Joint vs Separate CIC: Key Differences
| Feature | Joint CIC | Separate CIC |
|---|---|---|
| Cost | Cheaper (one policy) | More expensive (two policies) |
| Number of payouts | One payout only (first claim) | Both partners can claim |
| After a claim | Policy ends for both | Surviving partner keeps cover |
| Flexibility | Tied together | Independent, portable |
| Divorce | Complicated to split | No impact |
Why We Recommend Separate Policies
For most couples, separate individual CIC policies are better value despite costing slightly more. Here is why:
- Double the protection: If one partner claims, the other keeps their cover. With joint CIC, one claim ends the policy for both
- Statistically likely: The chance of at least one partner needing to claim is surprisingly high. Joint CIC only covers the first event
- Divorce-proof: If you separate, individual policies carry on unaffected
- Tailored cover: Each partner can choose different cover amounts based on their income and responsibilities
The maths: Joint CIC is typically 10–20% cheaper than two separate policies. But for that small saving, you lose the ability for both partners to claim. If one partner is diagnosed with cancer and claims, the other has no cover left – at an age where getting a new policy will be expensive and health issues may prevent acceptance.
When Joint CIC Makes Sense
Joint CIC may be appropriate in limited situations:
- Budget is extremely tight and some cover is better than none
- You only need cover for a specific shared liability (e.g., mortgage)
- One partner is uninsurable due to health and cannot get individual cover
Our Recommendation
Take out two separate individual CIC policies. The small additional cost is far outweighed by the benefit of both partners having independent, portable cover that survives a claim by either party.
Frequently Asked Questions
Separate is almost always better. Joint pays out once only. Separate: both can claim. Extra cost: ~10–20%.
Yes, 10–20% cheaper. But only pays once then ends. Poor value compared to separate cover.