 25 years on a level term basis along with £50,000 of critical illness cover and is available from Beagle Street. Figure accurate as of 19/08/2015.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
IF YOU ARE THINKING OF CONSOLIDATION EXISTING BORROWING YOU SHOULD BE AWARE THAT YOU MAY BE EXTENDING THE TERMS OF THE DEBT AND INCREASING THE TOTAL AMOUNT YOU REPAY.
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