Two single life policies advantages over Joint Life Insurance

Once you have decided that you need life insurance, the majority of people are not aware that in some cases it can be more beneficial for you to take out two single life plans rather than the joint life first death plan. The only other way to arrange cover for a couple and the main basis for this article is to arrange two plans one for each of you on a single life basis. This then results in, when one person dies the plan which is their pays out the sum assured. That said the surviving person still has their own life insurance running, because their plan is completely unaffected by the passing of their partner and their respective plan paying out.

Two single life insurance plans can also be of benefit over a joint life first death in the event that the relationship breaks down. It should be noted on this point that 4 in ten marriages do end in divorce and furthermore a higher figure than that of ordinary relationships do end in permanent separation. You do need to be aware that when this sort of thing happens assets and belongings need to be divided and split equally accordingly. Most if not all life insurance plans do not separate at all and as such need canceling and rewriting which can be an issue again if you are older and have had health issues. Two single life plans on the other hand do not need separating as they are by definition already two independent plans so can be taken away by their respective owners.

A lot of people assume that taking out two plans rather one joint is a lot more expensive and therefore unaffordable. This is far from the truth arranging two separate plans over one joint one can invariably only cost about 10% more on the overall premium. When you factor in the increase benefits already stated above an extra 10% is a small price to pay.