The Basics of Joint Life Policies

When it comes to life insurance, there are loads of options. One popular type of policy for two or more people is a Joint Life policy.

Joint Life policies are most common with married couples and business partners. They provide peace of mind by ensuring that either party will see a financial cushion should something happen to the other individual.

What Types of Joint Life Policies Exist?

Joint Life Policies can be divided into two types: So-called “first to die” policies and so-called “second to die” policies.

First to die policies are paid out when the first insured person passes on. Some people prefer this option because it can help not only pay funeral and burial expenses, but it can be used by a spouse to handle car and mortgage payments or children’s college costs. In addition, business partners often go for this type of coverage because the money can be used to buy out the deceased partner’s shares or pay for the general costs of running the business after either party passes on.

A second to die policy is also known as a survivorship policy. The payout occurs when the second person dies. It is often used when parents want to provide an inheritance to children. Surviving family members can use the money to pay off mortgages or other loans.

Like other types of insurance policies, Joint Life policies often come in Term or Whole Life versions.

Term life insurance provides coverage at a fixed rate of payments over a specific period of time or term. The rates vary depending on the age of the individuals.

Whole life insurance is a policy in which the premium stays the same for the whole length of the policy. It includes a loan value that builds over time.

Whether you are considering Joint Life Insurance or not, finding the right policy can be an overwhelming process. Finding the right agent, however, can make the decision a cinch.

Lesley Reuben writes for Life Insurance 2.0. To learn more or to compare life insurance quotes, compare term life insurance, or get an instant life insurance quote, visit

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