With both spouses generally supporting the family, the need for life insurance to pay the bills should one die is imperitive. Most couples opt for separate whole or term life insurance policies. However, there is a different and attractive way to insure couples many are not aware of. Life Insurance Joint policies are an innovative way to have the insurance coverage your family needs.
What are Life Insurance Joint policies?
Also called a "First to Die" policy, it is a joint policy which covers both partners. In the event one dies, the other receives a lump sum to pay for child care, a mortgage or life expenses.
What are the advantages of Life Insurance Joint policies?
- Lower premiums than paying for two separate policies.
- Easier to obtain in the event one of the applicants has a health issue.
- Life Insurance Joint policies can be term or whole life.
- Loans are available against the whole life policy.
What are the disadvantages of a Joint Life Insurance policy?
- The policies are difficult to change the face value or premiums once in force.
- Premiums are calculated by age; the younger pays more than the older applicant.
- Many life insurance companies do not offer life insurance joint as they make less money than on individual policies.
- The survivor may need to have additional insurance as the policy is paid out to the first to die.
