Dual Life Assurance vs. Joint Life Assurance: Which One to Buy?

Are you a family man or woman concerned about providing for your young children? Then you should consider getting a life assurance policy not just for yourself but also for your spouse.

Life assurance is ideal for breadwinners who want something to replace their lost income (as a result of their death). The death of a breadwinner will mean financial disaster to the family. Without the breadwinner’s income, the family will have no money for food, utilities, mortgage payments and so on.

The impact is less so if the household is a two-income household, with both spouses working, however, the loss of the income of one can still cause a serious effect on the finances of the family. And, even if only one spouse is working while the other spouse is staying at home, the loss of the spouse who is staying home will also have its own financial loss. This will mean that the surviving spouse will have to pay for someone else to perform the childcare and housework duties.

Now, with these in mind, it is important to provide the right coverage for both you and your spouse so that if something happens to both of you, you can be assured that your family’s needs are taken care of. You can look into dual life and joint life assurance policies for protection. These policies offer more affordable rates as compared to buying two life assurance policies.

But these two products actually have one big difference that you should look into.

Joint life assurance is basically one insurance cover, only for two lives. You can choose between a first to die or last to die policy. A first to die policy will pay when one of the insured couple dies – the surviving couple will usually be the beneficiary for the policy. Once the policy pays out, the coverage will cease, the policy is considered terminated and no further payouts will be given.

Meanwhile, dual life assurance is essentially two coverages in one. This means that it covers your and your spouse’s lives independently. If one of you were to die first, the other spouse gets the payout and will still maintain his or her own coverage. If both spouses die at the same time, there will be two life insurance payouts. Basically, the coverage for one life is independent of the other.

To protect your loved ones for less, fill the form on the right to get your life insurance quote.