Advertise Here


IconAssociations & Institutes
IconBBBEE Consulting and Verification Agencies
IconBusiness Chambers
IconBusiness Process Management
IconBusiness Process Outsourcing
IconCall Centre Outsourcing & Sales
IconConsumer Protection
IconCorporate Governance
IconCredit Bureaus
IconDebit Order Collection Facilities
IconEducation and Training
IconHuman Resources
IconInformation Technology and Software Partners
IconLife Insurance Companies
IconLife Insurance Products
IconOutbound Sales
IconPolicy Administration
IconPolicy Trading
IconRe-insurance Companies
IconRegulatory Authorities
IconSales and Sales Management
IconSocial Grants (Government)
IconSurveys and Research
IconTraining Courses & Workshops
IconWellness Programs
  Subscribe To »

Are joint life policies the way to go for married couples?






Schalk Malan, Chief Executive Officer at BrightRock


Having life insurance cover is definitely something married couples should prioritise, and some think that having a joint life policy means better premiums and less hassle. But there are a few other factors couples must consider before committing to bundled life cover.


To bundle or not to bundle, that is the question

The bundling of life insurance means that both spouses are insured on a single policy. This used to be a common practice in South Africa; however, now that there is no longer a tax benefit attached to it, fewer couples are opting for joint life insurance.


In my view, it’s never a good idea to have a bundled life policy. Although having one policy can mean less initial paperwork and administration, and potentially help with a small saving on the policy administration fee, there are no real advantages to it.


When thinking about any kind of insurance cover, the most important factor should be the needs and circumstances of each individual. Because everyone’s needs are different, having a joint life policy simply cannot give the best cover to both spouses.


If the relationship breaks down, the cover becomes complicated

Another point to consider when thinking about bundling your life cover is what will happen in the case of divorce. Obviously, no couple on the brink of spending their lives together likes to think about the potential demise of their relationship, but this must be taken into account when committing to life cover.


If a couple decides to separate or divorce and they are insured on a single joint life policy, they won’t be able to divide up the policy. This means that if one ex-partner decides not to pay their share of the premium, the policy will probably cease unless the other former spouse takes on the burden of paying the full amount. The person who owns the policy can also decide to withhold policy pay-outs, as well as change the beneficiaries of the policy, without needing the consent of their former partner.


With bundled life cover, one ex-spouse can also affect the amount of cover their former partner will be allowed to purchase after the divorce, as insurers may not be inclined to allow them to add more cover. There may also be decreases in the amount of flexibility, as both spouses’ cover may need to have similar features.


Value for money and sound financial advice are key

When committing to any kind of insurance, I always advise people to make sure that they get as much cover as possible for their premium – value for money needs to be the focus, rather than just the premium or cover amount. Often, a cheaper premium initially could mean that your cover might not meet your needs later on. This is why it’s vital to consult a qualified financial adviser, as he or she can help you understand the impact of choosing a joint life policy versus a single life policy for each spouse.


Source: Lesego, Hill+Knowlton Strategies
« Back to previous page Print this page » |

Breaking News »

The Pandemic, Physical Damage, Business Interruption Losses and Reinsurance

The Pandemic, Physical Damage, Business Interruption Losses and Reinsurance How is your 2000 piece jigsaw puzzle progressing?   Coronavirus and physical damage You may have seen reference ...
Read More »


1Life donates to frontline health workers

1Life has donated R500 000 to Gift of the Givers to assist frontline medical workers fight COVID-19. “Medical workers are at the coalface of the pandemic. It’s because of them – their ...
Read More »


Covid-19: Impact on banks, non-insurance financial institutions & expectations on regulated entities

by Danelle Prinsloo, Lenee Green, Johann Scholtz, Dawid de Villiers, Kent Davis from Webber Wentzel   In response to the Covid-19 emergency, the South African Reserve Bank (Reserve ...
Read More »


Coronavirus: Short-term closure of plants or premises can pose risks for companies

The potential for damage from fire or lack of maintenance can increase in mothballed or idle production facilities and industrial plants. Companies from the automotive, aviation or mechanical engineering ...
Read More »


More News »


Healthcare »


Investment »


Retirement »


Short-term »

Advertise Here
Advertise Here

From The Glossary »



Returning a life insurance policy to the issuing life office for cancellation, prior to its maturity date or the death of the life insured, in return for the payment of its surrender value.
More Definitions »






Contact IG


Media Pack


RSS Feeds

By using this website you agree to the Terms of Use.
Copyright © Insurance Gateway (Pty) Ltd 2004 - 2020. All Rights Reserved.