Joint Life Insurance allows you and your partner to be covered by a single policy with the same terms and conditions. It will be paid out when one partner passes away. The surviving partner will then not be insured. This option is cheaper than most due to its one payout.
How to decide whether or not you need Joint Life Insurance
The best way to decide if this type of policy is right for you is to look at whether it would suit your requirements. It is most suited to nuclear families where both partners contribute an income to the household. If a partner passes away, their spouse and children will then be financially secured even though an income will be lost. As the policy is usually cheaper than two separate policies, couples who are struggling financially may also find a Joint Life Insurance policy more financially viable. In the case of divorce or separation, the policy cannot be divided up. If one partner decides to not pay their half, the policy will cease to exist unless the other partner decides to take it over.
In South Africa, Joint Life Insurance is often very difficult to find as not many Life Insurance providers offer the product. Most people therefore decide to take out a standard Life Policy that only covers one person. Everybody’s situation is different, which is why it’s always best to compare Life Insurance quotes from a range of providers before you make your final decision. Costs can vary greatly so do enough research before you choose a policy for you and your partner.
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