31st August 2016

Choosing the right type of cover

‘Single life’ policies cover just one person. A ‘joint life’ policy covers two people, and when one person on the policy dies the money is paid out and the policy ends. You will need to decide whether the joint policy pays out on first or second death as this will determine when the policy ends.

When choosing between these options, think about:
• Affordability – a joint life policy is
usually more affordable than two separate single policies
• Cover needs – do you both have the same life insurance needs, or would separate policies with different levels of cover be more appropriate?
• Work benefits – if one of you has work ‘death in service’ benefit, you might only need one plan
• Health – if your joint policy is with someone in poor health, this may increase your monthly payments

What is not covered?
Life insurance only covers death – if you can’t provide for your family because of illness or disability, you
won’t be covered.

Most policies have some exclusions that are not covered. For example, they may not pay out if you die due to drug or alcohol abuse, and you normally have to pay extra to be covered when you take part in risky sports.

If you have a serious health problem when you take out the policy, your insurance may exclude any cause of death related to that illness.

Other insurance products are available to protect against these issues which cover total and permanent disability, long-term illness, or critical illness cover.

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