When people get married, something that is commonly on the top of their priority list is life insurance. As a matter of fact, as you get older and start to move out from under your parents’ wings, life insurance already becomes something to consider. But once entering a relationship and getting married, one needs to consider what type of life insurance to get. Joint life insurance or single life insurance?
Both come with their own pros and cons but firstly, what is the difference between the two? Single life insurance is taken out in one name only and the insurance policy pays out when that person dies within the term of the policy. Joint Life Insurance however, is taken out to cover two lives and will pay out in the event of the first death and the policy ceases thereafter. Therefore the remaining partner will not be covered. Some contracts are made to only pay out when the last person on the insurance policy dies but that type of policy is not particularly common.
There are a few things that need to be discussed and considered when trying to decide whether or not to take out a joint life insurance policy once married. What is your budget like? What kind of cover do you want and/or need? What will happen with the relationship in the future (which is not exactly something anyone can predict)?
Most people would agree that joint life insurance is not necessarily the best option just because you're married. Having joint life insurance is like only having one life insurance policy because there will only be one pay out and the second life will not be covered. In most cases joint life insurance is not really much more affordable than single life insurance so you wont necessarily be doing a lot of cutting down on cost.
It is best to speak to an independent financial advisor before taking out any insurance policy but joint life insurance seems to be less advantageous than single life insurance especially since it only covers one death. It is definitely something that you need to discuss with your spouse first.