When it comes to buying life insurance, there is no shortage of options. Between the type of policy, amount of coverage, and company you choose, you’ll probably find an option that suits you.
While you’re thinking about what type of policy to purchase, you might want to consider what’s known as a joint life insurance policy, especially if you’re recently married or have a shared financial interest with someone else.
Most joint policies that companies offer are universal life insurance, though some insurers offer term or whole joint life insurance policies.
Like its name implies, a joint life insurance policy is a policy for two people. According to SmartAsset, two people with “insurable interest” in each other, like spouses, co-habitatating couples, or business partners, can purchase a joint life insurance policy, and pay one monthly premium to receive coverage under a single policy and receive one payout.
1 SmartAsset also tells us that joint life insurance policies come in two kinds: “first to die” and “last to die” – “first to die” life insurance is similar to individual policies, in that they pay the surviving partner upon the first partner’s death, while “last to die” pays after the second person dies (this payout usually goes to the couple’s children).
If you’re wondering if it’s possible to purchase a term joint life insurance policy, you do have some choices. According to ValuePenguin, most joint policies that companies offer are universal life insurance, though some insurers offer term or whole joint life insurance policies.2 ValuePenguin also notes that “if you only need financial coverage for a particular period of time, you would probably be better served buying a term life insurance policy with an additional insured rider.”
When it comes to the length of time you’d need a joint life insurance policy and whether you’d prefer a “first to die” or “last to die” policy, you have options.
If you think a joint life insurance policy might be right for you and your spouse or partner, consult a financial advisor. If you have questions about a joint life insurance policy, contact an independent broker or a licensed insurance agent.