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What is Joint Term Life Insurance?

By Compuquotes Team on March 26th, 2008

If you're not well-versed with all things life insurance, you may find yourself getting confused and overwhelmed with all the terms, phrases, and policies involved. You will soon discover that there are many different types of life insurance, such as whole life insurance and term life insurance.

Even under these two broad terms are found more specific types of life insurance, such as joint term life insurance. Joint term life insurance is a type of life insurance policy bought by married and common-law couples who want to take advantage of the specific benefits that joint term life insurance has to offer them. Is joint term life insurance right for you? That depends on your situation and on your needs. Before you can consider joint term life insurance, you'll need to learn what it is.

Also referred to as joint first-to-die term life insurance, joint term life insurance insures two, generally married, people at the same time, but the policy's benefit is only paid out once, when the first of the two joint policy holders dies, to the surviving partner. A joint term life insurance policy doesn't necessarily make sense for all married couples and families. However, it is a sensible consideration if you're parents, homeowners, or retired, particularly if it takes both of you to provide for your children, make the mortgage payments, or contribute to your retirement lifestyle.

If you have a child or children who require financial provision from both parents, a joint term life insurance policy makes sense. For example, should you die before your children are grown, this type of life insurance coverage will ensure the widow or widower is able to financially survive single parenthood, helping to cover costs such as child care or tuition.

If you own a home together, and you both contribute to the mortgage payments, you can use a joint term life insurance policy as mortgage protection. This way, in the event of an untimely death-whether it's your own or your partner's-the remaining spouse will be able to keep paying off the home and won't have face disclosure.

Retired couples also benefit from a joint term life insurance plan. If you're retired and are considering joint term life insurance, you can choose between a single-life plan or a last-to-die annuity.

If you have decided to go with joint term life insurance for you and your family's needs, you'll also have to decide whether you'd like a 10 or 20-year policy. These are the most common term lengths for joint term life insurance coverage. If your children are younger or you have only recently bought a new home, the 10-year term is usually recommended. The longer term is more conducive to couples with older children, couples who have already been hacking away at their mortgage for years, or couples who are retired or nearing retirement.

For more information on joint term life insurance, you can do some online research or talk with a qualified life insurance agent to discuss your situation, your needs, and your options.

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