Joint vs Individual Life Assurance...

Sean1504

Hello All,

Me and my friend are purchasing a shared ownership property and are sorting out our life assurance and critical illness cover. I was wondering if there was any pro's or con's between getting a joint policy that pays out on the event of both of our deaths or getting individual policies? We're both aged 20 and the portion we're buying only comes to £80,500 so the premiums are coming out around £13-£16 for guaranteed level term and about £21 I think it was for joint. Just wanted to know whether there were any downsides to saving a couple of quid a month with the joint policy. Thanks in advance.

Sean

P.S. I did try searching first for something along the same lines but couldn't see anything. Apologies if the same questions been posted elsewhere.

dunstonh

You cover the need and in this case joint life is the need. If you do single life, you could just end up paying inheritance tax and see 40% go off to the Govt.

Sean1504

Thanks for replying so quickly, we'll only be staying in the place for the next 3 or 4 years then going our separate ways, as long as we both keep up with our repayments could we claim sometime in the future or is the policy only valid whilst we both live at the same address? Our mortgage advisor quoted us for individual policies but then i'm sure he would as that way he'll get double the £367 commission! Shame we're going to use Cavendish, cheaper for a start.

dunstonh

Our mortgage advisor quoted us for individual policies but then i'm sure he would as that way he'll get double the £367 commission!

He wouldnt get double but about half as much again. Tell him you are going to Cavendish and see if he can beat them. Cavendish are not the cheapest on life cover and he may be able to undercut them if he is a whole of market protection adviser.

Sean1504

Sorry to bump this but does anyone know the answer to this:

We'll only be staying in the place for the next 3 or 4 years then going our separate ways, as long as we both keep up with our repayments could we claim sometime in the future or is the policy only valid whilst we both live at the same address?

Our broker has been chasing us to send back the application forms for the policy he recommended and I want to be as clued up as possible when I ring him to ask if he can beat Cavendish.

Thanks

jasonking

the policies are not dependant on the mortgage, so after you go your separate ways you can keep your plan and use it for another need if that suits

Sean1504

Thanks very much for that.