This is a choice for the individual. Whilst the cost of the premiums will be cheaper if a joint policy is taken out, most insurance companies will pay out only once so if one person dies, the insurance will be paid out and the policy ended. When the other person then dies, there will be no payment out. With separate policies, although they might cost more, if one person dies then the insurance company will pay out and then if the other person dies then the insurance company will pay out again under that separate policy.
You can legally have as many life insurance policies as you like. Some people take out more than one policy to cover different requirements, but a single policy covering everything you need may be cheaper.
Joint life insurance covers both individuals under one policy, providing a payout upon the first death. In contrast, two separate policies would pay out upon the death of each insured individual.
Joint life insurance is commonly used to cover a joint mortgage. The lump sum benefit can be used to repay the outstanding mortgage balance in the event of one of the insured individuals’ death.
Joint life insurance is often more cost-effective than purchasing two separate policies. However, it’s crucial to assess individual needs and consider factors like coverage amount and term length.