Couples looking to reduce life insurance costs may want to explore the possibilities of a joint term-life policy.
A joint policy is a great way to make sure your family is covered should either partner die prematurely and will cost less in premiums than two individual policies. A joint first-to-die policy, for example, might be 10% to 20% lower in premiums than two individual term-life insurance policies.
Because the insurance benefits are paid when the first spouse dies, joint first-to-die policies are best for those who will be financially comfortable after the death of the first spouse, without needing continued life insurance coverage.
Since the surviving spouse will be left uninsured, it’s essential that your joint life policy provide a sufficient payout to meet that spouse’s financial needs well into the future and protect any dependent children in case that spouse also dies prematurely.
Divorce is a disadvantage of joint policies because they can’t be split; two individual policies are easier to deal with.
Joint policies are attractive for couples who have shared financial obligations, such as a mortgage or the expenses of child-rearing. Let’s explore whether a joint term-life policy is a good choice for meeting your family’s life insurance needs.
Larry Kleinmintz, R.H.U., T.O.T., M.D.R.T.
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