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2 Oct, 2017

Not sure of the difference between a joint & dual life policy?

A joint life policy is a life assurance policy in which two people are covered. However, there is only one potential pay out. The claim is only paid out on the death of the first person. Once the claim is paid the policy ends.

Dual life is again a life assurance policy in which two people are covered. However, there are two potential pay outs. If one person dies, the claim is paid out and the cover remains on the surviving person, if the second person dies there will be a second pay out.

The difference in price in joint life versus a dual life policy can be quite negligible but the difference in benefits are quite significant.

 

Which life policy is right for me?

When it comes to choosing the right life policy for you, it is important to take the following into consideration: your age, health, the level of protection that you need, your financial obligations and term you need the cover for. Let’s look at the following example:

Gavin and Karina are looking at taking out life assurance as family protection. Gavin is 35 years old and Karina is 34 years old. They are both non-smokers. They are looking for cover of €300,000 over 20 years.

A joint life policy would cost them €36.16 per month. With a joint life policy, if either die throughout the 20 year term there would be a pay out of €300,000 and the policy would end. If the second person died during the remaining term, there would be no further pay out.

A dual life policy would cost them €36.84 per month. With a dual life policy, there would be two potential pay outs. If one person dies, the policy would still insure the surviving person. Should the surviving person die, there would be a further pay out.

Thus with a joint life policy, the maximum that could be paid out would be €300,000 and with a dual life policy, the maximum that could be paid out is €600,000.

 

Contact oomph now and we can help you decide which cover is best for you.