Joint term life insurance Vs Two single life insurance policies

If you set up a joint term life policy (one life insurance policy to cover two people) the amount you are insured for is paid out if either of you dies. The life insurance policy usually stops when a claim has been paid. You can’t cash in these life insurance policies.

Joint term life insurance policies are available, but many advisers will typically recommend two single life insurance policies as they usually cost hardly any extra and will provide double cover. This means that if both people die together, both policies pay out, rather than just one joint policy.

Policies that include critical illness cover are almost certainly better split into two separate life insurance plans. For example, if one person is diagnosed with an illness like cancer, their partner will not want their insurance to be lost, which would be the case on a joint term life, first claim policy. Having this double life insurance can provide valuable extra cover to support surviving family members for very little extra cost.