Joint Cover Life Insurance – How it Works
What is Joint Cover Life Insurance?
When two people, usually a domestic couple in a civil marriage, cohabiting or married – take out one policy, this is Joint Cover. It’s commonly taken out with Mortgage Protection Life Insurance though it can be chosen as a feature on any standard Life Insurance policy.
Should I choose a Joint Cover Life Insurance Policy?
Most mortgage providers usually require a mortgage protection policy. If you have a mortgage and live with your partner you’ll most likely have or be looking for a joint policy. This means that it applies to the both of you and will pay out if either of you passes away, to cover the outstanding mortgage. This way you or your partner won’t struggle with the repayments of the mortgage without the other due to the payout from the joint cover. You can also have a joint policy for Level Term Life Insurance though it is common to take out individual life insurance policies.
The benefits of Joint Life Insurance Cover
Rather than taking out individual policies which mean two individual premiums, you are both covered under the one policy. This usually means that the policy will work out cheaper than two single policies, however the policy ceases when one of you passes away. So you would need to re-insure yourself for cover if for example you had a level term cover instead of a decreasing term cover to cover a mortgage.
Things to Consider with a Joint Life Insurance policy
Most commonly people will pick a joint policy over two single life insurance policies especially in regards to mortgage cover. The important thing to remember however is that when the policy is paid out in the event that one of the policy holders is deceased, the joint cover will cease after the payout. So if you or your partner die, there is no further protection after the lump sum payout, if you want to be covered again, you’ll need to get a new policy in place.
Once the cover ends and you are interested in a new policy, you’ll have to be reassessed, which means taking into account your age, health and so on – so if you are older and are in poorer health then it may be difficult to get as favourable a policy the second time round. Because when you are younger and healthier naturally the policies are cheaper. So even if you would prefer a cheaper joint cover policy initially, it is worth considering the implications of this longer term.
Two policies may be more expensive, they may actually end up being more cost effective long term as both policy holders are covered individually and the policy doesn’t cease in the event of one party passing away.
Note that generally decreasing and level term protection plans do not have a cash-in value and cover ceases at the end of the agreed term, or if you do not maintain your premium payments.
Factors affecting the cost of a Joint Cover Life Insurance Policy
Health and lifestyle will influence your premiums per month and how much cover an insurer is willing to provide to you. Smoking, your height and weight, BMI, and any history of illness, your occupation and lifestyle factors like these will determine the cover and premiums. Some jobs are riskier than others and so an office clerk will be considered less risky than a construction worker for example.
Would you like Joint Cover Life Insurance?
We’re here to help with this. Use the quote comparison service on our site to find a Joint Policy that is right for you. Then our diligent insurance brokers will give you a ring to discuss your options, and get you set up and covered same day (in most instances) to give you quick and easy peace of mind.
Alternatively, you can call us directly. We will provide you all the facts to any of the questions you have, go through the quotes with you, and get you the best insurance cover for your budget.