Best Life Insurance for Couples UK 2025

Securing your shared future is one of the most important financial conversations you can have as a couple. Whether you're buying your first home, welcoming a child, or simply building a life together, planning for the unexpected is a profound act of care. Life insurance is the cornerstone of that plan, providing a financial safety net should the worst happen.

For couples in the UK, the first major decision is choosing between a single policy covering both of you—a joint policy—or two separate individual policies. The difference might seem subtle, but the implications for your long-term financial security are significant.

This definitive 2025 guide will walk you through everything you need to know. We’ll explore the mechanics of joint versus individual life insurance, examine real-life scenarios, and delve into the wider world of protection like critical illness and income protection. Our goal is to empower you with the knowledge to make the best choice for your unique partnership.

Joint Policies vs Individual Life Insurance Explained

At its core, life insurance for couples boils down to one key question: do you want one policy that covers you both, or two separate ones? Let's break down exactly what each option entails.

What is Joint Life Insurance?

A joint life insurance policy is a single policy that covers two people. It requires one application, one set of underwriting, and one monthly premium. However, the crucial detail is how it pays out. There are two main types:

1. 'First Death' Policies: This is the most common type of joint policy. It pays out the agreed-upon lump sum once, upon the death of the first partner. After the claim is paid, the policy ends, leaving the surviving partner without any further life insurance cover from that policy. These are often used to cover a specific joint debt, like a mortgage.

2. 'Second Death' Policies: This type is much less common for general family protection. It pays out only after both policyholders have passed away. Its primary use is in inheritance tax (IHT) planning, providing a lump sum to the estate to cover the tax bill, ensuring beneficiaries receive the full value of the inheritance.

For the rest of this article, when we refer to 'joint life insurance', we'll primarily be discussing the common 'first death' variety.

What is Individual Life Insurance?

Individual (or 'single') life insurance for a couple simply means that each partner takes out their own, separate policy.

• You have two policies.
• You have two premiums (though they can often be paid via a single direct debit).
• Each policy is completely independent of the other.

If one partner passes away, their policy pays out to their nominated beneficiary (usually the surviving partner). The surviving partner's own policy remains completely untouched and continues to provide cover for them until it expires or they pass away. This means there is the potential for two separate payouts over time.

At a Glance: Joint vs. Individual Policies

To make the comparison clearer, here’s a simple table highlighting the fundamental differences:

The choice isn't just about cost; it's about the level and duration of security you want to provide for your family.

The Pros and Cons: A Deeper Dive

The decision between joint and individual policies involves a trade-off between immediate cost and long-term security. Let's explore the advantages and disadvantages of each in more detail.

Advantages of Joint Life Insurance

• Cost-Effectiveness: This is the main appeal. A joint policy is almost always cheaper than two equivalent single policies. Insurers price it this way because their risk is lower; they only ever have to make one payment. For couples on a tight budget, this saving can make cover more accessible.
• Simplicity: One application form, one medical disclosure process, and one monthly payment. It’s administratively simpler to set up and manage, which many couples find appealing.

Disadvantages of Joint Life Insurance

• The Single Payout Problem: This is the most significant drawback. Once the policy pays out on the first death, the cover ceases. The surviving partner is then left without life insurance. They would need to apply for a new policy at an older age, and potentially with new health conditions, which could make it significantly more expensive or even impossible to get.
• Relationship Breakdowns: What happens if you separate or divorce? A joint policy can be a financial tie that is difficult to untangle. While you can cancel it, you can't easily split it into two single policies. Some modern policies include a 'separation option' allowing you to split the cover within a certain timeframe after a separation, but this isn't standard and may have conditions.
• One Size Fits All: Couples often have different needs. One partner might be a high earner needing a large amount of cover, while the other might need less. A joint policy applies the same cover amount to both, which may not be optimal. Similarly, if one partner is a smoker or has a health condition, it will increase the premium for the entire joint policy.

Advantages of Individual Life Insurance

• Potential for Two Payouts: This is the key benefit. A payout occurs upon the first death, providing immediate financial support. The surviving partner then retains their own policy, which can later provide a second payout for children or other dependents, or to cover funeral costs and leave a legacy.
• Future-Proofing for the Survivor: The surviving partner doesn't have to worry about finding new cover. This is invaluable, as their health may have declined in the intervening years, making new insurance costly. They have a guaranteed safety net in place.
• Complete Flexibility: Each policy can be tailored to the individual. You can choose different cover amounts and different policy terms. For example, the higher earner could have a larger amount of cover, or one partner could have a policy that runs until retirement while the other runs until the children are 25.
• Simplicity on Separation: If the relationship ends, there's no financial mess to untangle. Each person simply keeps their own policy and can change the beneficiary if they wish.

Disadvantages of Individual Life Insurance

• Higher Premiums: Two separate policies will almost always cost more per month than one joint policy. While the difference might only be a few pounds per month, especially for young, healthy couples, it is a factor to consider in your budget.
• More Administration (Initially): You will need to complete two applications. However, a good adviser can streamline this process, often handling both simultaneously.

