Joint Life Insurance: What Is It?

Basically, a joint life insurance plan offers insurance coverage for 2 people while paying only a single premium, which puts it in the cheap life insurance class. Single policies offer pay-outs once you face mortality. In case either of you dies, you'll still receive the pay-out that's rightfully yours. You do have a choice between term policy where you can set a certain period to get protected, or a whole policy that will both cover you until one passes away.

Qualifications for Joint Life Insurance

Joint life insurance policies are commonly offered to married couples and other similar arrangements, such as registered civil partners and couples who are living together and have common financial responsibilities such as a mortgage or childcare.Joint life insurance policies also cater for those who are business partners. Tip: This insurance is best for partnerships where both can enjoy financial advantages while being together.

Pros and Cons - Because a single premium covers two people, this is considered comparatively cheap life insurance, especially when compared to the costs of two single policies.Age and health condition of the parties involved is considered in the life insurance quotes.

There are other pros to enjoy.You can choose to take your lump dividends at the end of the term policy, or you may choose to receive them annually.You also have the option of taking a loan against the joint policy, which you can pay back at prevailing interest rates.And if you are in a point where you can't pay the loan back, you're balance can be deducted from your receivables once the joint policy has matured.For death-causing illnesses like heart attack or cancer, you have the option to add a clause which guarantees benefits from it knowing that it entails a stop to the partnership's financial status.

Since this is a policy made to cover two people, departing from the partnership would mean severe penalties given against you.In other words, you may no longer be able to recover the money paid into the joint plan.This type of policy is made for partnerships, thus weigh the outcomes first before going your separate ways.

Complications on the policy happen when both of you dies at the same time.Since only a single pay-out will be given, money may not be enough to sustain the beneficiaries of the pair who died.In the event that one of you dies, the policy then expires.If you're the one who lost a partner, you may already find it difficult to enroll in a cheap policy since you have already aged as compared to when you first got the joint policy.As you age, prepare to face expensive premiums.

Quotes for a joint policy is very much affected by the medical condition of either person.In situations like this, it is wiser to get insured separately.