How Joint-Life Insurance Will Benefit You and Your Family

Life insurance is a necessity for many families. Yet, joint life insurance policies are often overlooked by people who have a need for them. Joint life insurance provides an affordable way to protect both you and your spouse or partner. 

Read on to learn more about how joint life insurance works!

What is joint life insurance?

Joint life insurance is an insurance policy that is purchased by two people. In the event that one partner dies, the joint-life insured individual will receive a death benefit. Joint-life policies usually insure two lives in parallel on the same schedule as opposed to a joint survivorship policy which pays out when both insureds live to the end of their lives.

Typically, joint life insurance is purchased by couples who want to cover both spouses or partners against death for a low rate. These are often less expensive than two individual policies because they combine coverage and have lower administrative costs for the insurer.

Why you need joint life insurance

A joint life insurance policy can pay out a larger sum of money than an individual policy in case both spouses pass away. This is because it covers two lives during their lifetime rather than just one, so benefits are usually larger. Joint-life policies also provide survivors with increased income if they lose their primary breadwinner.

Benefits of purchasing a joint life insurance policy

Some of the highlights of joint life insurance policies are:

• Lower premiums
• A death benefit paid to your partner and their family even if you die first
• Survivor’s benefits for both insureds
• Tax advantages in some cases, such as when one spouse pays all or part of the premium with pre-tax dollars

Types of joint life insurance policies

The two types of joint life insurance policies are: joint first-to-die and joint last-to-die. With joint first-to-die policies, both spouses or partners are insured for the entire length of the policy. If one partner dies, then a death benefit is paid to their spouse and their family. This is the most popular  type of joint policy. 

A joint last-to-die policy only pays out after both of the partners pass away. It is usually cheaper than joint first-to-die and is often purchased to leave a legacy for one’s children.

How to find the best policy for you and your family

Choosing joint life insurance is a complicated process, but there are some basic factors that you should be aware of before making your decision. Perhaps the most important factor to consider is whether or not you have any dependents for whom you want to provide financial protection in the event of an untimely death. If so, then you should include your dependents on the joint life insurance policy.

The next most important factor is deciding how much coverage you want to purchase and what type of coverage best suits your needs. For example, some people like being able to use their joint life insurance balance as a safety net that they can borrow against in different ways if needed. Others prefer the peace of mind that comes from knowing they have a predetermined pool of money that will remain in their joint life insurance account.

Conclusion

In any case, joint life insurance can play an important role in protecting you and your family. 

By now you should have a clearer understanding of the benefits and importance of joint life insurance. It is important for couples to work together in making this decision so they can both get the coverage they need when it matters most. Feel free to contact an insurance advisor, like Dundas Life, and we will help make sure your family has all the protection they deserve!