Benefits of single v joint life insurance policies
It's widely reported that January is the most popular month for divorce, with couples putting the festive season behind them and making a clean start in the New Year.
Conversely, spring, the traditional start of the wedding season is just a few months away. Whether coming to the end of a relationship, or starting a new one, Confused.com is reminding people to consider their life insurance protection as well as everyday finances such as current accounts and savings accounts, to ensure that being lucky or unlucky in love doesn't mean being financially less protected.
Matthew Lloyd, head of life insurance at Confused.com, said: "Whether coming to the end of a relationship or entering into a new one it's vital that couples talk about life insurance protection as well as how to manage day to day banking and finances. In addition to ensuring they have protection (69% of those in a relationship or who are married don't have any life insurance cover) it's important to consider whether to opt for two single policies or one joint policy.
"Taking out two single policies can be beneficial in the event that a relationship breaks down. Unlike a joint life insurance plan, two single plans are already separate. This means that your plan wouldn't have to be cancelled in the event of a divorce, and you wouldn't have to take out a new plan, which could be an issue, especially if you're older or have suffered health problems. It also means that should the worst happen to one partner, there is still cover in place for the other so that future dependents can be protected.
"Joint life insurance policies have lower monthly premiums, but although it's a cost effective means of providing life cover it could potentially leave the remaining partner without cover in the future."
Confused.com research shows
60% of people don't have any life insurance;
71% of those without insurance are married, in a relationship or divorced;
35% of those without life insurance have children.
Couples can compare life insurance policies at confused.com/life-insurance . Joint term life insurance policies are available from £5.00 a month. Some providers offer the option to split joint policies into two single policies if a couple decides to separate.
Using the example of a male and female both aged 32 (both non-smokers looking for £100,000 level term cover), two single policies are available from £10.31 a month; only just over £3 a month more for both single policies than a joint policy priced at £7.09.
"In addition to cost, it's important to try and think about how flexible your life insurance planning may be in the future when deciding which type to take out" continues Matthew. "But whichever type of policy you choose it's important to shop around to find the right cover at the right price."