Single Life Insurance vs. Joint Life Insurance

When married couples wish to buy life insurance, there are two popular options: single life insurance and joint life insurance. A single life insurance policy is a policy that covers only one person. This policy pays the death benefits to your beneficiary if you die within the period stated in your life insurance contract.

A joint life insurance policy, however, covers two people. Here the death benefits are paid to the beneficiary after your death or the death of you and your spouse.

It is important to note that while both policies are different, they share some things in common.

One similarity between single life insurance and joint life insurance is that both only pay death benefits once. Furthermore, both policies allow you to purchase additional coverage to customize your insurance policy. Here we will compare both policies to help you choose the policy that will suit the needs of you and your spouse.

Coverage

A single life insurance policy covers only you and provides death benefits to your beneficiary after your death. On the other hand, a joint life insurance policy provides coverage for you and your spouse under the same policy.

Cost

A single life insurance policy is more expensive than joint life insurance. In contrast to single life insurance, the joint life insurance policy is affordable.

Cancellation of policy

If you wish to cancel your single life insurance policy, it is quite easy. It is difficult to cancel a joint life insurance policy. If your spouse wants to withdraw from the joint life insurance policy, the only options you have are to pay their share of the premium or give up the insurance policy.

Contract fulfilment

Under a single life insurance policy, your death and payment of the death benefit means the end of the policy. Unlike a single life insurance policy, a joint life insurance is different; you can choose when the policy ends; either with your death or the death of you and your spouse.

Customization of policy

A single life insurance policy allows you buy your cover with consideration for your health, future, etc. When you purchase a joint life insurance policy though, the same conditions apply to you and your spouse. The inclusion of you and your spouse in the contract consequently makes it more difficult to customize your insurance policy.