Joint Term Life Insurance
Saving money is always something that couples strive to do with their financial planning. Buying term life insurance as a couple instead of owning two individual policies is one way to save and enable your family to invest the reserves. These “two-for-one” policies are known as joint term life insurance policies and also referred to as “joint first-to-die.
How Joint Term Life Insurance Works
Joint term life insurance covers two people under one policy. Once the first of the two policy holders passes away, the benefit is paid to the surviving partner and the policy then terminates. The benefit is paid to only one person.
Some term life insurance companies allow applicants to have medical conditions. It is not uncommon for term life insurance companies to approve joint applicants that may have things like high blood pressure, heart disease, diabetes and even cancer. Be sure to ask which medical impairments are acceptable when you request your joint term life insurance quote. Joint term life insurance policies are usually offered at 10 and 20-year coverages.
Difference between Joint Term 10 and Joint Term 20 Life Insurance Policies
Aside from the length of time that each joint term life insurance policy covers you, the 10-year policies are designed to cover people who basically have their lives under financial control but want extra coverage. This plan is designed for families whose children are older and whose mortgage is mostly paid. Joint term 10 is basically for those who need less coverage time since their expenses are minimal. 10-year joint term life policies are usually renewable, convertible and the most cost effective way to insure your family. Note that joint term life insurance coverage saves about 15% over an individual term life insurance policy.
10-year policies offer premiums that are fully guaranteed and remain level over the whole 10-year period. While the term life insurance premiums are likely to be more expensive than your initial term life insurance rates, coverage is guaranteed. You are not required to take a medical exam upon renewal. This coverage is usually renewable until you reach age of 80 or 85.
Joint term 20-year life insurance is basically the same as the term 10. The term life insurance premiums are still guaranteed to remain level for the life of the policy coverage and the policy is renewable after 20 years. Buying a 20-year policy is designed for those who have younger families and need the extra time coverage. This is for those who are just starting out and are not as financially stable.
Whether you are a married couple or a couple who lives together and shares all of your financial obligations or a mortgage, joint term life insurance coverage might be something to consider.
Author: Sharon Taylor is a veteran financial writer and frequent contributor to EQUOTE Life Insurance