joint life insurance Archives

Life Insurance for Dual-Income Families

In many cases, people think that only the breadwinner of a family needs to have a life insurance policy, since they bring in most of the family’s income, and it is their income that would need to be replaced. But what about families in which both partners make an equal income? Do both spouses need life insurance, and if so, which policy is best for dual-income families?

Why Dual-Income Families Should Have Life Insurance

If you and your partner both have an income, you both equally contribute to paying the bills and taking care of the debts that accumulate in your household. Your family is accustomed to living with both incomes, and losing one could seriously impact your family’s financial stability. When both income-providing partners have life insurance, this can help pay for funeral costs and offset the lost income from either spouse.

Whether you are the breadwinner of the family or not, it’s important to have a life insurance policy for: hundred dollar bills

Financial stability- A policy will ensure that your spouse or children will not have to deal with outstanding debt or bills, or with worrying about mortgage payments on their own without your income to balance it out.
Quality of life- Even if your spouse has an income, they might have to work more to maintain your family’s current lifestyle. They will be dealing with emotional and psychological stress alongside added bills such as childcare and more, which can add up.

What Type Of Life Insurance Should You Get?

When considering what type of policy both of you should get, one of the most important things to consider is whether you should get one policy together or separate policies. Consider the following options:

Joint Life Insurance

You do have the option to get separate policies, but you also have the option to get a policy that covers two people, known as joint life insurance. Joint life insurance is a type of universal life insurance, meaning that it is permanent life insurance, and so 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.

If both you and your partner need the same level of coverage, it may be less expensive to buy a single joint policy with the face value (benefit amount) you’re looking for, compared to two individual policies with the same face value. But you should be aware that, depending on the type of policy, once one policy holder passes away, and a claim is paid, the surviving partner will have to get a new policy to cover them.

Individual Life Insurance

Individual life insurance can be better suited to a couple that has a lot of financial needs, such as providing protection for young children or covering ongoing lifestyle expenses for the family. Another benefit is that individual insurance allows coverage to continue for surviving spouses, even if one of the spouses passes away and a claim is paid.

Individual policies are also a better option if you want coverage that is customized for each of you, such as different benefit amounts or terms of coverage. But it is important to note that individual life insurance policies will have slightly higher premiums than a joint policy.

How Much Coverage Should You Get?

Once you’ve thought about what type of policy you and your spouse should get, you’ll have to think about the amount of coverage you should have. When looking for a policy that will give your family enough coverage, you should make sure the benefit amount is at least 10 times your annual income. In some cases, it might be appropriate to add an extra 15 to 20% just in case there are any extra death-related expenses and financial obligations that your spouse would have to take on, such as a mortgage, car payments, utilities, childcare, and more.

Need Help?

There are many great affordable life insurance options to choose from that will provide enough money for your family, for a low monthly price. The best way to find the right life insurance policy for you and your specific needs is by working with an agent who specializes in life insurance. We have provided the top life insurance companies in the nation below; each offers hassle-free assistance and the most competitive rates. Always check multiple sites to make sure 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 life insurance rates today.

How Does Life Insurance Work During a Divorce?

A divorce is one of the hardest things you can go through in life. On top of dealing with the loss of your love and partnership, you also have to deal with splitting everything you have built together between the two of you. When sorting all of these things out, one of the things you will have to consider is your life insurance policy: what exactly happens to it when you get divorced? Will you need to purchase a new policy?

Is Life Insurance Considered an Asset?

illustration of money — *Life insurance is not considered an asset in a will.*

When going through a divorce, you and your ex will most likely have to split your assets in half between the two of you. An asset is considered anything of monetary value, such as cash, real estate, and any other valuables that you own jointly. Life insurance is considered an asset in some cases, depending on what type of policy it is.

Term life, which covers you for a specific period of time, does not have cash value, so it is not considered an asset. But permanent life insurance, which is a life-long policy with a cash value that grows over time, can be considered an asset because of that cash value. So, if you have a permanent life insurance policy, it might be included in your list of assets, and you’ll have to split the cash value.

