Should I get single or joint life insurance?

Single life insurance is cover for one person. The policy is based on someone's age, health, job, and lifestyle, and the specific term and premiums are agreed between the individual and the insurance provider. The policy pays out a lump sum upon that person's death - provided it is within the policy term and that the insurance premiums were continuously paid during the policy term. There is usually no cash-in value at any time with a life insurance policy.

Joint life insurance covers two people on one policy, with one monthly premium. It's worth mentioning that there's no requirement to be married or in a civil partnership in order to share a joint life insurance policy. The policy is based on both individuals' age, health, job and lifestyle, with the policy term and premiums agreed between both parties and the insurance provider. As with the single option, joint life insurance policies only pay out once, with the cover ending after the first death of a policyholder. If you’re insured under a joint policy and the first policyholder dies, you may want to consider taking out a new single life insurance policy if you want to continue having protection cover in place. If you're older than when you took out your joint policy, you could be looking at paying higher premiums.

If you and your partner already have shared finances and a shared financial commitment, like a mortgage, it could be worth considering a joint life insurance policy which can be used to pay off the mortgage when one person dies. Joint policies tend to be more affordable than two single policies, which could be helpful if one of you is more expensive to insure for any reason.

It's an unfortunate scenario no-one wants to think about. If your relationship does come to an end, there are four potential options:-

• You continue the policy together - if the money is for your children, you might prefer to keep it.
• One of you takes control of the joint policy, while the other takes out their own new policy.
• The joint policy is separated into two single policies - only available with some policies.
• The joint policy is cancelled and you both take out new separate policies.

What you choose to do will be based on your own personal circumstances. It's always worth checking this with your insurance provider at the time of taking out the joint policy. With our Life Insurance Plan you may be able to split a joint policy into two new single life policies. This article may be helpful while you're considering your options.

We've explained the benefits of both options in this article. Whether a single or joint policy is right for you will depend on your circumstances and reasons for buying life insurance. It's worth mentioning that it's often quicker and easier to make a claim on a joint policy as the money normally goes straight to the survivor if a successful claim is made. With single policies - unless placed into trust - money is normally paid to the deceased’s estate. There could be inheritance tax due, and the money could take longer to reach your loved ones. However, it's also important to consider that if you and your partner opt for single life insurance policies instead, you’ll both remain covered, whether one of you dies or the relationship breaks down. Considering the level of cover you and your partner each need, your relationship, and the cost of both options will help you decide what’s right for you.