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What is joint life insurance and how does it work?

Written by Ines Pena

Joint life insurance can be a great way to make sure your family is protected if something happens to you or your partner.

But how does it compare to single life insurance, and how can you decide which one is right for you?

Joint life insurance is an alternative to getting separate single life insurance policies. A joint life insurance policy covers both people on the same policy but will only pay out once. Because of this, it can be cheaper than having two single policies.

At Beagle Street we offer both joint and single life insurance policies.

How does joint life insurance work?

A joint life insurance policy covers two people under one policy. The policy will only pay out once, when the first person passes away within the policy term. Once a claim is paid, the policy will end.

How do you apply for joint life insurance?

When you apply for a joint life insurance policy, you’ll only need to complete one application for both people on the policy. The process will cover questions about both of you, and you’ll both need to complete your own personal details.

The first applicant named in the application will automatically act as the lead policyholder, so it’s important to discuss this with your partner before you apply.

Can I add critical illness cover to a joint life insurance policy?

Yes. However, just like your joint life insurance payout, critical illness cover on a joint life insurance policy will only cover the first claim of critical illness.

If you add critical illness, you can also include children’s critical illness cover with your joint policy. By adding critical illness or children’s critical illness you will get more cover for you or your family, which will also increase how much you pay each month.

Should I get single or joint life insurance?

Here are the main differences to keep in mind when choosing between single and joint life insurance for you and your partner.

Two single life insurance policiesJoint life insurance policy
Who does it cover?Two people under individual life insurance policies.Two people under the same policy.
How does it pay out?Up to a maximum of twice, when either policyholder dies or is diagnosed with a terminal illness within the policy term. Both policies have their own individual payouts.Up to a maximum of once, when the first of both policyholders dies or is diagnosed with a terminal illness within the policy term.
Who gets the payout?If it’s placed in a trust, the payout goes to the chosen beneficiary. Otherwise, it becomes part of your estate.The payout automatically passes to the living policyholder.
How much does it cost?Typically more expensive, as it pays out a maximum of twice (once per policy).Typically cheaper, as it only pays out a maximum of once.
Can it be placed in trust?Yes.At this moment, we only offer the ability to write a single life policy in trust.

When choosing between getting single or joint life insurance, it’s important to decide whether you need one or two payouts.

If you only need one payout, for example to pay for a mortgage or shared debt, then a joint life insurance policy could be a good fit for you and your family. If you think you’ll need two separate payouts, which is more common if you have a child or dependents, then it might be best to have separate single life insurance policies.

It’s also worth keeping in mind that a joint life insurance policy can’t be placed in Beagle Street’s free trust.

Lastly, there is a price difference to consider. Since a joint life insurance policy only pays out once for whoever dies first, it’s typically cheaper than having two single life insurance policies.

Why choose Beagle Street for your joint or single life insurance policy?

At Beagle Street, we offer fixed premiums with all of our policies, which means they don’t go up as you get older or if your health changes (unless you request changes to your policy). Those premiums are usually lower if you’re younger, so taking out a policy earlier can mean lower monthly payments throughout the length of the policy.

Want to find out how much you can get covered for? Use our quick quote tool to find out, with no obligation to go ahead with the quote!

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Accidental death benefit acts as short-term cover while you’re waiting for a decision on your life insurance application.

Terminal illness cover pays out if you are likely to have less than 12 months left to live, while critical illness cover pays out if you’re diagnosed as critically ill.

What is critical illness cover?

Critical illness cover can help protect you and your family if you are diagnosed with a serious illness. But how does it work, how much does it cost, and is critical illness cover worth it?

Find out how much life insurance could cost with Beagle Street

Our simple, online quick quote tool will let you know how much cover you can get and how much it’s likely to cost you. There’s no commitment to take out a policy.