This article is aimed at couples buying life insurance and the benefits over cost of having or arranging two single life plans rather than just arranging a joint life first death plan for both individuals.
Having come to the conclusion that you need life insurance for one reason or another, most people do not think that in some instances it could far more beneficial to take out two single life plans rather than a joint life first death.
To make a decision about the life indemnity you want to take out you want to be aware of the options that are useable to you.
For example you could be a couple that are looking for life insurance cover. Most souls would choose to take out a joint life first death policy. Joint life first death is an easy plan to understand, the sum assured of the plan will pay out in the event of the first person dying. After this event the plan finishes and there is no remaining life indemnity to cover the surviving partner.
A substitute to the joint life first death plans is to take out two single life policies; one for each life assured. In the event of a person dying, the sum assured will pay out just like before but with the excess benefit of the surviving partner's life insurance remaining. This is since their plan is not touched through the death of a partner.
A lot of people who arrange life insurance cover on the joint life base do obtain that their cover ceases whenever their partner dies and subsequently are then left with no insurance at all. As a result they obtain themselves in a lot of occasions requiring life insurance all over again. The problem is if you have grown senior throughout the interim period or have suffered any medical conditions because taking out the archetype plan getting a new one can be hampered, and in some cases the cost of such cover can be quite considerable higher than expected.
One other reason why two single life plans can be far more beneficial to the one joint life first death plan is down to how relationships and marriages work, or not, as the case may be. It is said that 40% of marriages will end in divorce and a significantly higher percentage of relationships will end in separation. In these situations assets have to be split in prescribe to pass equal benefit to each partner. Life insurance plans are in most cases, whenever not all, impossible to separate. So whenever you have to single life plans this problem executes not present it as each life assured walks away with their own plan in tact.
A lot of individuals assume that taking out two plans rather one joint is a lot more costly and therefore unaffordable. This is far from the truth arranging two separate plans over one joint one can constantly only cost about 10% more on the overall premium. When you factor in the increase gains already stated above an additional 10% is a small cost to pay.
An additional benefit that is significant to remember with two single life plans is that in the event of the first person dying the surviving plan holder as they still have their plan in tact they essentially experience the benefit of double the cover as their plan will pay out the sum assured again if they die.
So in summary having two plans over one means you do not have to reapply for life cover when one of the lives assured dies, you have a far more flexible agreement should you separate and finally from a cost level of view, being on average only 10% more monthly but with twice the amount of life cover this type of arrangement is far more financially beneficial.
Uchenna Ani-Okoye is an internet marketing advisor
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