“To understand this principle you first need to be aware of the choices open to you. Say for example you are a couple who need life insurance for whatever reason. Most people in this position would opt for a joint life first death life insurance plan. Joint life first death is simple in so much as the benefit is paid once in the event of the first person dying. Once this event has taken place the plan ceases and there is no cover for the surviving individual.

One other reason why two single life plans can be far more beneficial to the one joint life first death plan is down to how relationships and marriages work, or not, as the case may be. It is said that 40% of marriages will end in divorce and a significantly higher percentage of relationships will end in separation. In these situations assets have to be split in order to pass equal benefit to each partner. Life insurance plans are in most cases, if not all, impossible to separate. So if you have to single life plans this problem does not present itself as each life assured walks away with their own plan in tact.”