Should couples get single or joint life insurance policies?
Key takeaways
Life insurance pays out a cash sum if you die during the policy term, helping your family cover costs like a mortgage, bills or childcare
If you want both partners to be covered, you can choose two single policies, which can pay out twice, or a joint policy, which is usually cheaper but typically pays out once
You can also choose from different cover types, like level term for family protection or decreasing term to match a mortgage
What is life insurance?
Life insurance pays out a tax-free lump sum if you die during the policy term. This money is paid to your named beneficiaries and can help replace lost income or cover key household costs.
Two of the most common types of life insurance are:
level term insurance (also called family life insurance) where the payout stays the same throughout the policy
decreasing term insurance (also called mortgage life insurance) where the payout reduces over time, often in line with a mortgage
Both these types of cover can be set up as either single policies (covering one person) or joint policies (covering two people under one plan).
There are also other types of life insurance, such as guaranteed acceptance cover, but these are designed for more specific circumstances and work slightly differently.
Do both people in a couple need life insurance?
Not always. Whether you both need life insurance depends on whether each of you would face a significant financial impact if the other died.
Many couples with children choose to cover both parents. Life insurance for both partners can also be valuable if you have a mortgage or other shared debts that neither of you could repay on a single salary.
You may not need cover for both people if one death wouldn’t create a financial strain. For example, if one partner earns significantly more and could financially manage on their own, a single policy covering them might be enough. This can also apply if one partner already has other financial protection, such as substantial savings or a death-in-service benefit through their employer.
💡 Top tip: Don’t just think about income. If one partner provides a lot of unpaid work like childcare, you may need cover for both to account for the cost of replacing that support.
Should couples buy single or joint life insurance policies?
If you want full protection for both partners, two single life insurance policies are usually the better option. If your main goal is to cover a shared cost like a mortgage, a joint policy may be enough.
Here’s what to consider:
Cost
Joint policies are usually cheaper because they only pay out once.
Two single policies cost more, but they can pay out twice if both partners die during the term. This can provide more financial support for dependants.
Level of cover
Two single policies give you more flexibility.
Each person can choose a different level of cover based on their income, debts and responsibilities. This can be useful if one partner earns more or already has some cover, such as a death-in-service benefit.
A joint policy offers one fixed level of cover for both people, which may not suit couples with different needs.
Payout
Two single policies can pay out twice, once for each person.
A joint policy usually pays out once. Most are first death policies, which pay out when the first partner dies and then end. This leaves the surviving partner without cover.
Some joint policies are second death policies, which pay out after both partners die. These are less common and are typically used for estate planning rather than day-to-day financial protection.
What is single life insurance?
Single life insurance is a policy that covers one person and pays out a sum of money if the policyholder dies. The policyholder chooses the amount of cover, the length of the policy, and who the payout goes to.
What is joint life insurance?
Joint life insurance is a policy that covers two people with one premium. It’s often used by married couples, long-term partners or anyone with shared financial commitments.
Joint life insurance can be a cheaper option than two individual policies. But it usually pays out once, typically when the first person dies. The payout usually goes directly to the other policyholder, unless you set it up in trust.
What's the difference between single and joint life insurance?
There are a few key differences between taking out two single life insurance policies or one joint life insurance. For example:
Feature | Two single life insurance policies | One joint life insurance policy |
|---|---|---|
Cover | Each policy covers one person only | One policy covers both people |
Payout | Two separate payouts if both policyholders die within their terms | Only one payout (either on first or second death) |
Cost | Generally more expensive than a joint policy | Typically cheaper than two single policies |
Flexibility | Each partner can choose different cover levels | Both partners need to have the same cover |
Ideal for | Couples who want full individual protection or who have different cover needs | Couples who want the most cost-effective policy |
Estate planning | Each policyholder can name their own beneficiaries | First death payout goes to the surviving partner (unless written in trust) |
What are the pros and cons of single life insurance?
Pros of single life insurance | Cons of single life insurance |
|---|---|
Two potential payouts: If both partners die during the policy term, two separate payouts are made, providing more financial support for dependants | Higher cost: Two separate policies are usually more expensive than one joint policy |
Flexible cover levels: Each person can choose a different amount of cover based on their income, debts and responsibilities | More to manage: You’ll have two policies, with separate applications, payments and paperwork |
Not affected by separation: If you break up, each person keeps their own policy with no changes needed | May be more cover than needed: If you’re mainly covering a shared cost like a mortgage, two policies could be more than necessary |
Greater control: You can change, increase or cancel your policy without affecting your partner | Can be harder to coordinate: You’ll need to decide separately how much cover each person needs, which can add complexity |
Better for different needs: Useful if one partner needs more cover, for example if they earn more or have higher financial commitments | Not always budget-friendly: For some couples, the higher combined cost may make this option less affordable |
Can complement existing cover: Works well if one partner already has cover, such as death-in-service, and the other needs additional protection |
What are the pros and cons of joint life insurance?
