Joint Life Insurance
One of the good things about life insurance is that when the different types of insurance were created their associated names made some sense. And it’s the same for Joint Life Insurance – it means exactly what it’s called. It is life insurance that is purchased by two people together. Certainly an interesting idea and its main future is that although two people buy it, it only pays out to the first person to die.
So why would anyone want this kind of insurance? Well here are a few reasons that you may want to consider in order to determine if it’s for you:
- Are you a new homebuyer? If so, then this option is definitely attractive. Purchasing the Joint Life Insurance policy is great as mortgage protection. So what that means is that if you or your spouse dies, then the mortgage can be paid off with the proceeds of the insurance. Or at least your surviving spouse will have money to keep making the mortgage payments and pay off other debts as well.
- Are you a new parent? Children are extremely costly and there is definitely no way raising a child is going to get cheaper anytime soon. So knowing that if one of you passes away while your children are still young, there will be sufficient money that can help take care of childcare or tuition costs is definitely something that makes you breathe a little easier.
- Are you retiring soon? This type of insurance can be a way to supplement your retirement income especially if one of you dies. Having additional money at this stage in your life can be very important when living on a limited set income. Knowing your spouse will be taken care of is truly the best gift you can give yourself.
So whatever your personal situation, if you have another person in your life that you love you do want to make sure that they will be taken care of in the event that something happens to you. And Joint Life Insurance can just make sense. It saves the hassle and expense of having two separate policies and gives the benefit of a payout when it’s most needed.
With this type of policy there are still options as to the amount of coverage you wish to take out, the term, and the amount of the premiums. So you need to consider most importantly who long you want the life of the policy to be. Age, lifestyle, income, and your family situation are all considerations. It still is a good idea to speak to a licensed insurance broker to ensure you are making the right decision – your family’s welfare depends on it.