What If You Have Joint Life Insurance?

Joint life insurance covers two people for the price of one, which is why it is popular amongst married couples. If you did choose to buy life insurance jointly with your ex-spouse, you will have to consider dividing the policy with your ex-spouse, since joint life insurance policies are typically permanent life insurance policies. Speak to your life insurance company and ask for information on how to split the policy if you are interested in keeping it.

Should You Remove Your Spouse as Your Beneficiary?

If your ex-spouse is named as the beneficiary of your life insurance policy, you can change your beneficiary to someone else without any problems if that is what you wish to do. All you have to do is contact your life insurance company and fill out a form to change the beneficiary. But if you owe alimony or child support, you may be ordered to keep your ex as your beneficiary.

What If You Took a Policy Out on Your Ex?

If you took out a life insurance policy on your ex-spouse and you are named as a beneficiary, you should speak to your attorney about your options. During the divorce proceedings, you might be able to request to keep your life insurance policy in order to protect yourself against loss of alimony or child support payments if something happens to your ex. In some instances, the court can require you to take out a policy on yourself as part of the spousal support agreement.

Looking For A Policy?

Just because you are going through a divorce, doesn’t mean that you shouldn’t have life insurance to protect the financial future of your dependents or business – you might simply have to look for a new policy that better suits your needs. There are many different kinds of life insurance policies to choose from, including whole life insurance, term life insurance, and final expense insurance, so if you’re not sure where to begin, consider using online tools, or speaking with an agent. The right policy for you is out there!

We have provided the top insurance companies that offer life insurance policies below; each can give you hassle-free assistance and the most competitive rates in the nation. Always check multiple sites to make sure 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 life insurance rates today.

The Different Types Of Life Insurance Policies

Shopping for a life insurance policy can feel a little bit overwhelming, because there are so many different types – but the upside is that, with so many options, you’re sure to find a policy that fits your needs and budget. If you’re not sure where to even begin, we have listed multiple types of life insurance policies, how they are different from each other, and what you can expect from each, in order to make the process a little easier and less stressful for you.

Term Life Insurance

illustration of a person walking with 3 arrows in front of him — *Term life insurance is great because it offers you insurance for a duration of time, and there are different options to choose from.*

Term life insurance is one of the most affordable types of life insurance available, but these policies only cover you for a limited period of time (or term), generally anywhere between 5 and 30 years. This type of life insurance is best for people who want coverage for large expenses such as mortgage payments, college tuition, and other debts, usually those who are younger or middle-aged and want to be able to replace income in case of an unexpected death. One of the great things about term life is you can convert your policy to permanent life insurance before it expires without having to go through medical underwriting again.

There are different types of term life insurance policies to choose from including:

Level term life insurance: Your premium stays the same for the entire term
Decreasing term life insurance: Your death benefit decreases as the debt amount decreases
Annual renewable term life insurance: Allows you to renew your term policy for one year at the end of the initial term
Return of Premium life insurance: All premiums paid will be refunded if the policyowner outlives the policy term

Whole Life Insurance

Unlike term life, a whole life insurance policy lasts for the entire life of the policyholder, as long as you keep up with the premiums payments. With this type of policy, premiums will remain the same throughout the life of the policy and cannot be raised for any reason. One of the best things about this type of policy is that it has a cash value component, meaning your policy will build tax-deferred cash over time at a guaranteed rate of interest.

Whole life insurance is best for people who want a longer policy with a cash value that they can borrow from. Be aware that you must undergo a medical exam to qualify for a whole life policy, and that these policies are more expensive than term life policies.

Universal Life Insurance

coins in a row growing, with the last one with a branch on top of the stack — *Universal life insurance has a cash value that grows over time.*

Universal life is similar to whole life insurance in that it is also a type of permanent life insurance with a cash value that grows over time. This type of policy will not only provide you with lifetime coverage, but the premiums are flexible, meaning that you can modify your monthly premium when needed, as well as increase or decrease your death benefit to accommodate different life events.

