Why You Should Consider Joint Life Insurance

Getting married and setting up a life with your partner is a joyful time, and life insurance might not be at the top of your minds. But it’s an important subject to discuss: after all, you both want to support each other for as long as possible. There are multiple options to consider when looking into life insurance policies, but did you know that you can get coverage for you and your spouse on one life insurance policy? With a joint life insurance policy, you can cover two people, often for less than the price of separate policies!

What Is Joint Life Insurance?

african american hand holding a caucasian hand with rings on the ring fingers
Joint life insurance will cover you and your spouse under one policy, which can be cheaper than two policies.

Joint life insurance is a type of universal life insurance, meaning that it is permanent life insurance and will remain in effect for your whole life. Depending on how your policy is structured, it might build cash value that grows, tax-deferred, over the life of the policy. The unique thing about joint life insurance is that these policies cover two individuals on one plan. It is perfect for couples, because it allows you to provide for your spouse after death. But it is also a great policy for business partners! A joint life insurance policy will give you the financial security to keep your business going in the event that one of you passes. 

The best way to find the right plan for your needs is to shop around and compare plans and prices. As you begin your research, be aware that you will come across two types of policies, first-to-die and second-to-die life insurance. 

First-To-Die Policies

First-to-die life insurance will pay out after the first-named insured of the spouses or partners dies. For example, if you and your spouse are covered under a first-to-die policy, and your spouse passes, you would collect the entirety of the death benefit. After you collect the money, the insurance policy is exhausted, meaning you will no longer have life insurance coverage and must apply for a new policy. You have the option to use the money however you see fit, whether for mortgage payments, expenses that were supported by your spouse, for your growing family, etc. 

Second-To-Die Policies

Also called survivorship policies, second-to-die insurance policies will pay the death benefit after both policyholders die. For example, if you and your spouse have a policy and your spouse dies first, the insurance will not pay out until after you pass as well. Unlike with first-to-die policies, once the first person dies, the second person has to keep paying premiums to keep the policy active. This kind of policy is best for estate planning purposes, as it allows you to leave money behind for dependents. It is also well-suited for business partnerships, if you want to keep the business going after both partners pass.

money tree in a plant pot being watered
Your cash value grows over time with a joint life insurance policy.

Joint Life Insurance Advantages

Joint life insurance is an excellent way to provide coverage for two people at a great price. These plans:

  • Are flexible– They allow you to increase or decrease the amount of your premium payments.
  • Grow over time– Your cash value will continue to grow over time.
  • Are accessible– You have access to cash value in case of an emergency or whenever you need it.
  • Are affordable– These plans are generally cheaper than buying two separate policies.
  • Offer savings– The company will underwrite both of you, and will typically focus on the healthier applicant. This reduces the risk, which means lower premiums.

Joint life insurance is the simplest and most affordable way to provide coverage for you and your spouse or business partner. You will be able to provide for your spouse after your death, or for your dependents or business after both policyholders pass. It is the cheapest yet most effective way to get coverage for two people. 

There are many different life insurance policies to choose from, which is why you have to compare plans to find the best one for your needs. Consider using online tools, or speaking with an agent. We have provided the top insurance companies that offer joint life insurance policies below; each can give you hassle-free assistance and the most competitive rates in the nation. Always check multiple sites to ensure that you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check joint life insurance rates today.

About The Author:
Cassandra Love

With over a decade of helpful content experience Cassandra has dedicated her career to making sure people have access to relevant, easy to understand, and valuable information. After realizing a huge knowledge gap Cassandra spent years researching and working with health insurance companies to create accessible guides and articles to walk anyone through every aspect of the insurance process.

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