Should You Consider Getting Joint Life Insurance?
In a couple, you may have joint car insurance and home insurance. Yet, when it comes to life insurance, you may take out separate policies. While this is certainly an option, joint life insurance is a possibility. This type of joint coverage is an option for couples who would like to provide for each other if one of them passes away.
What is joint life insurance?
A joint life insurance policy is a way to cover two individuals on one life insurance policy. The policy provides a level death benefit for two people for only one premium. Both people in the couple can be named as beneficiaries. This type of coverage works and acts just like any other term life insurance policy as it will last a specific number of years and cover the policyholder – in this case, two people.
First to die
When you get joint life insurance coverage, you will need to go over the nitty and gritty details about the possibilities of your death. First to die life insurance policies payout the death benefit solely on the first named insured that dies. For example, if a husband and wife were covered under this kind of coverage and the husband were to pass away first, the wife would collect the death benefit. At that point, the insurance policy would be exhausted.
Second to die
Second to die life insurance policies – also called survivorship policies – will pay the death benefit on the second to die. For example, if the husband died first, the insurance policy would not pay out until the spouse died, leaving the death benefit to their particular named beneficiary or contingent beneficiary, if applicable. Second to die life insurance also offers coverage for two or more people for one premium.
Ready to get started on your life insurance policy? Talk to the professionals at Premier Risk Insurance to find out how you can acquire affordable coverage. We serve Long Island and surrounding cities in New York, and we look forward to hearing from you today.