Premiums for this type of life insurance policy are generally higher than those for term life, because of the above features. It is best for people who prefer affordable permanent life insurance and want the ability to accumulate cash over time. With this type of policy you will need to undergo a medical exam, as well.

Variable Life Insurance

Variable life is a type of universal life insurance that also builds up cash value over time, but instead of earning a fixed rate of interest determined by your insurance company, the interest it earns is based on the performance of an investment account. You can withdraw cash from the policy through policy loans that are considered tax-exempt, but you can lose your cash value if the market performs poorly. This type of life insurance is best for people who are looking for permanent life insurance that builds up cash that can be used as a tax-exempt income. Premiums are based on your medical history, so you will have to undergo a medical exam.

Simplified Issue Life Insurance

With this kind of life insurance policy, you do not have to undergo a medical exam, meaning policies will typically be more expensive because the insurer is taking a risk by insuring you without knowledge of your medical history. On the other hand, though, you don’t have to worry about being approved, and you will be able to get a policy in a matter of days as opposed to weeks or months. This type of policy is best for people who need coverage quickly, as well as for those who have pre-existing medical conditions and are afraid they might get denied any other type of coverage.

Guaranteed Issue Life Insurance

Like simplified issue life insurance, guaranteed issue life insurance is a whole life policy that will provide insurance without requiring a medical exam. As long as you are within the eligible age requirements, you can purchase one of these policies, but it will cost more than traditional life insurance because of the risk the insurer is taking, and will generally only provide $25,000 to $30,000 in coverage.

hourglass with blue sand in it dripping down — *Guaranteed life insurance has a 2 year waiting period before the death benefit is paid.*

There is one other caveat to this type of policy: there is a two-year waiting period before the full death benefit is payable to the beneficiary. This means that, if the policy owner dies within 2 years, the insurance company will only pay out 110% of premiums paid (as long as the insured dies from natural causes), instead of the agreed-upon death benefit. Guaranteed issue life is best for people who cannot qualify medically for traditional life insurance, but would like the opportunity to cover their loved ones when they are gone.

Final Expense Insurance

Final expense insurance is generally bought to cover funeral expenses, burial expenses, and any other medical debts you may have. There is no medical exam required, and it is relatively affordable, but the death benefits are usually capped at $35,000.

Joint Life Insurance

Joint life insurance will provide coverage for you and your spouse. You can choose from a universal or whole life policy, but the death benefit is usually not paid out until both policy holders have passed away. A lot of couples will choose this option because it is cheaper than purchasing two separate policies, and the underwriting and rates are based on the younger and healthier partner.

Your family has financial obligations that will not go away when you are gone; they will need your help more than ever with their expenses, and the last thing you want them to worry about is money while they are grieving. There are many great affordable life insurance options to choose from that will provide enough money for your family, for a low monthly price. The best way to find the right life insurance policy for you and your specific needs is by working with an agent who specializes in life insurance. We have provided the top life insurance companies in the nation below; each offers hassle-free assistance and the most competitive rates. Always check multiple sites to make sure 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 life insurance rates today.

Before Getting Married, Discuss Finances & Life Insurance!

Congrats on your engagement! You’re probably busy planning and making arrangements for the big day, but during this fun (and stressful!) time, don’t forget that there is something very important you need to discuss before getting married and sharing your life together: finances. Before making the commitment to forever, you should be clear about what debts and assets you have; once you’ve done this, there’s one more very important thing to talk about, and that’s life insurance. We get it, it’s not the most romantic subject to talk about before tying the knot, but you definitely need to discuss how much life insurance you’ll need to ensure your family’s future financial stability. To make things easier, consider the following so you can figure out what kind of life insurance you’ll both need.

