Joint Life Insurance

What you need to know

• Joint life insurance can cover both you and your partner on a single policy.
• It can work out cheaper than two standalone policies.
• It can be less hassle to manage one direct debit payment and one policy.

Joint life insurance vs individual life insurance

• See more differences

  So should you apply for a joint life insurance policy as a couple? Or does it make sense to take out two single policies? See the differences below:

  	Single life insurance	Joint life insurance
  Who is covered?	Single life insurance or individual life insurance is a policy that only covers one life.	People who usually consider getting joint life insurance benefits are often married or co-inhabiting. These couples are often with dependants they want to protect if or when they die, or suffer a critical illness.
  In what events will it payout?	If the policyholder of the single life insurance policy passes away there will be a payout.	If either partner passes away there is a payout.
  When should a couple consider this type of cover?	Ideal if one partner is either much older than the other (which can drive up costs of a joint policy) or where one partner simply doesn't qualify for life insurance. If you each have different life insurance needs or one spouse doesn't need life insurance.	Ideal for any kind or form of interdependent relationship, where if the partner passes away, the other would face financial pressure immediately.

  Looking for 'first to die' life insurance? First to die policies are not offered in Australia. If you want to read more about first to die cover you can do so here.

Direct life insurance policies that offer joint cover

Pros and cons of a joint life insurance policy

Pros

• Affordability. The cost of insuring two people instead of one is cheaper, which in turn affects the price of the policy itself.
• Peace of mind for both of you. If only one of you has life insurance cover, only one of you is protected – unlike with joint life insurance.
• Convenience. It's one less policy to look after and one less monthly premium payment to keep up with.

Cons

• Potentially complicated if your relationship breaks down. You'll need to cancel, split or agree to keep your policy in place.
• You might not receive a discount. It might not be worth it if you can't receive a discount.

How do I speak to my partner or spouse about life insurance?

Why you can trust Finder's life insurance experts

FAQs about joint life insurance

• What is joint life insurance?

  Joint life insurance is a life insurance policy that looks after two people – usually a spouse or de facto partner. However, it generally only pays out when the first person on the policy dies.

• What are the main reasons for getting a joint life insurance policy?

  The main reason for getting a joint life insurance policy is this: it pays out regardless of which partner dies, and it's often cheaper than taking out two standalone policies, especially if you can get a discount.

• What happens to joint life insurance if we separate as a couple?

  If you split up, it's worth speaking to the life insurer to see how you can work out a way to keep cover in place. If you cancel your policy, you'll lose out on any benefits.

• Is there a joint term life insurance?

  Yes, term life insurance is often available as a joint policy. You can ask your chosen insurer at the time of application to be sure.

• Is it better to get joint life insurance?

  One of the main advantages of getting a joint life insurance policy is it pays out regardless of which partner dies. Plus, it's often cheaper than taking out two standalone policies, especially if you can get a discount.

Speak with a broker about joint life insurance