The search for the right life insurance policy is often tedious – so many plans to choose from and so much to understand. One way to simplify the process is to seek joint life insurance quotes. Joint life insurance insures two people with one policy or, couples life insurance. This type of policy offers two coverage options: first-to-die insurance and second-to-die insurance.
First-to-die insurance coverage insures two people, such as a married couple or business partners, and pays out when one person on the policy dies. A policy like this helps protect the investments of the partnership in the event one of the partners dies. For example, if a spouse dies, the other has enough money for mortgage payments, debts, family needs and medical bills.
First-to-die coverage is often offered as an add-on to an existing policy and may allow for two lives to be covered at a lower cost.
Second-to-die life insurance
Second-to-die policies, also known as survivorship insurance, pay the insurance benefit after both policyholders have died. This type of insurance is generally life insurance for couples who want to leave a large inheritance to heirs or by those whose families may not need extra money following the death of the first insured.
Pros and cons of joint life insurance
- Joint life insurance premiums are often lower than if you were to purchase two separate policies.
- If one individual is healthier than the other, it can make it easier to obtain a comprehensive policy, as the underwriting of this type of policy tends to be more lenient.
- Joint life insurance policies allow you to opt for either permanent life insurance or term life insurance. In some cases, you may also ensure one party on the rider as term life insurance and then convert to permanent coverage later.
- Joint life insurance policies often require the purchase of additional coverage. For example, if you have first-to-die insurance, the survivor may need to purchase an additional policy to ensure dependent children or other similar beneficiaries are protected.
- The availability of joint life insurance is limited and may not be offered by all insurance companies.
- If a significant age or health disparity exists between the two insured parties, the younger, healthier individual may end up paying more for coverage than he or she would under an individual policy.