Joint Life Insurance
If you’ve been considering a new joint life insurance policy or you’re thinking about replacing your existing life cover with a different policy, you will have certainly noticed that there are a great many options available these days.
Not only are there more companies offering joint insurance policies than ever, each of these insurers has a full range of different types of life cover on offer.
Joint life cover is just one of many options, but for many people, it may be the right choice for providing their loved ones with financial security and at least some protection from the uncertainties of life.
What Is Joint Life Insurance?
Joint life cover is a type of insurance policy that covers two or more people (though two is the usual number).
The beneficiary or beneficiaries, as the case may be, are generally third parties such as the children of the policyholders, since it is married couples who most commonly purchase joint life insurance policies.
The death benefit associated with a joint life policy is typically paid out upon the first death of one the policyholders, though there are variations on these plans where a benefit is paid to a third party beneficiary after the death of both parties instead.
Even though spouses are usually the policyholders in joint insurance policies, business partners often take out these policies as well.
This is a type of life cover which is well suited to any kind of relationship where there is a high degree of interdependence and one party would be left in a serious predicament due to the death of the other.
Are There Any Drawbacks To Joint Life Insurance
Since they present insurance companies with a much greater chance of having to pay out on a claim, insurers tend to charge considerably higher premiums for these policies.
This leads many consumers to wonder if they would be better off with each party carrying their own life insurance policy or to get a joint policy for the same amount of coverage.
The answer is that it all depends on your situation; one may be less costly than the other, but it all depends on a number of different factors.
Who Should Get Joint Life Cover?
In general, joint insurance is better suited to business partners than to spouses. Typically, spouses will find themselves better prepared by having individual policies, since this can serve as mortgage protection as well as life cover.
Of course, this cover also provides them with insulation against lost wages, which is yet another reason to consider your options carefully before deciding whether or not a joint life policy is right for your situation.
There are a lot of resources consumers can turn to online in order to find the information they need to decide whether an individual or joint insurance policy is the best fit for their needs.
Life insurance is the best way to provide for the needs of your loved ones once you’re no longer around; and when you’re well informed, you’ll be prepared to make a smart decision about the future.