Debts You’re Bringing To The Marriage

illustration of a woman holding a large bag with a money symbol on her shoulders — *Before getting married, it is important to discuss any debts, and other finances you have with your fiancé.*

You’d probably agree that being open and honest with your partner is very important, right? Well, that includes being open with your soon-to-be spouse about any key financial information; in fact, roughly 42% of couples say transparency about finances is key to a healthy relationship. This is especially true when it comes to any debts that you will be bringing into the marriage, including credit card debt, student loans, or car payments.

If you both have an understanding of what debt you’ll be taking on before getting into the marriage, you’ll be better equipped to come up with a plan to tackle that debt; you’ll also know how much life insurance coverage you’ll both need to keep you financially protected in the future. Remember, if one of you were to pass away, the other could be responsible for some of those debts, so take them into consideration when choosing your policy. You will want to make sure that in the event of your passing, you can still help cover these debts and provide enough for other expenses.

Are You Planning On Having Children?

Do you want to have children someday? Does your partner? If the answer is yes, a lot of other questions will follow, like: Will you be buying a house one day as your family grows? Would you be able to continue taking care of your children on your own if your spouse passed away? Do you plan on helping your children with college expenses? You will need to discuss these questions and figure out how much life insurance coverage will be enough to cover any or all of the scenarios raised above.

Evaluate Your Disability Insurance

blue and white disability sign — *If your job does not cover disability in case you get injured and unable to work, you can get a disability rider with life insurance.*

In the event that you or your spouse got hurt or disabled, would the disability insurance offered through your job cover your bills? Odds are it would not; in fact, more than half of working Americans could barely afford their bills past the first month of being unable to work. You will both want to be financially protected if the unexpected happens and you are no longer able to provide an income; life insurance disability riders can help you or your spouse keep paying the bills by covering any lost income.

What Kind Of Life Insurance Policy Should You Get?

You have options when choosing a life insurance policy/policies to cover your new family. One thing to consider is whether you plan on having your own life insurance policies or a joint life insurance policy; joint life insurance policies cover both of you, and are generally less expensive than purchasing two policies. If you decide on a joint policy, you have two options: a first-to-die policy, which provides benefits to your spouse after one of you dies, and a second-to-die policy, which pays out benefits to your family after you both have passed. Be aware that after the first-to-die policy’s benefits are paid out, the policy terminates, meaning the surviving spouse would have to get additional coverage if they want to provide benefits for the rest of your family after they pass.

Individual life insurance policies might be a better fit if you want guaranteed protection for each individual; you might also be able to get higher payout benefits when getting your own life insurance policies. The best way to determine which is the best route is to go over your finances and compare plans. You might find that a term life policy is better for your needs, while your spouse might decide on a permanent life policy. Whatever you both choose, it is important to have life insurance for the unexpected, so that neither of you is left struggling.

Talking about your finances before getting married might not seem fun when you are in love and enjoying the good times, but it is necessary, and avoiding the subject will be detrimental to your relationship in the long run. You need to know how much debt you each have and what your future plans are for taking on more debt, so you can figure out exactly how much life insurance coverage you’ll need to protect your family now and in the future. After having the talk, the next step is determining which life insurance policy will best fit your finances and needs; the best way to do this is by working with an agent who specializes in life insurance. We have provided the top life insurance companies in the nation below; each offers hassle-free assistance and the most competitive rates. Always check multiple sites to make sure 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 life insurance rates today.

Retiring? Don’t Cancel Your Life Insurance Policy!

You’ve worked your whole life to save money to use for your retirement, and to take care of your loved ones. Now that your retirement is finally approaching, you might be wondering: is it enough? In addition to your savings, do you have a pension or retirement benefits through your former employer, or will you be relying on Social Security – and will it be enough to support your spouse if you are no longer able to? What about if you or your spouse needs long-term care? And will there be any money left for your children or grandchildren? If you’re unsure whether you’ll have enough money for all of these scenarios, a life insurance policy could be the answer. So, if you already have one, don’t cancel it now; if you don’t, you can still find an affordable policy – having one is just as important now as it was when your family was young, and here’s why!

