Couples taking out life assurance should think twice before deciding on a joint policy, says ASDA. According to the company, two single life policies can give peace of mind as one of the couple will still be covered if their partner dies. Two single policies can also cost the same or only a few pence more than a joint policy, if you shop around for cover.
For couples like EastEnders’ Sonia Jackson and Martin Fowler – who got married on 10 June – taking out life insurance which pays out a lump sum or pays towards the mortgage if one of them dies whilst they are covered is a wise move to avoid financial hardship for the remaining partner. But a joint policy may not be the best answer, especially for couples who have children or other dependents, like Martin’s mum Pauline.
Joint policies will only ever pay out when one of the couple dies, leaving the remaining partner without cover. Should the worst happen to them, any surviving dependents wouldn’t receive a penny. The only option is for the remaining spouse to take out a new, single life policy, which could work out quite expensive if they’re older or in poorer health than when the joint policy was taken out.
“Many people take out joint life policies because they think its cheaper than two single policies, but this is not always the case. Our data shows that two single policies can cost only a matter of a few pence more – or, in some cases, even the same price as – a joint policy, if you shop around for cheaper cover,” said David Rutley, director of financial services at ASDA.
Separate life assurance policies for Martin and Sonia, providing them each with £100,000 of cover over a 15 year term, would cost, respectively, £6.70 and £5.10 a month with ASDA. A joint life policy, which would pay out the sum assured only once, would cost them £9.50 a month. This represents an additional premium of only £2.30 per month for both the joint policies, a small price to pay for the comfort that if one partner claims on their policy, there is still another policy which can also pay out if required.1
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A 34-year-old couple taking out the same level and type of cover as Martin and Sonia, and non-smokers like them, would pay £8.50 (him) and £6.90 (her) per month for two policies. A joint policy would cost them £12.40 a month. 2
“Another advantage of two single policies is it’s one less thing to worry about if the couple decide to go their separate ways. Should the garden in Albert Square not stay rosy for Martin and Sonia, they would be safe in the knowledge that they’re each still covered,” added David Rutley.
Further information Ed Watson, ASDA Press Office: 0113 241 7829
Suzanne Hitchcock/Sarah Frost, Fishburn Hedges: 020 7839 4321
Notes to editors
1 Figures for Martin and Sonia based on ASDA level term assurance for
Male, non-smoker, aged 19 next birthday, £100k sum assured, 15 year term
Female, non-smoker, aged 20 next birthday, £100k sum assured, 15 year term
2 Figures for 34 years old couple based on ASDA level term assurance for:
Male, non-smoker, aged 35 next birthday, £100K sum assured, 15 year term
Female, non-smoker, aged 35 next birthday, £100K sum assured, 15 year term
Released on behalf of ASDA Financial Services Ltd who are Introducer Appointed Representatives of Scottish Widows. ASDA Life Insurance plans are provided by Scottish Widows plc.
Full terms and conditions are available on request from Scottish Widows. Charges, terms and limits may change.
Scottish Widows plc, Registered in Scotland No.199549. Registered office in the UK at 69 Morrison Street, Edinburgh, EH3 8YF. Telephone 0131 655 6000. Scottish Widows plc is a member of the Scottish Widows and Lloyds TSB Marketing Group, members of which carry on the business and services associated with life assurance, pensions and investments. Scottish Widows plc is authorised and regulated by the Financial Services Authority.
ASDA is also a low-cost provider of motor, home, travel and pet insurance and has a high rate of inclusivity, meaning ASDA insurance is available to [ASDA to confirm percentage] of callers.
For life insurance quotes, customers should visit www.asda.com or call 0845 600 2732, 8am-8pm Monday-Friday, 9am-5pm Saturday & Sunday.