Pros of joint life insurance | Cons of joint life insurance |
|---|---|
Lower cost: One joint policy is usually cheaper than taking out two separate policies | Only pays out once: Most joint policies pay out on the first death and then end, leaving the surviving partner without cover |
Covers shared responsibilities: Designed to protect joint financial commitments like a mortgage or shared bills | Less flexibility: You can’t tailor cover levels or terms individually |
Simpler to manage: Only one policy, one premium and one set of paperwork to keep track of | Can be complicated if you separate: You may need to cancel, split or replace the policy after a breakup |
Suitable for couples with similar needs: Can work well if both partners want the same level of cover for the same period | May leave gaps in cover: The surviving partner may need to take out a new policy later, often at a higher cost |
First payout provides immediate support: A payout on the first death can help the surviving partner maintain their standard of living | Not ideal for different financial needs: If one partner needs more cover than the other, a joint policy may not be suitable |
Can I get joint life insurance with a medical condition?
Yes, you can usually get joint life insurance if one or both of you have a medical condition, but it may affect the price or terms.
Insurers assess each person individually. If one partner has a medical condition, the overall premium for the joint policy will usually be based on the higher-risk person. This means you may pay higher premiums and certain conditions may be excluded.
If one partner has more complex health needs, it can sometimes be better to take out two single policies. This allows each person to be assessed separately and may give you more options.
What happens to a joint life insurance policy after divorce or breakup?
If you and your partner separate, you’ll usually need to review and change your joint life insurance policy. It won’t update automatically.
You typically have three options:
Split the policy: Some insurers allow you to turn a joint policy into two single policies. This isn’t always available and can be more expensive, as each person is then insured individually
One person takes over the policy: One partner keeps the existing policy, often to cover something like a mortgage, while the other arranges new cover
Cancel the policy: You can cancel at any time, but you won’t get any of the premiums you’ve already paid back
If you still share financial responsibilities, such as children or a mortgage, you may need to keep some level of cover in place. In some cases, divorce agreements require life insurance to continue for the benefit of dependants.
Should I put my life insurance policy in trust?
Yes, it is usually recommended to write your life insurance policy in trust, as it keeps the payout outside your estate and gives you more control over who receives it.
This means:
it won’t usually be subject to inheritance tax
the payout goes directly to your chosen beneficiaries
it can be paid out more quickly, without waiting for probate
for joint policies, it can help keep the payout out of the surviving partner’s estate
Both single and joint policies can be written in trust. Trusts are often free to set up, and can be done when you take out a policy or be added later through your insurer.
Can a joint life insurance policy be put in trust?
Yes, you can put a joint life insurance policy in trust. Both policyholders will need to agree who should receive the payout if one of you dies.
If you don’t put a joint policy in trust, the payout is usually paid automatically to the surviving partner. This can have a few downsides:
they can use or distribute the money as they choose, even if you intended it for a specific purpose
any money they don’t spend will usually become part of their estate when they die
This matters because estates can be subject to inheritance tax. If the total value exceeds the threshold (currently £325,000), anything above it may be taxed at 40%. It can also affect who ultimately receives the money. If your partner’s circumstances change, for example if they remarry or have more children, the payout may not go to the people you originally intended.
Putting the policy in trust helps you keep control over who benefits and can reduce the risk of tax later on.
Where can I find couples life insurance quotes?
To find the best life insurance policy for you and your partner's needs, it's wise to compare quotes. MoneySuperMarket offers a straightforward way to do this by providing your personal details and comparing a range of deals from UK providers.
Once you've found the right policy, you can finalise your purchase directly with the chosen provider.
Author
Saarrah Mussa
Former Content Writer
Saarrah was a MoneySuperMarket's in-house pet insurance expert. With broad experience writing across insurance products Saarrah is acutely aware of the complexities and costs consumers have to face...
Reviewer
Beth Leslie
Senior Insurance Content Editor
Beth is an experienced writer and editor who specialises in financial and economic content. She is currently the Senior Insurance Content Editor for MoneySuperMarket. Beth is passionate about making...
