Joint Life vs Dual Life Cover: What’s the Difference – and Why Does It Matter?
Please note: This blog is for general information only and does not constitute advice. The information is aimed at retail clients only. You should always seek professional advice from an appropriately qualified adviser.
All contents are based on our understanding of current legislation, which is subject to change, any information provided here is only correct at the time of posting.
When arranging life insurance for couples, one of the most important decisions is how the policy should be structured. Most people are familiar with joint life cover – it’s the traditional option for partners taking out life insurance together. But a less well-known alternative – dual life cover – could offer significantly more value and protection.
In this blog, we’ll explore the key differences between joint life and dual life cover, examine their pros and cons, and highlight why dual life is often the more comprehensive solution, especially for those looking to protect their families and finances over the long term.
What Is Joint Life Cover?
A joint life insurance policy is one policy that covers two people – usually spouses or civil partners. It pays out once: typically, on the first death. After the claim is paid, the policy ends, and there’s no further cover for the surviving partner.
There are two main types of joint life policies:
Joint life, first death – the most common structure. Pays out on the first death only.
Joint life, second death – pays out only when both individuals have died (often used in inheritance tax planning).
In most personal cover situations, joint life, first death is most common and for the purposes of this blog, the one we will be focussing on.
What Is Dual Life Cover?
Dual life insurance (also known as two single policies under one umbrella) covers both individuals separately within one policy structure. It pays out twice – once on each life, regardless of who dies first. This means that even after the first claim is made, the second life remains fully insured without needing to take out a new policy.
It’s often confused with having two single policies which provides the same level of cover, however some providers offer, dual life cover under one policy, with two separate sums assured and two separate claims.
Example: Joint vs Dual Life in Action
Let’s say a couple takes out a £200,000.00 joint life, first death policy. If one partner dies, the policy pays out the £200,000.00, and the surviving partner is left without cover. To protect themselves going forward, the survivor would need to apply for new cover – potentially at a higher cost due to older age or they have been diagnosed with a health condition.
Now let’s consider the same couple with dual life cover – also set at £200,000.00 per person. If one partner dies, the policy pays out £200,000.00, and crucially, the other person remains covered. If they later die during the policy term, another £200,000.00 would be paid – doubling the overall benefit to £400,000.00.
This simple shift in structure could mean a profound difference for surviving loved ones, especially those with children, mortgages, or business interests.
Cost Comparison: Joint Life vs Dual Life Cover
For a 45 and 40-year-old couple (non-smokers), seeking £200,000 level life cover over 20 years:
Joint Life Cover (single payout): £30.66 per month
Dual Life Cover (two separate payouts): £36.12 per month
Source – IRESS, Quotes available as of date of blog post.
For just £5.46 more per month, dual life cover could provide double the benefit by paying out on each life individually.
Advantages of Joint Life Cover
• Cost-effective – Generally cheaper than taking out two single policies
• Simplicity – One application, one premium, one policy
• Suitable for mortgages – Often used for protecting a joint repayment mortgage balance
Disadvantages of Joint Life Cover
• Only pays out once – Leaves the surviving partner with no cover
• Replacement cover may cost more – The survivor may face higher premiums or be uninsurable
• No second payout for dependants – If both individuals die, only one lump sum is paid out which may leave dependents in a more difficult financial position
Advantages of Dual Life Cover
• Two payouts, not one – Significantly more benefit for families, particularly with children.
• Both lives remain covered independently – If the first person dies, the second doesn’t need to reapply.
• Usually still cost-efficient – Though a little more expensive than joint cover, it is typically much better value than two completely separate policies.
Disadvantages of Dual Life Cover
• Slightly higher premiums – Compared to joint life cover, although still cheaper than two separate standalone policies.
• Less widely available – Not all insurers offer dual life cover within a single policy; however, two single life policies can provide the same level of benefit with slightly increased administration on application and if required, arranging suitable trusts
Which Is Right for You?
The best option depends on your circumstances, financial priorities, and the level of cover you want for your family.
Joint life cover may be appropriate if:
• Budget is tight
• You’re covering a joint debt like a mortgage and have no financial dependents, i.e. a couple with no children
• You expect the survivor won’t need further cover (e.g. older couples or retirees)
Dual life cover is often more suitable when:
• You want to ensure long-term financial protection for your children or dependants
• Each partner has their own financial liabilities or income to replace
• You want peace of mind that both individuals are fully covered, regardless of what happens to the other
Final Thoughts
Life insurance is about more than just ticking a box – it’s about protecting your family’s future. While joint life cover may seem like the most straightforward option, dual life cover offers a smarter, more comprehensive solution for many couples, potentially doubling the value of your protection for a relatively small increase in cost.
At ACJ Financial Planning, we’re here to help you navigate your options and ensure your cover reflects your family’s needs – both now and in the years to come.
If you’d like to explore what kind of financial protection is right for you, feel free to get in touch. We can guide you through the available options and help you find a solution that fits both your budget and requirements.