A single life insurance policy covers one person and pays out on their death. It offers clear underwriting, flexible cover, and benefits tailored to that person's financial obligations.

This can be suitable when a couple have unequal incomes, individual debts, or require cover beyond the life of their partner e.g. business commitments or dependent support needs.

In contrast, joint life insurance policies are typically "first death" plans. They cover two lives under one contract, paying out once on the first death of a policyholder.

While often cheaper and simpler to manage, joint policies can limit flexibility in the event of relationship breakdown or if both parties need different levels of cover.

Policy adaptability

Single policies offer greater control. It's easier to alter cover amounts, update beneficiaries, or convert to other product types.

This is useful in scenarios such as second marriages, changes in financial dependency, or differing retirement timelines.

Joint policies are less flexible. They can complicate matters when only one party wishes to make changes or if protection needs diverge.

In the event of separation or divorce, splitting a joint policy can be problematic. It may result in lapses or the need for new underwriting.

Looking to the future

Consider the potential complications from a future claim or policy alteration.

With joint policies, the surviving partner may need to secure new cover later in life. This will often be at higher premiums and with reduced insurability.

Ownership and beneficiary arrangements also require careful consideration. Particularly so in non-married or blended families.

Conclusion

Choosing between single and joint life insurance isn't one size fits all. Understanding your financial structures, long-term goals, and relationship dynamics is essential to determine appropriate protection.

Get in touch with our friendly and knowledgeable team for more information.