Joint life policies Verse 2 Single Life Insurances Policies

Many in the UK life insurance industry believe that too many couples are opting for joint life assurance or insurance when they would be better off taking out two single-life policies. Indeed, independent company Lifesearch has gone so far as to suggest that many IFAs could be in breach of TCF (Treating Customers Fairly) guidelines by recommending poor value joint life policies ahead of their generally better value single life policies.

Although two single life plans will typically cost the same, or slightly higher than a joint life plan, the benefits significantly outweigh the extra cost. For example, with a joint-life policy in the case where an insured person dies, the policy ceases leaving the other person uninsured. This may occur later in life where getting reasonably priced insurance for the surviving party may prove very difficult or nigh on impossible, especially if they are in ill-health.

In addition, single life policies can be tailored to each life and the circumstances of the insured, whereas joint life plans have to be the same for both insured parties, and any payout made if both parties had single life cover would be double that in a joint-life claim.