Which Type of Policy is Right for You? Scenarios & Examples

The "best" life insurance for you depends entirely on your personal circumstances, financial commitments, and future goals. Let's walk through some common scenarios to see which option might be more suitable.

Scenario 1: The First-Time Buyers

• The Couple: Liam (29) and Chloe (27), non-smokers in good health. They've just bought their first house with a £275,000 repayment mortgage over 30 years. Their budget is tight after saving for the deposit and legal fees.
• Their Priority: To ensure the mortgage is paid off if one of them dies, so the other isn't forced to sell their home.
• Likely Solution: A joint 'first death' decreasing term assurance policy.
  • Why? The cover amount decreases over time, roughly in line with their repayment mortgage balance. This makes it the most affordable type of cover. As their primary concern is the mortgage debt, a single payout that clears it is sufficient for their immediate needs. The cost saving of a joint policy makes it a practical choice for their tight budget.

Scenario 2: The Young Family

• The Couple: Mark (38) and Sarah (36) are married with two children, aged 5 and 8. They have a £200,000 mortgage. Mark is the main earner, while Sarah works part-time.
• Their Priority: To not only clear the mortgage but also provide a financial cushion to replace the lost income and support the children through to financial independence.
• Likely Solution: Two individual level term assurance policies.
  • Why? If Mark were to pass away, his policy would pay out. Sarah could use this to clear the mortgage and replace his income for a number of years. Crucially, her own policy would remain in place. Should she then pass away before the children are adults, her policy would pay out a second lump sum, ensuring their financial future is secure with a designated guardian. A joint policy would leave the children financially vulnerable after the first parent's death.

Scenario 3: The Business Owners

• The Couple: David (45) and Emily (43) are both directors of their own successful marketing company. Their personal and business finances are intertwined. They have a large mortgage and two teenage children.
• Their Priority: To protect both their family and their business.
• Likely Solution: A sophisticated mix of personal and business protection. They would likely opt for two individual life and critical illness policies for their family's needs. In addition, they should strongly consider Relevant Life Cover paid for by the business. This acts as a death-in-service benefit for them as directors, but the premiums are an allowable business expense, making it highly tax-efficient. This provides an extra layer of protection for their family completely separate from their personal policies.

Scenario 4: The High-Net-Worth Couple

• The Couple: Robert (66) and Susan (64) are retired. Their home is paid off, and they have significant investments and assets totalling over £2.5 million.
• Their Priority: To pass on as much of their wealth as possible to their children and grandchildren, without it being significantly reduced by a 40% Inheritance Tax (IHT) bill.
• Likely Solution: A joint 'second death' whole of life policy, written in trust.
  • Why? The policy pays out after the second partner dies, which is precisely when the IHT bill becomes due. By writing the policy in trust, the payout goes directly to the beneficiaries and doesn't form part of the estate, so it isn't taxed. This provides the exact funds needed to pay the tax man, preserving the value of the estate for their loved ones.

Beyond Life Insurance: A Complete Financial Safety Net

Life insurance is vital, but it only covers death. A well-rounded financial protection plan for a couple should consider the risk of illness and injury too. According to the Association of British Insurers (ABI), UK insurers paid out over £7 billion in protection claims in 2023, with the majority being for life, critical illness, and income protection. This shows just how crucial this broader safety net is.

Critical Illness Cover (CIC)

This pays out a tax-free lump sum if you are diagnosed with one of a specific list of serious medical conditions, such as some types of cancer, heart attack, or stroke.

• Why it's vital for couples: Surviving a serious illness can be financially crippling. The payout can be used to cover medical bills, make home adaptations, or replace income while one partner takes time off to recover or act as a carer.
• Joint vs. Single CIC: Similar to life insurance, joint CIC policies usually only pay out once. If one partner claims for a critical illness, the policy pays out and then ends, leaving the other partner with no cover. For this reason, many couples opt for two separate CIC policies for more comprehensive protection.

Income Protection (IP)

Often considered the foundation of any protection plan, Income Protection pays a regular monthly income if you are unable to work due to any illness or injury.

• Why it's vital for couples: Most households rely on at least one, if not two, incomes to function. If one of you is unable to work for an extended period, how would you pay the mortgage, bills, and food costs? Statutory Sick Pay is just £116.75 per week (as of 2024/25), which is rarely enough to survive on.
• IP is always individual: Unlike life insurance, income protection policies are always taken out on an individual basis, as they are tailored to your specific occupation and salary.

Family Income Benefit (FIB)

This is a type of life insurance that works differently from a standard lump-sum policy. Instead of one large payment, it pays out a regular, tax-free monthly or annual income to your family, from the point of claim until the end of the policy term.

