Joint Term Life InsuranceChoosing The Plan That is Right For YouJoint term life insurance is an inexpensive and simple type of insurance policy. It has a predetermined amount that it will pay out in a lump sum should the insured person dies. There are some joint term life insurance plans that have the added benefit of paying the face value when the insured is diagnosed with a terminal disease during the policy's term. If you stop paying the premiums on your joint term life insurance policy, then your coverage will lapse and it will lose its value. If you are willing to pay the extra amount, then you can get a waiver of your premium. This will pay your premiums for you if for health reasons you are no longer able to work. This type of insurance policy is generally designed to cover two people, usually a husband and wife. What is Joint Term Life Insurance?As you probably know, joint term life insurance gives more than one person, normally two, coverage. There is one type of policy that is known as a second-to-die policy. A joint term life insurance policy is used for estate planning most of the time. Until the surviving spouse dies, there is no estate tax due. This type of policy is usually kept in an irrevocable trust that is kept outside of the estate. The premiums for a second-to-die insurance policy are generally lower than an individual policy. This is mainly because it can take longer for the surviving spouse to die. This is a good policy for couples that have one spouse in bad health and the other is in great health. This is because the underwriting is done on the spouse who is least likely to die first. A joint term life insurance policy is the most affordable group term life insurance since you are covering more than one person under a single plan and you only have one premium to pay. This type of policy will ensure you get your payout on and “either-or-both” basis. Your premium will be based on the length of the term, and whether or not you decide to have it payout on the first or the last death. Who Would Want Joint Term Life Insurance?There are several reasons why a couple might want to think about purchasing a joint term life insurance policy. One of the most common reasons is for mortgage protection. By purchasing a joint term life insurance plan, you are making sure that if you die, then your surviving spouse will be able to keep the mortgage up and maybe pay some other debts off. New parents may also consider buying a joint term life insurance policy. If you have children, then you know how expensive they can be. This type of insurance policy can help you pay for their childcare or their tuition if you are your spouse die before your children are adults. Retirees can purchase a joint term life insurance policy to help add to their retirement plan.
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