It is a fact that all happily married couples want the best for their children. If you are a married person contemplating whether you should either get a single life insurance policy or a joint life insurance policy for your beneficiaries, we strongly advise you to consider the following pros and cons of joint life insurance. That way, you can secure your family future and take the right decisions.
Cheaper than single life insurance: Even though the difference is quite low, it is cheaper for couples to buy a joint life insurance policy than to purchase two individual life insurance policies.
Flexible: The policyholders can decide to either sign up for a first-to-die or a second-to-die policy. They also have the leverage to invest their cash values in any investment vehicles they want, if they prefer a permanent joint life insurance policy.
Tax-deferred: The cash value will not be taxed unless the policyholders want to withdraw or borrow money from it.
High premium: The amount of premium which couples will pay is quite high since the policy is for more than one person. Also important is that the premium depends on the age and health status of the couples. If one of the couples is not healthy, there are chances that they would pay more premium over the lifetime of the policy to get the desired coverage.
Complicated: Joint life insurance is fraught with a lot of complications, especially when there is a possibility for divorce.