This information has been written for the benefit of couples who are looking to purchase life insurance. It shows you the benefits of taking out two single life plans instead of a joint life first death policy.
Having come to the conclusion that you need life insurance for one reason or another, most people do not think that in some cases it could far more beneficial to take out two single life plans rather than a joint life first death.
To understand this principle you first need to be aware of the choices open to you. Say for example you are a couple who need life insurance for whatever reason. Most people in this position would opt for a joint life first death life insurance plan. Joint life first death is simple in so much as the benefit is paid once in the event of the first person dying. Once this event has taken place the plan ceases and there is no cover for the surviving individual.
An alternative to the joint life first death plans is to take out two single life policies; one for each life assured. In the event of a person dying, the sum assured will pay out just like before but with the additional benefit of the surviving partner's life insurance remaining. This is because their plan is not affected by the death of a partner.
It is quite common that when couples take out plans to insure themselves that should one of them die the other is in a position of having no life cover at all. This commonly leaves them needing to arrange life insurance as they may still have a need to insure their lives for one reason or another. If this event is sometime after taking out the original plan they will probably find that the cost of cover is considerably higher at this point due to many reason not least the fact that the life assured is that much older and more expensive to insure.
Two single life insurance plans can also be of benefit over a joint life first death in the event that the relationship breaks down. It should be noted on this point that 4 in ten marriages do end in divorce and furthermore a higher figure than that of ordinary relationships do end in permanent separation. You do need to be aware that when this sort of thing happens assets and belongings need to be divided and split equally accordingly. Most if not all life insurance plans do not separate at all and as such need cancelling and rewriting which can be an issue again if you are older and have had health issues. Two single life plans on the other hand do not need separating as they are by definition already two independent plans so can be taken away by their respective owners.
A lot of people assume that taking out two plans rather one joint is a lot more expensive and therefore unaffordable. This is far from the truth arranging two separate plans over one joint one can invariably only cost about 10% more on the overall premium. When you factor in the increase benefits already stated above an extra 10% is a small price to pay.
One of the most important benefits still not mentioned is the fact that having two plans could result in double the payout. On a joint life first death plan there will only ever be one life insurance payout once the first life assured dies. As two single life plans are written on each individual if both individuals died then both plans would pay out in full. Again when you factor in this can normally only cost an additional 10% extra in premium payments it makes it very financially beneficial.
So to confirm two plans written on single life basis are better than one joint life first death because, they are flexible in the event of separation, they will payout twice the amount on death of both lives assured for normally only about 10% more in premiums. If one person dies the other is not having to sort out life insurance at higher rates due to age or adverse health.
To arrange your free realtime quotes for your single life insurance plan rather than joint life first death life cover visit life-ins.co.uk