Provides Additional Income

If you are one of the lucky ones who will be getting monthly retirement benefits from your employer, you might think that both you and your spouse will be able to live on that money for the rest of your lives, whoever passes away first. But that is not necessarily the case: depending on the type of monthly payout that you chose, your spouse might not continue receiving your retirement income after you die. If you picked the option of a monthly payout based on your life expectancy instead of a “joint and survivor” benefit option, your benefits will only last for as long as you are alive – and most people do not choose the “joint and survivor” option, because it usually means a smaller monthly payout. Life insurance can replace that monthly income, which will help your spouse with the expenses that they relied on your income for.

Covers Debts

Some of your debts do not disappear when you die, especially if your spouse is a co-signer of the debt. If you’re still paying off your house, car, college tuition, or credit card bills, a life insurance policy will ensure that these debts get paid without your spouse or family struggling. A policy will also ensure that your family can afford your funeral expenses, which will cost, on average, $10,000.

Leave A Legacy

Hopefully you’ve got a great pension or retirement plan that is allowing you and your spouse to pay the bills, and still have money to travel and enjoy your retirement. But what about your children and grandchildren after you pass away? With a life insurance policy, you can leave a legacy for your family when you pass.

Cover Your Long-Term Care

older man pushing an older woman in a wheelchair — *Life insurance can help cover your long-term care, if you add specific riders to your policy.*

Life expectancy is rising, and living longer means you or your spouse might end up needing assistance or long-term care at some point in the future. If you have retirement benefits, they can help pay for your long-term care needs, but what about those for your spouse? There are life insurance riders that you can add onto a policy to help both of you with long-term care in your retirement years. Some of these riders include:

Long-term care rider – Helps with expenses including nursing fees and assisted living costs.
Accelerated death benefit rider – Pays out a portion of your death benefit while you are alive if you are being treated for a terminal illness.
Critical illness benefit rider – Provides early access to benefits for treatment of certain illnesses.

Supplementing your retirement benefits with life insurance will help you and your spouse have peace of mind knowing you’ll be covered if you need extra care.

Other Advantages Of Life Insurance

Aside from helping your spouse and loved ones when you are gone, there are other advantages to supplementing your retirement benefits with a life insurance policy. With certain policies you can:

Build up cash value on a tax-deferred basis
Pay for premiums with your cash value
Borrow money from the cash value tax-deferred
Receive tax benefits for estates and trusts for your family

What Kind Of Policy Should You Get?

There are many life insurance policies to choose from; choosing the right one for you depends on your situation, how much coverage you want, and your budget. Some policies to look into include:

A permanent life insurance policy, such as whole life insurance, which offers coverage that will last your whole life, and will accumulate cash over time.
A term life insurance policy, which is cheaper than permanent life insurance, but only covers you for a specific amount of time (10, 20, 30 years). It can be converted into a permanent life insurance policy when the policy ends, but you might have to pay more for the policy if you renew it.
Guaranteed universal life insurance, which is a hybrid of term and permanent life insurance.
Joint life insurance, which will provide your spouse with a death benefit if you choose a first-to-die policy, or your family if you choose a second-to-die policy.
Final expense life insurance, which will provide benefits for the cost of a funeral and any debts you leave behind. The death benefit amount can be anywhere from $5,000 to $25,000.

These are just some of the different types of life insurance policies you can choose from; you should be aware of all of your options before making a decision. The best way to choose a plan that will most benefit you and your family is by working with an agent and comparing plans. To get you started, we have provided the top insurance companies that offer life insurance policies below; each can give you hassle-free assistance and the most competitive rates in the nation. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Your retirement benefits will only go so far; by supplementing them with a life insurance policy, you can make sure that you will continue to provide for your loved ones even when you are gone, or that your long-term care needs are met. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.

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.