“What Life Insurance should I get?” is a common question for our advisers. Closely followed by, “Should I have single or joint life insurance?” from our coupled-up clients. As always, with insurance needs, it is a very individual response but, in this article, we aim to give a general overview.
When considering whether you need a single or joint Life Insurance policy, it’s important to look at the different levels of cover that you each will need. If you both need the same level of cover for the same amount of time, eg: to cover a joint mortgage where a cash sum only needs to be paid once, then a joint policy could be the right option.
If, however, you would prefer the cash sum paid twice during the length of the policy, should you both die, single life cover may be the better option for you. Or indeed, if there are differences in the level of cover needed.
Budget is also something to consider when deciding whether you need a single or joint policy. A joint policy can be less expensive than 2 single policies, as it is designed to provide the same amount of cover over the same period of time. However, because a joint policy only pays out once and usually upon the first death, it leaves the surviving policy holder without cover under that policy, whereas with two single policies each partner has individual cover.
Another consideration is that your needs may change in the future. At every remortgage point, your adviser will discuss your protection needs to ensure that the cover that you have is the most appropriate cover for your current circumstances.
To discuss your Life Insurance needs, contact our team to book an appointment, or mention it on your next call with your adviser.