A joint life insurance policy covers two or more lives. When one of the insured persons dies, the policy pays the death benefit and ends. It no longer covers the other insured person.
A joint and last survivor policy does not pay when the first person dies, but pays when the last person dies.
Some advantages to Joint Survivor policies is if one of the proposed insured has some medical issues, the policy will take into consideration the health history and still provide a favorable rating.
Be sure to look at all your options as the benefits may be different between joint and individual policies.
If you have an agent/broker be sure to ask them to run some proposals so you can look at and understand all your options and the benefits of each.
Licensed Life Agent, Life and Finance/ 50 States, New York
Joint life policies are Life Insurance policies that are written on two lives rather than single, This means that if one of the joint policyholders dies during the term then the benefits would be paid to the use surviving holder. This is only a one time payment and the policy is to insure two lives. On the contrary, in a single policy the policy is written on one person or two people, therefore, becomes separate policies and the benefits are payed for each policy owner.
President, The Firm of Steven H. Kobrin, LUTCF, 6-05 Saddle River Rd #103, Fair Lawn, NJ 07410
A joint survivorship life insurance policy is a pretty ingenious creation.
The idea is to have two insureds on one policy.
What’s so good about that?
From an insurance company’s point of view, they don’t have to pay the benefit until the second insured dies. This can give them more years to collect and invest premium, than they would have with only one insured.
Can you imagine if one of the insureds was much younger than the other – say with an older gentleman and his younger new bride? Decades could pass before a claim will be made.
From the insured’s point of view, blended underwriting can work very much to their joint advantage.
Take the example above. The husband may unfortunately be older, and in ill health. He may be uninsurable, or eligible at a very high rate.
However, his younger wife may qualify for the lowest rates available.
The premium they would have to pay jointly could be very reasonable. Not only that: the husband may get coverage whereas on his own, that would be impossible.
You can see that joint survivorship life insurance can be a very affordable way to cover needs such as estate preservation, and making charitable bequests.
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A joint and last survivor policy does not pay when the first person dies, but pays when the last person dies.
Be sure to look at all your options as the benefits may be different between joint and individual policies.
If you have an agent/broker be sure to ask them to run some proposals so you can look at and understand all your options and the benefits of each.
The idea is to have two insureds on one policy.
What’s so good about that?
From an insurance company’s point of view, they don’t have to pay the benefit until the second insured dies. This can give them more years to collect and invest premium, than they would have with only one insured.
Can you imagine if one of the insureds was much younger than the other – say with an older gentleman and his younger new bride? Decades could pass before a claim will be made.
From the insured’s point of view, blended underwriting can work very much to their joint advantage.
Take the example above. The husband may unfortunately be older, and in ill health. He may be uninsurable, or eligible at a very high rate.
However, his younger wife may qualify for the lowest rates available.
The premium they would have to pay jointly could be very reasonable. Not only that: the husband may get coverage whereas on his own, that would be impossible.
You can see that joint survivorship life insurance can be a very affordable way to cover needs such as estate preservation, and making charitable bequests.