Joint life cover or single protection? Here are the pros and cons of each option

13 January 2025

Life cover can serve as a vital safety net, helping you and your loved ones maintain your standard of living after someone passes away.

If you and your spouse are looking to obtain life cover to shield your loved ones from the unexpected, then the two main options available are:

1. Joint cover
2. Individual protection.

Joint life insurance covers two people under a single policy, typically paying out upon the death of one party, with the surviving person receiving a tax-efficient payout.

Meanwhile, single protection covers just one person, meaning you would need two separate agreements to protect both you and your partner.

The decision between joint and single life cover isn’t as straightforward as it might seem on the surface. It’s vital to understand the benefits and downsides of each option so you can make an informed decision that aligns with your needs and financial goals.

Continue reading to discover several advantages and disadvantages of both joint and single protection.

The pros of joint life cover

It could be cheaper than two separate policies

Since you only have one package of insurance that covers both you and your partner, it is generally cheaper than two separate agreements.

For example, Iam INSURED reveals that the average cost of single life cover in the UK in 2024 was £9.71 a month, compared to £16.84 a month for a joint policy.

It’s typically easier to set up and manage

You may find that managing a single joint policy is often more straightforward and convenient, especially if you and your partner have shared finances.

With only one set of paperwork, one monthly premium, and one renewal date to keep track of, a joint policy could streamline the entire administrative process.

The cons of joint life insurance

You can’t usually name a beneficiary other than the joint policy holder

A joint life insurance agreement will typically pay out to the surviving partner named on the cover, which may not always align with your long-term goals.

For instance, if you intended for the payout to help your children or grandchildren deal with an Inheritance Tax (IHT) bill by placing the cover in a trust, this might not always be possible, as the payment must first go to your partner.

Your cover will typically end if you or your partner pass away

Joint policies usually end after the first death payout, meaning that the surviving partner would need to purchase new cover to remain insured.

Depending on the surviving person’s age and the state of their health, taking out new cover could be much more expensive than when you both initially signed up for joint insurance.

Moreover, since a joint policy can only pay out once, this effectively means that it provides less overall coverage than two separate single policies. 

You may not be able to split joint cover into two single policies if you get divorced

While no one plans for a divorce, it’s still wise to consider the possibility so you’re prepared for anything.

If you and your partner do end up separating, you might find it challenging to separate your joint cover into two separate policies.

Indeed, you may need to cancel the joint cover and take out two new separate policies, which could be more expensive if you split up in your 50s or 60s. It can also be stressful and time-consuming having to set it all up again, especially if you’re already dealing with the challenges of divorce.

What’s more, as reported by Money Marketing, joint policies can even add further pressure to cases of financial abuse, in which the victim feels they must remain in the relationship in order to be adequately insured in case the worst happens.

With this in mind, two separate packages of protection could help to ensure both parties remain insured no matter what happens.

The pros of individual life cover

Individual protection can essentially “pay out twice”

Perhaps the most significant benefit of single protection policies is the assurance of two separate payouts.

If one of you passes away, the surviving partner’s cover remains active until the term ends, continuing to provide protection.

This can be particularly reassuring for couples who want to ensure ongoing financial security for their loved ones after they pass away.

It tends to be more flexible

Single policies typically offer more flexibility to tailor the cover to your individual needs.

For instance, you might choose a higher level of cover for the primary earner or a partner who is a primary carer.

What’s more, you can adjust or cancel policies independently as circumstances change. Or, if your relationship ends, then your individual cover would usually be unaffected, providing essential peace of mind.

You can decide who receives a payout

When you set up a package of life cover for yourself, you have greater control over who receives the payout if you pass away. This makes it much easier to allocate funds for specific purposes, such as supporting children, grandchildren, or other dependents.

This could be invaluable if you’re planning to use life insurance to cover a future IHT bill on your estate, or to help your children fund their education, for instance.

The cons of individual life insurance

It could be more expensive

As you read earlier, it will likely be slightly more expensive to take out two individual packages of protection than one joint agreement.

If you don’t require the extra security of continued cover for your surviving partner, the additional cost of individual insurance might not seem justifiable, especially since it will add up over the years.

You might find two individual policies are more complex to set up and manage

Managing two separate policies, one for you and one for your partner, will generally involve more paperwork to deal with. You will have two separate premiums to track, and may spend more time comparing packages of cover to ensure you’re adequately protected.

This all takes time and effort, which may be better spent elsewhere, especially if you lead a busy lifestyle.

Get in touch

If you’re still unsure which form of cover would best suit you, we could help you put together a package of financial protection that suits your needs and benefits your family.

Email info@depledgeswm.com or call 0161 8080200 to find out more.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.

Note that life insurance plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.

Cover is subject to terms and conditions and may have exclusions. Definitions of illnesses vary from product provider and will be explained within the policy documentation.

The Financial Conduct Authority does not regulate estate planning or tax planning.