Single, Joint and Dual life insurance explained
Are you confused with all the different types of life insurance that is available to you? We have explained below single, joint and dual life insurance.
Single life insurance
A single life cover is for one life only. The benefit is paid when this person dies to the persons declared beneficiary. This is normally done when a death claim is filed and the death certificate is submitted.
Joint Life insurance
A Joint life is cover on two lives. This is when the cover insures two people but the claim is paid out on the first death only, there is only one payment made under this policy. Typically the payment is made when the first of the two people covered dies however some joint life policies pay on the second death instead of the first.
Dual Life insurance
A dual life cover also insures two people but a claim can be paid on both deaths. If one person dies, the policy continues in the name of the survivor. Then when the second person dies, their life cover payment is also paid out.
Dual life insurance vs. Joint life insurance
It is important to get the right life cover for both you and your spouse so if anything happens to either of you, your family is taken care of.
If you are the sole breadwinner of the family it is important to get covered in the event of your death as the loss of the only income will devastate your family. However the loss of the partner that is not covered can also be devastating in the sense if they provide the childcare and household duties you will now need to employ someone to take over that role.
This impact is a little less if there are two incomes in the household with both partners working however the loss of an income is still very stressful for the family.
It is important to get the right coverage that suits your family situation to ensure your family’s needs are taken care of. Buying Dual or joint life insurances is more cost effective than two separate single life insurances.
As explained above the big difference between the two is that Joint, only one payout is paid but with Dual two payouts’ are paid. So it depends on your life situation which is best suited to you.
Why not have a chat with us and we can advise on the best policy for you and your family.