It remains one of those age-old dilemmas facing every new couple at the beginning of what they hope will be a long and prosperous relationship. No, not what they’ll name their future children or whether or not they’ll have to accommodate an ageing mother or father-in-law at some point, but rather should they arrange joint or single Life Insurance policies.
Forget about heated discussions about what colour to paint the lounge once you move in together, as one of the most important questions which needs answering before you go any further is what type of Life Insurance policy will work best for the both of you. Do you opt to pool your resources and commit to the one, single (but conversely, joint) entity, or do you instead look into individual policies and go it alone.
What you could really do with that this stage is someone who’s got all the answers and are well placed to afford you expert guidance on the subject. It’s a good job that Quick Quote Life is on hand to give you a crash course in the finer details of both joint and single Life Insurance plans. We are here to help you determine the best options available to you here and now.
There’s a number of pros and cons to be made aware of, but even before we delve headlong into exploring these issues, we need to remind ourselves of the fundamental differences between joint and single Life Insurance packages before we get into the ‘who said what’ arguments.
While at first glance the more obvious choice might be to opt for a joint plan, let’s just say there are stipulations involved in this type of Life Insurance which could stop a lot of couples in their tracks.
One of the prime examples being the ‘first death’ clause, which needs explaining fully.
Not to dwell on the negative connotations of such matters, this means in Life Insurance parlance as the policy would only pay-out when the first person in the couple sadly passes away. Thereafter, the policy would cease to have any worth to the co-policyholder and/or any dependents. For this underlying reason alone, single Life Insurance may be a more attractive proposition as at least this way there would be two guaranteed settlements, following the demise of both parties.
To conjure up an even more useful mental image in the heads of couple currently running the rule over the two Life Insurance options, albeit a hypothetically more graphic one (sorry, but a purposeful dramatization), what if the couple both tragically lost their lives as a result of an unforeseen/unavoidable accident of one form or another.
Should they have taken out two single Life Insurance policies before meeting their fate, any beneficiaries would stand to pocket two separate financial compensations for their substantial losses. On the other hand, in the event of the aforementioned couple had previously signed on the dotted line re a joint Life Insurance agreement, then just the one payment would materialise, despite the double blow.
Further adding to the difficulties (from a financial perspective) potentially experienced by the surviving member of the couple thereafter, would be concerned over any future insurance policies. Say for instance the surviving partner had no insurance cover in the wake of their spouse’s demise, not only would they struggle to cope emotionally, but they might find it difficult to purchase life policies at affordable due to premiums increasing with age.
There are alternative situations to take on board, which may make the idea of a joint life policy more appealing from the get-go. Like for instance one of the benefits would be that should both co-insured parties have the same insurance needs, then the policy could be drafted in a way which would see both individuals offered the same umbrella coverage.
Another aspect worth considering is that surrounding costs. It’s hardly surprising to learn that two separate Life Insurance plans would end up costing more than the one joint version. However, if money isn’t the be all and end all in the thought process – and moreover, should one party require a different level of cover than the other – then single policies can be shaped to an individual’s exacting requirements by the provider, the trained advisors at Quick Quote Life can provide you with a free no obligation quotation.
Another very important factor not to rule out when deciding what type of Life Insurance plan to run with in terms of a couple, it is worth bearing in mind what might happen if the relationship breaks down. It’s not beyond the realms of possibility (in reality, highly likely, truth be told) that the provider of a joint Life Insurance policy couldn’t divide the existing agreement into two separate policies, which could easily complicate matters.
The most obvious fall-out being either both parties will continue paying the pre-determined premiums or one person opts to continue the payments independently. And should the payments be unpaid from that point onwards, then the policy will cease to exist and no further cover will be in place.
So there you have it. Not wholly conclusive, as it would be impossible to deduct from all the information available on the subject of joint Life Insurance versus single Life Insurance which is, definitively the best avenue to venture down. But hopefully, we’ve equipped you with enough of the basic information to help you reach a decision. And it goes without saying when you feel confident enough to proceed – with either joint or single life policies (or simply wish to discuss further options)
Speak to our trained advisors at Quick Quote Life; who are here to help you with the important insurance questions and objectively find a Life Insurance policy which best suits your (individual OR collective) needs.