What is joint life insurance?

Joint life insurance is a single policy taken out by two people. Usually that’s couples who want to make sure both will be looked after financially in case the worst should happen.

These policies are designed to provide financial protection for both of you without needing separate policies for each person. Typically, having a joint policy is cheaper than taking out separate individual policies.

Joint policies are often used to cover specific joint financial commitments like a mortgage, but they can be taken out to cover more general expenses. In fact, they can be suitable wherever two people feel they would each be financially affected by the death of each other.

Why choose joint life insurance?

A joint life insurance policy is potentially ideal for two people who want to share one policy that covers both of them. This can simplify your cover and potentially save you money compared to taking out two separate policies.

It’s particularly useful if you have shared financial responsibilities, such as a mortgage or children to care for. With just one policy, you can ensure that your partner or family will be taken care of financially if the worst happens to one of you.

Joint cover is not just for married people, civil partners or cohabiting couples. It can also be suitable for business partners, and even friends who share a mortgage.

Reasons to choose term life insurance:

  • Cost-effective: Often cheaper than buying two individual policies.

  • Peace of mind: Ensures loved ones are financially protected if something happens to either of you.

  • Simplicity: Fewer policies to manage, with one point of contact for both of you.

  • Flexible options: Choose term or whole life, the amount of cover, and additional benefits.

What happens when the policy pays out?

When an insurance policy pays out, where the money goes depends on the type of policy you have and who it's set up to benefit.

If you take out a joint life policy, the payout usually goes to the surviving policyholder when the first person dies. There’s no second payout when the other person dies.

However, there are other types of joint policy:

  • ‘Dual life’ policies are available that pay out when the first person dies, but life cover still stays in place for the surviving partner.

  • There are also joint policies that pay only on ‘second death’ although these tend to be used for inheritance tax planning.

Payouts are typically made as a single lump sum. However, if you choose a term insurance plan on a joint life basis, you can opt for a ‘family income benefit’ policy. This is a form of term insurance that pays a regular amount of money to your family or other chosen beneficiary.

What does joint life insurance cover?

Typically covered

Payments upon death from a joint life insurance policy could clear outstanding debts, replace lost household income, cover school fees… it’s up to you to decide. Some policies also come with standard or optional extras, including:

Terminal illness cover: Typically pays out early if you’re diagnosed with a condition that’s expected to be fatal within a certain time (e.g. 12 months).

Critical illness cover: Pays out if you are diagnosed with a serious illness covered by the policy.

What isn’t covered?

While joint life insurance offers valuable protection, there are a few situations where a claim may not be paid:

  • Missed payments: If you stop paying your premiums, your cover could end.

  • Suicide: Many policies exclude death by suicide within the first 12 months.

  • Fraud or non-disclosure: If you aren’t honest and accurate when applying, the insurer could refuse to pay out.

  • Excluded health conditions: Some policies may include exclusions based on your medical history, for example if you have a pre-existing condition.

  • Outliving your policy: If you choose term insurance and both survive the policy term, the cover ends and there’s no payout.

Other events may not be covered, such as death due to war or participation in extreme sports. Please see each policy’s exclusions and limitations: always read the small print to make sure you understand the terms and conditions.

How much does joint life insurance cost?

Joint life insurance is generally cheaper than taking out two individual policies. Your monthly premiums will depend on factors like:

  • Your ages: The younger you are when you take out a policy, the cheaper your premiums will usually be.

  • Your health: Existing health conditions typically mean premiums are higher.

  • Your lifestyle: Lifestyle choices such as smoking can push premiums up.

  • Your occupations: Some occupations make life insurance more expensive.

  • The ‘sum assured’: A policy that pays out £250,000 will cost more than one for £100,000.

  • Term vs whole life: Joint life policies can be term or whole life - term policies tend to be cheaper than whole life insurance.

  • First death, second death or dual cover: Premiums may differ depending on when the policy pays out.

  • Added benefits: Adding benefits such as critical illness cover will typically increase the premium.

  • Level or decreasing cover: Policies with a decreasing sum assured (often used with mortgages) may be cheaper than policies where cover remains at the same level.

  • Reviewable or guaranteed premiums: Reviewable premiums typically start lower, but can rise when your payments are reviewed. Guaranteed premiums typically start off higher, but remain the same.

You may find your own quotes come in cheaper or more expensive than average premiums. The best way to find out how much cover would cost for you is to compare quotes from leading insurance companies.

How to keep costs down

Joint life insurance is already one of the more affordable options for couples, but there are still a few ways you can reduce your premiums:

Start as early as you can: The younger you are when you take out a policy, the lower your premiums are likely to be.

Choose the right level of cover: Look at your wider financial situation, such as any savings, property or investments, and choose a level of death benefit that makes up the shortfall without buying unnecessary cover.

Look at the type of policy: Consider your needs and the costs of different policy types. For example, a decreasing term policy can be especially cost-effective if you’re covering a repayment mortgage.

Be healthy: Insurers typically offer lower premiums to people who maintain a healthy lifestyle. Stopping smoking, eating well and managing any chronic health conditions may trim pounds off your premiums.

Look at different premium options: A fixed or guaranteed premium policy might be better for budgeting and long-term cost control than a reviewable premium policy where premiums can increase.

Review your cover: If your life circumstances change you might not need as much cover. You may be able to amend your policy, or cancel it and take out a cheaper one.

Shop around and compare quotes: Each insurer has its own pricing model, so it’s essential to compare quotes before committing to a policy. Also, some providers offer special deals, like free terminal illness cover. Don’t settle for the first quote you receive; it’s always worth exploring your options.

By making a few smart choices, you can reduce your premiums without compromising on the protection you need.

Things to consider

While joint life insurance works well for many people, it’s not the best fit for everyone. Here are a few things to bear in mind:

First death policies end after the first payout: If you take out a first death policy, the cover will end after the first person dies, so there will be no protection left for the surviving partner. A dual life policy might be a better option if this is important to you.

Keep up your payments: If you miss a premium payment, your cover could stop. Some policies offer a grace period, but if premiums aren’t paid, the insurer might cancel the policy or refuse a payout.

Be honest in your application: Insurers can decline claims if key details were incorrect or left out when you applied.

Check the fine print: Look out for things like exclusion periods, such as not paying out for suicide within the first 12 months. Make sure you understand what is and isn’t covered.

If you’re unsure about whether joint insurance is right for you, seeking advice from a qualified financial adviser can help ensure you’re making the right decision.

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Page updated on 10th October 2025, Reviewed by Richard Groom