What Is a Joint Life Insurance Policy?

A joint life insurance policy is a type of life insurance designed to cover more than one individual. Here are the basics of the joint life insurance policy.

Joint Life Insurance Policy

The joint life insurance policy is a type of life insurance commonly purchased by married couples. With this type of life insurance, you are essentially purchasing a policy that will cover the lives of both individuals in the policy. When one of the individuals dies, the remaining spouse is going to be paid the death benefit by the insurance company. This type of insurance is sold as a term policy in the majority of cases.

Increased Cost

With a joint life insurance policy, you are typically going to be paying quite a bit more than you would have to with an individual life insurance policy. The reason that the life insurance company is going to charge more for this type of policy is that there is a higher likelihood of having to pay benefits. With two people involved, there is a higher chance that one of them will die and the insurance company will have to pay the other one. 

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