Joint Life Insurance or Multiple Single Insurance Policies – Which is better?

By taking out a joint life insurance policy it would normally be cheaper compared to having 2 single life insurance policies but sometimes only marginally. The big thing to remember with a joint policy is that it would pay out upon the death of either of the policy holders and then the policy would end, whilst having 2 single contracts would mean they would pay out on each life. This is known as double indemnity and for a small increase in monthly premiums you can double the total sum insured.

For example, Mr & Mrs Smith decided to setup a joint policy for £200,000 over 20 years and were paying £25.00 per month the policy would pay out £200,000 upon the death of either of the them during the policy term. Alternatively if they decided to setup 2 individual policies for £200,000 this would give them double the cover and if one of them was to die the other policy would still remain in place, for the remainder of the term. Typically the difference in premium for double indemnity is around 15%. So, in this example the total cost would only be around £29.00 per month.

If your monthly budget is tight and the main purpose of the policy is to protect each other against death then a joint policy is probably the best option. However if it is affordable and you are wanting to provide extra cover for your dependents or grown up children then it may better to look at setting up 2 individual policies.

Speak with us to see how Black & Red Group can help you today.

Please call us on 01392 706233 for more information or Compare Leading Insurers Here.


About the author