Joint Term Life Insurance
Covers two (or occasionally more) people interdependently.
Joint term life insurance is just like standard term insurance, but covers more than one person. Usually married couples use joint term life insurance policies to protect each other or their children in the event of the death of their spouse.
Joint term life insurance is a variant on traditional term insurance. As you might guess (just like a joint bank account) joint term life insurance is primarily used by married couples. It ensures a payout, depending on the contract, on an “either-or-both” basis.
So if you have children who need looking after, you might take out a joint policy which pays out on the first death; so that the remaining parent has money to raise the kids. Or, if your children are older, you might consider a joint term life insurance policy as more of a nest-egg, structured to pay out after the death of both parents as a way of passing on value for the children’s futures.
Indeed, it is common practice for a joint term life insurance policy to run its term exactly until the age of maturity of the youngest child in the family.
Premiums depend of course on the length of the term, and on whether it is payable on the first or last death (first death policies are usually a touch more expensive).
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