It is a life insurance policy that covers two people rather than one. You choose how long the policy lasts, but it only pays out once during the term.

How does joint life insurance work?

A joint life insurance policy can either pay out when the first person dies, or the second, but not for both.

If you need a life insurance policy that pays out for both deaths, you need to apply for individual life insurance policies.

Are joint life insurance policies worth it?

Joint life insurance could save you money compared to buying two separate policies, but you will only get one payout.

If you can get a life insurance policy each, for less than a joint life insurance policy, you will get two payouts and save money.

Get quotes for the joint payout you want, then compare the cost of the cheapest policy to the cost of getting two individual policies.

What types of joint cover can you get?

Here are the types of life insurance you can get joint cover with:

  • Whole of life: The most expensive type of life insurance policy, but will pay out whenever the first person dies.

  • Level term: This offers a fixed payout, but you can only claim if you die during the term of the policy.

  • Decreasing term: This is usually the cheapest type of life insurance policy, as the payout you choose reduces each month until the end of the term. This is commonly used alongside mortgages.

Choosing the right payout

Depending on the insurer, you may have two options on when your payout is claimed:

  • First death: This pays out when the first person dies during the term of the policy only.

  • Second death: This only pays out if both policyholders die during the policy's term. This type is usually cheaper than first death as the chance of claiming is lower.

If you choose to get two individual policies, when one person passes away the other receives a payout but still has their own cover in place too.