Joint life cover works much like standard life insurance. You choose how much you want to be covered for, and for how long. If you or your policy partner pass away during this time, your loved ones receive your cover amount as a cash pay-out.
There are two types of joint life cover to choose from:
First death policies pay out on the first policyholder death. The second policyholder will receive the pay-out to use however they want. But after that, the policy ends, and the survivor will no longer be covered. This means if they still want life insurance, they’ll have to take out a new policy.
These are a good choice for couples who share responsibility for the bills. The pay-out ensures that the survivor isn’t left struggling to make ends meet if their partner passes away.
Second death policies pay out when both of you die. This could be years apart or at the same time but has to be within the cover term of your policy to get a pay-out. If one of you dies, but the other survives after the end of the policy, then they or their beneficiaries won’t receive a pay-out.
These are ideal for couples who each earn enough to support themselves and their loved ones should their partner pass away. Here the pay-out is usually used to support their children if, tragically, both their parents were to pass away.