Should the cover be on joint lives or single lives?
This largely depends on your circumstances and your requirements.
If you are only considering insuring one life then it is
clear that you need single life cover.
If you are insuring two lives you have the option of having
two separate single life policies or one joint life policy. It will invariably
be cheaper to have one joint policy. However, you should be aware that
joint policies are usually written on first life. This means that if either
one of the policyholder’s dies during the time that the policy is
in force, the policy will pay out. Once this has happened the policy is
finished. It will not pay out again. This means that the partner who is
left alive no longer has life insurance. Getting new life insurance at
this point may well be expensive, so it is worth considering now whether
you actually want joint cover or two separate policies.
If you are using the insurance for mortgage protection and
your mortgage is held jointly, your Life Insurance should be in joint
lives. This applies whether it is Life Insurance (for an Interest Only
Mortgage) or Mortgage Life Insurance (for a Repayment Mortgage).
Other relevant questions…
What’s the difference between joint cover and single
cover?
Is Life Insurance for me?
What else do I need to know about Life Insurance?
How do I get a Life Insurance Quote?
How do I choose the right policy for me?
What if I need cover to be arranged quickly?
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How are premiums calculated?
What if I have to make a claim?
Do I need Mortgage Life Insurance instead?
Should I consider Critical Illness cover?
What other sorts of Insurance should I think about?
How do I make a complaint?
What do I need to know about the law and Life Insurance?
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