• Why it can be great for couples: It can feel more manageable for the surviving partner, as it replaces the lost monthly salary rather than requiring them to manage a large lump sum. It's an excellent way to cover ongoing family living costs and can often be more affordable than an equivalent level term policy.

Special Considerations for Business Owners & The Self-Employed

If you or your partner are self-employed, a freelancer, or a company director, you lack the safety net of employee benefits like sick pay or death-in-service. This makes personal protection absolutely essential.

For the Self-Employed and Freelancers

Your income is your lifeline. If you can't work, your income stops.

• Income Protection is non-negotiable. It's your replacement salary and should be the first protection policy you consider.
• Life and Critical Illness Cover are equally important to protect your family and cover business liabilities should the worst happen to you.

For Company Directors

As a director of your own limited company, you have access to uniquely tax-efficient ways of arranging protection, paid for by your business.

• Relevant Life Insurance: This is a company-paid death-in-service policy for an employee (including you, the director). The premiums are typically considered an allowable business expense by HMRC, and it doesn't count towards your annual pension allowance. The benefit is paid tax-free to your family via a trust. It’s a huge tax-saving compared to paying for personal life insurance from your post-tax income.
• Executive Income Protection: This is an income protection policy owned and paid for by your company. Again, the premiums are usually a tax-deductible business expense. The benefit is paid to the company, which then distributes it to you via PAYE, providing a continuous income stream.
• Key Person Insurance: This protects the business, not your family. It's a policy taken out on a key individual (like a director or top salesperson) whose death or critical illness would cause a significant financial loss to the company. The payout provides the business with the funds to recruit a replacement or manage the financial disruption.

Navigating these business protection options can be complex. Working with a specialist broker like WeCovr can help you structure these policies in the most tax-efficient way to protect both your business and your family.

How to Get the Best Life Insurance for Couples in 2025

Follow these steps to ensure you get the right cover at the best price.

Step 1: Assess Your Needs

Don't just guess a number. A rough calculation can be: (Mortgage + Other Debts + [Annual Family Expenses x Number of Years Needed]) - Existing Savings/Investments = Your Cover Amount

Think about the term too. Do you want cover until the mortgage is cleared? Until your youngest child is 25? Or for your whole life?

Step 2: Understand the Cost Factors

Your premiums are based on the level of risk you present to the insurer. Key factors include:

Be completely honest on your application. Non-disclosure can lead to your policy being voided when your family needs it most.

Step 3: The Power of 'Writing in Trust'

This is one of the most important yet overlooked aspects of life insurance. A trust is a simple legal arrangement that separates your life insurance payout from your estate.

Why is it crucial?

1. Avoids Probate: The payout goes directly to your beneficiaries (e.g., your partner or children) without waiting for the lengthy legal process of probate, which can take months. This means they get the money quickly when they need it most.
2. Avoids Inheritance Tax: For most people, a policy written in trust is not considered part of your estate and is therefore not subject to a potential 40% IHT bill.

Most insurers provide the trust forms for free, and a good adviser will help you complete them correctly. It’s a simple piece of paperwork that can save your family thousands of pounds and a great deal of stress.

Step 4: Compare the Market with an Expert Broker

You could go directly to an insurer, but you would only see their products. You could use a comparison site, but you won't get advice on which policy is truly right for you or help with complex applications.

An independent broker offers the best of both worlds. Here at WeCovr, we specialise in helping couples and families navigate these crucial decisions. We compare plans from all the major UK insurers to find the right cover for your specific needs and budget. Our expert advisers can guide you through the pros and cons of joint vs. single policies and help you put your policy into trust.

We also believe in supporting our clients' long-term health. That's why, in addition to finding you the best protection, we provide all our customers with complimentary access to our AI-powered calorie tracking app, CalorieHero. We believe that going above and beyond in supporting your wellness journey is part of our commitment to you.

Step 5: Review Your Cover Regularly

Life insurance is not a 'set and forget' product. Your needs will change. Plan to review your cover every few years, or after any major life event:

• Getting married or entering a civil partnership
• Having a baby
• Moving to a bigger house with a larger mortgage
• Getting a significant pay rise
• Changing jobs or starting a business

A quick review ensures your cover remains adequate for your family's needs.

The Final Verdict: Joint or Individual?

As we've seen, there is no single "best" answer.

• A joint policy is a valid, cost-effective tool, primarily for covering a specific joint liability like a mortgage, especially when budget is the main constraint.
• Two individual policies offer vastly superior flexibility and more comprehensive, long-term protection for your family, providing a double payout potential and future-proofing the surviving partner.

For a few extra pounds a month, many couples find the peace of mind offered by two separate policies is well worth the investment. The ultimate decision rests on your priorities: minimising today's cost versus maximising tomorrow's security.

The most important step is to take action. Talking about death is never easy, but planning for it is a responsible and loving thing to do. An open conversation with your partner, guided by expert advice, will ensure you build a financial fortress around the future you're creating together.