Thinking about taking out a joint life insurance policy? Here’s what you’ll need to know.
If you and your partner or spouse already share a home, a car and the everyday costs of life, getting a joint life insurance policy can feel like a natural next step. Still, this isn’t as straightforward as it sounds, which is why we’re going to explore the pros and cons.
The Real Cost of a Joint Life Insurance Policy
A joint life insurance policy covers two people under a single policy. When one person passes away, the policy pays out a lump sum to the surviving partner or the nominated beneficiaries. After that payout, the policy ends – even though one person is still alive.
While joint policies are often more cost effective than taking out two separate life insurance policies, there is a trade-off. As you only get one payout, if the surviving partner still needs cover after that, they’ll have to apply for a new policy, which may be more expensive due to age or changes in health.
More Reasons Two Think Twice
Many insurers in South Africa don’t offer true joint life policies, meaning your choice can be limited from the start. And if your relationship changes, be it due to separation or divorce, altering or splitting a joint policy can become complicated.
In some cases, one partner may need to continue paying the premium to keep the policy active, leaving the other without cover. Reapplying later in life could mean higher premiums or even declined cover if health has changed.
MiWayLife Makes It Easier for Couples
This is where MiWayLife takes a different approach. Instead of locking you into a joint life insurance structure, you can add your partner as an additional life insured on your policy. You still pay one premium, but each life insured is covered individually. This means that if either of you passes away, a lump sum is paid out to that person’s chosen beneficiaries.
It also allows for more adaptability as your life evolves. You can add or remove a partner or family member when your circumstances change – provided they are under the age of 65 at the time of addition. Many couples prefer this setup because it balances shared responsibility with personal security. You’re connected but still protected as individuals.
The Bottom Line
Life is always changing and nothing stays the same which is why we believe the best life insurance policy should be able to evolve and grow as you do. Why not get a quick, obligation-free quote from MiWayLife today? We’d love to impress you with our affordable premiums.
Did you know:
You can now take out life cover with us online in a few simple steps. No calls and no agents! Make sure to take care of those you love today by buying MiWayLife cover online.
