What is the Insurance Joint Life Term Plan

Getting an insurance joint life term policy may be simple, but that may also mean doing a slight DSC_0037bit of legwork to not spend too much. Getting the wrong policy is a mistake that will you would be reminded of for the remainder of the term. If that term is 20 or 30 years, that is a long time to be paying too much.

Joint life term policies can also be called a last to die life insurance policy. They cover both people on the same policy. The first to die will trigger the death benefit which is paid to the survivor. In this way the policy can cover two people and offer some conclusive coverage when you need it most.

If both of the insured passes away then the proceeds will go to the contingent beneficiary. This may be the children, a business, a non profit or whatever you want. Its a good way to get coverage for less that encompasses both people needing to be covered.

When the second person passes away, then the remaining proceeds will go to the beneficiaries.

Benefits

  • When you need to cover two people when both are still working, these policies are cheaper than two separate policies by themselves.
  • Easier to keep track of. One policy, one set of rules.
  • Easier to plan financially
  • very beneficial for dual household income families

If you are part of a dual income family you owe it to yourself to give the insurance joint life term policies a good look. They are simple, effective, and work for a variety of people who need coverage for two people in a household.

Why Haven’t I heard about this type of Policy before?

These policies are cheaper than two separate policies. Therefore the annual premium is a smaller amount. The reason you haven’t heard of them is probably because the agent makes more from selling two policies than from selling you one of these. The more annual premium he sells, the more money he makes. Simple math. But its not the answer you probably wanted to hear right? Well, that’s why we are here. To lay the truth out there so you can decide for yourself.

If your agent has told you about this kind of policy, then he/she likely is looking out for you and not their agent commission. This might be a good indicator you have a good agent. At the very least it says something positive about them.

Summary

For almost all of us who are part of a family where both the husband and wife are working joint life policies make a lot of sense. These are not one size fits all. Your incomes and thus your life insurance needs may vary greatly from mine, but the basic principles are the same.

One policy to cover two people against the uncertainties of death. One policy to protect your loved ones from uncertainty. These are both less expensive and more convenient than two individual policies for many of our clients.