Joint Term Life Insurance
A joint term life insurance policy provides insurance cover for the lives of two people, often a married couple, for a predetermined period of time. Joint term life insurance can provide peace of mind in knowing that your partner will be provided for in the event of your unexpected death.
Joint term life insurance may also be a suitable for business partners.
What is term life insurance?
Term life insurance provides cover for a fixed period of time, often 10, 15, or 20 years. If you pass away during the fixed period, your beneficiaries will receive an insurance payout from the policy. If you survive the fixed period there will usually be no benefits or payouts with such a policy.
Joint term life insurance works in a similar way except that instead of providing cover in the event of a single death the policy will payout if either you or your partner pass away during the fixed term. In the event that either of you do pass away, the surviving partner will receive an insurance payout but the policy will then be terminated.
Joint term life insurance may cost significantly less than purchasing two separate term life insurance policies. However, it may be wise to consider that if one partner dies during the fixed term the surviving partner will be left uninsured before the fixed term is over.
Last death joint term life insurance
You may also be able to set up your joint term life insurance policy so that rather than paying out on the death of the first partner, the policy will pay out only after the subsequent death of the second partner too. This may be an attractive option to you if you and your partner have children together and want to leave the insurance payout in trust to your children in the event of both of you passing away.
For impartial tailored advice on finding the right insurance policy for your needs contact the life insurance advice service provided by one of our independent partner firms and receive a free initial consultation.
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