What is Joint Life Insurance

Joint life insurance is a type of a life insurance policy designed for more than one person. Policyholders of joint life insurance policy are mostly couples who depend on each other’s income to meet the family needs. It is also for individuals who want lifetime coverage. Even though this type of life insurance can be in the form of term life insurance, most joint life insurance policies are either universal or whole life insurance. That is, couples can borrow money, as well as use the money, from their cash value to pay their premium.

How joint life insurance works

The death benefit of joint life insurance is based on whether policyholders prefer a first-to-die or a second-to-die policy. First-to-die policy means that the family or beneficiaries will receive the death benefit after the demise of one of the couples. On the other, the second-to-die policy allows the beneficiaries to get the death benefit when the couples are no more. These two policies assume that the couples would not divorce. Nevertheless, the insured can decide to include a divorce clause or rider, which would help them to split the joint life insurance policy into a single life insurance policy if there is a divorce.

For more information about joint life insurance, we advise you to read the pros and cons of joint life insurance or consult your life insurance agent.