A joint life insurance policy is an alternative to couples each taking out a policy of their own.

Joint life insurance covers two people in the same policy, whereas single life insurance only covers one individual. Joint policies are generally most suitable for long-term couples, both married and unmarried, but they are also commonly used by business partners too. Generally speaking, when one of the two people covered by a joint life insurance policy dies, the policy comes to an end and the surviving person receives a final payout from the policy. In the vast majority of cases, tax insurance payouts are tax-free, which means there is one less thing for you to worry about should the worst happen.

Life insurance is there to ensure that any dependants you may have do not suffer any financial difficulties should you die. Traditionally, it was the main breadwinner who would take out a life insurance policy to protect their partner and children. Today, of course, many families have two breadwinners, and that is why the joint life insurance policy is growing in popularity. There’s also the fact that the loss of a stay-at-home parent could mean an increase in family expenses to consider too. Should one partner die, the other will be solely responsible for all aspects of family life including childcare costs, and this could cause financial difficulties.

If you have a first death joint life insurance policy, should you pass away, your partner will receive a payout to help them deal with the financial side of life and the policy will then be terminated. If, on the other hand, you happen to have a second death policy - which is far less common- a payout will be due when each partner covered by the joint life insurance policy passes away. This is providing, of course, that all premiums have been paid.