What to Know About Joint Life Insurance

Should You Consider Joint Life Insurance?


For couples and partners looking to improve their financial planning, joint life insurance is an option. A joint life insurance policy is an alternative for couples who would like to provide for each other if one of them passes away. Buying such a policy can be a straightforward, affordable, and practical way to meet the needs of both individuals. Before you buy, it’s important to understand what this coverage entails.


First to die coverage

A first to die life insurance policy pays out the death benefit solely on the first named insured that dies. For example, if a husband and wife were covered under this kind of insurance policy, using a death benefit of $500,000 and the husband were to pass away first, the spouse would collect the death benefit of $500,000. The insurance policy would then be exhausted. This is a great policy for those who have a mortgage as the death benefit can be used to pay the mortgage balance, allowing the insured to live mortgage-free in the family home.


Second to die coverage

Also called survivorship policies, this coverage pays the death benefit on the second to die. In the scenario previously mentioned where the husband died first, the insurance policy would not have paid out until the spouse died, leaving the death benefit to their particular named beneficiary.

Because the death benefit is not paid out until the last insured passes away, the life expectancy for the policy is based on a lengthier life expectancy that allows for a lower cost.


Do you have questions about finding the right, affordable life insurance policy? Talk to the team at Kneller Agency today to get started!

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