Single or joint life insurance – which is better?
Choosing between single and joint life insurance is an important decision that depends on your unique circumstances. At Ascot Mortgages, we can offer expert advice on the best option for your situation so you can make an informed decision.
Speak to Protection Advisor
or
Why Choose Ascot Mortgages
What is Single Life Insurance?
As the name suggests, a single life insurance policy insures one person so that if they die during the policy term, a lump sum is paid out to their designated beneficiaries. The policyholder will decide on the length of the policy, the amount and who receives the payout.
Many couples opt for two single life insurance policies, meaning that if one of them dies, the other still has their policy in place. It also means that if one person wants to increase or change their coverage over time, they have the freedom to do so without affecting the other.
What is Single Life Insurance?
As the name suggests, a single life insurance policy insures one person so that if they die during the policy term, a lump sum is paid out to their designated beneficiaries. The policyholder will decide on the length of the policy, the amount and who receives the payout.
Many couples opt for two single life insurance policies, meaning that if one of them dies, the other still has their policy in place. It also means that if one person wants to increase or change their coverage over time, they have the freedom to do so without affecting the other.
What is Joint Life Insurance?
A joint life insurance policy insures two people under one contract so if one person dies, the other policyholder receives the payout. As it’s a joint policy, it involves one application and one monthly payment rather than one per person.
It’s important to note that a joint policy only pays out a lump sum once. Most joint policies pay out upon the first death, leaving the surviving partner with no cover in place. There are also second death joint policies which pay beneficiaries once both people on the policy have passed away.
The Similarities Between Single and Joint Life Insurance
Although single and joint life insurance policies work differently, they do have some similarities. For example, they both:
- aim to provide financial support to loved ones, helping to cover expenses like mortgages, funeral costs, or other debts
- can be taken out as either term insurance (covering a specific period) or whole-of-life insurance (lasting until death)
- can include add-ons like critical illness cover or income protection, though this will increase the premium.
Single vs Joint Life Insurance: Pros and Cons
When deciding between single or joint life insurance, it’s important to consider the pros and cons of both, so you can decide whether one joint policy or two single policies is best for you and your partner.
Single Life Insurance Pros
- There is more flexibility if circumstances change, for example if you divorce or separate.
- You can tailor the type and amount of cover to your individual need.
- Two individual policies mean there are two payouts.
- The payout doesn’t go to your partner automatically, so you have the freedom to choose who your beneficiaries are.
Single Life Insurance Cons
- It is usually more expensive to have two policies rather than one joint one.
- You’ll need to make two separate applications.
- Your policies will be managed separately and two individual premium payments will need to be made each month.
Joint Life Insurance Pros
- It’s usually cheaper than two single policies.
- You only have one policy to manage, which is ideal for couples sharing finances.
- You and your partner only have to complete one application form.
- You don’t have to be married or in a relationship to take out a joint policy.
Joint Life Insurance Cons
- There is only one payout and the policy ends once this is complete.
- If you split up, the policy may be difficult to separate.
- You both have to have cover for the same amount and length of time.
- You can’t choose who your beneficiaries are as the lump sum is automatically paid to the other policyholder.
Joint Life Insurance for Unmarried Couples or Friends
Joint life insurance covers two lives but the policyholders don’t have to be married or even in a relationship. If the other person on the policy, regardless of their relationship to you, would suffer a financial loss if you passed away, it’s possible to get joint life insurance. It’s often a good option for those with shared financial responsibility, such as a joint mortgage. The key is to assess whether a shared policy makes financial sense for your specific situation.
Factors to Consider with Joint Life Insurance
It can be difficult to decide whether joint or single life insurance would be the best option for you and your partner. You’ll need to start by assessing your current circumstances and any changes that might happen in the future. Below are a number of factors to take into account when making your decision:
Whether You Have Any Dependents
When you take out a joint policy, only the other policyholder will receive the payout if you pass away. Therefore, if you have no other dependents, it can be a great option that simplifies matters. However, if you do have other dependents, such as family to support, two single policies may suit you better. As a joint policy ends once one person dies, you would need to take out a separate policy if you wanted to support any children or relatives financially.
The Cost of Joint Life Insurance
The cost of premiums is often an important factor when deciding on a life insurance policy. As mentioned above, single policies tend to be pricier as they provide more coverage, flexibility and two potential payouts. Joint policies are generally more affordable but may be less effective if both partners need substantial cover. It can be helpful to decide a budget and get quotes for both single and joint policies so you can find the most affordable and appropriate option for your needs.
Flexibility for the Future
Generally speaking, two single life insurance policies offer more flexibility as, if your circumstances were to change and you were to separate, you’re not linked with a life insurance policy. It also allows you to decide on a different amount or policy term length than your partner, which can be especially useful if your financial situations, health or long-term goals differ.
With separate policies, each person can adapt their cover as life changes – whether that’s buying a new home, having children or adjusting to a new income level.
Your Financial Obligations
The right policy for you may also depend on what your financial obligations are. For example, if you have a joint mortgage, a joint policy can ensure the surviving partner isn’t left struggling to cover the repayments alone. This can work especially well if you’re on similar incomes and can afford to pay the same in premiums. However, if one partner carries most of the financial responsibility, separate policies might better protect each person’s contributions and provide more tailored support.
What Happens to Life Insurance After Divorce?
If you have a joint policy with someone else and you divorce or separate, you’ll need to contact your insurer to understand your options. In some cases, the policy can be split so neither policyholder has to go through underwriting but this depends on the provider. If your policy doesn’t offer this, there are a few options available:
Continue with the policy
In some cases, it may make sense to continue with the policy, for example if there are shared financial obligations, like children or a mortgage. Although, it’s important to note that it will be the other policyholder rather than any other dependents that receive your payout if you pass away.
Transfer the policy
It may be possible to transfer the policy to just one person. However, this may be hard to negotiate as they will need to keep paying the amount you were both paying before. For this to happen, you will both complete and sign a legal document which is then registered by your insurer.
Cancel the policy
You may opt to cancel, meaning neither of you are covered anymore. This is probably the simplest option but there are downsides. You will likely lose the money you paid into the policy and as life insurance policies increase in cost as you age, you’ll likely have to pay more for a new single policy.
Is It Possible to Get Over 50s Joint Life Insurance?
Yes, although it can be more difficult to find joint life insurance for over 50s, it’s not impossible. For example, you may be able to take out decreasing life insurance which can be helpful if you’re hoping to cover mortgage repayments. Decreasing life insurance typically reduces at roughly the same rate a mortgage does, meaning that if you die five years into the policy, your partner would receive more than if you died 10 years into the policy.
There are also life insurance policies specifically for over 50s, such as over 50s fixed life insurance, but this tends to be a single rather than joint policy. This is a whole-of-life policy and can be a good way to financially support your loved ones and contribute to funeral costs once you pass.
Get in Touch Today
Ultimately, your choice should reflect your financial needs and future plans. Here at Ascot Mortgages, we can help you compare different options, offering expert guidance on the best choice for your circumstances. Contact us today to find out more.
What Our Clients Say About Us
Written by:
Richard Johnson
Ascot Protection Expert
Last Updated:
20.06.2025
Written by:
Richard Johnson
Ascot Protection Expert
Last Updated:
20.06.2025
Apply for a Protection
Get things moving, apply for a protection.
Call Now - 01925 711558
Free unbiased protection advice is just a phone call away
Meet Our Team
