Joint Life or 2 x Single Life Policies

jjcm

We're thinking of cashing in our expensive endowment policy, paying off some of the mortgage and then re-jigging our mortgage over an extra 5 years to a full repayment using a new term policy.

Does anyone know if it is better to have 2 x single life policies, in trust, or 1 joint life? It doesn't matter too much about the cost as they're both coming out fairly similarly priced, with the joint life slightly cheaper each month.

This way, we can pay our mortgage off completely in 10 years (with a fixed rate - knowing how much we're going to pay from now on) and not have to worry about getting a loan of say £40,000 in 5 years time to pay off the balance the endowment won't be!

Any suggestions would be gratefully received - I am not looking for advice, but thoughts really, as we're making our own minds up and researching ourselves.

Cheers :beer:

clear_blu

As your assurance policy is intended to cover a specific event (if one of you should die during the term of the mortgage, the other would not have the burden of paying it from one income) I would suggest choosing the cheapest option.
As the joint life is usually almost half the cost I would go with that.
I have specifically refrained from commenting on your decision on whether to surrender the endowment or not.