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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.

One other reason why two single life plans can be far more beneficial to the one joint life first death plan is down to how relationships and marriages work, or not, as the case may be. It is said that 40% of marriages will end in divorce and a significantly higher percentage of relationships will end in separation. In these situations assets have to be split in order to pass equal benefit to each partner. Life insurance plans are in most cases, if not all, impossible to separate. So if you have to single life plans this problem does not present itself as each life assured walks away with their own plan in tact.

You might be forgiven for thinking that arranging two plans in favour of one joint life insurance plan would be considerably more expensive and therefore make it financially prohibitive. This is not the case, in most cases arranging two life insurances plans for a couple need only cost approximately 10% more on the premium. Once this is taken into account paying an extra 10% more in premium is significantly worthwhile when assessing the overall benefits that you get from having the two plans over the one.

An additional benefit that is important to remember with two single life plans is that in the event of the first person dying the surviving plan holder as they still have their plan in tact they essentially experience the benefit of double the cover as their plan will pay out the sum assured again if they die.

So in summary having two plans over one means you do not have to reapply for life cover if one of the lives assured dies, you have a far more flexible arrangement should you separate and finally from a cost point of view, being on average only 10% more monthly but with twice the amount of life cover this type of arrangement is far more financially beneficial.