Joint Term Life Insurance

In most American households, both partners or spouses earn an income. That means the average household needs to insure the lives of at least two people to protect the financial stability of the family. Freestanding life insurance policies for each member of a couple can be prohibitively expensive. A more economical alternative to independent life insurance coverage is an insurance joint life term policy. Also known as first to die term life insurance, joint term life insurance insures both parties, usually two spouses, at a fraction of the cost of two separate policies. If you and your spouse both need life insurance protection, joint term life can help you save.

Why Joint Term Life Insurance?

In dual-income households, the loss of either partner's income could prove a devastating financial hardship on the family. As a result, most couples choose to carry life insurance protection on both members of the partnership, but doing so can put a severe strain on the household budget. For the same protection at a much more reasonable cost, couples can opt for insurance joint life term. The policy protects both partners at the same time, awarding a death benefit for the spouse who dies first.

How It Works

First to die term life, or joint term life insurance, will pay a death benefit upon the death of either insured party. The death benefit will go to the surviving spouse, who can use the money to replace the income of the deceased, pay off debt obligations, handle child-raising expenses, and so on. If both partners die at the same time, which most insurers define as within 15-30 days of each other, the beneficiaries of the insurance joint life term policy will receive a full death benefit for each individual's death. The policy will insure both partners for an equal amount.

The premiums on an insurance joint life term will be much lower than those of a typical term life policy. In most cases, the insurer will only have to pay out one death benefit, which is why they charge less for joint term life insurance. Most carriers base the cost of a joint term policy on the age and health of the older spouse/partner. To see how much you and your partner would pay for a joint life insurance policy, input your information into the field above. You will see the best offers of a number of top-tier carriers on joint term protection.