Joint life insurance policies are available in two ways:
- A first-to-die policy. This is where the death benefit will be paid after the death of one of the spouses.
- A second-to-die policy. Also called a survivorship policy, this is where both spouses must die before the beneficiaries receive the death benefit.
There can be advantages and disadvantages to purchasing a joint life insurance policy. The main reason to buy one is that this type of insurance can be cheaper than buying two separate life insurance policies. In the case of a second-to-die policy, this also gives the surviving spouse the flexibility to delay receipt of benefits and change beneficiaries as needed.
On the other hand, joint life insurance policies can be a little more complex than individual life insurance. For example, with a first-to-die policy, if the surviving spouse takes the entire death benefit, there will be no more death benefit payable to other beneficiaries. Therefore, the surviving spouse would need to reapply for a new policy, but may find it difficult to qualify due to their current age and medical condition.
Alternative: a spousal endorsement
Another way for couples to insure themselves without paying for two separate policies is to simply purchase a spousal endorsement. A rider is an add-on policy to an individual life insurance policy where the primary insured adds additional coverage for other dependents (such as children).
This type of arrangement works well in situations where one spouse works and the other is a stay-at-home parent. The working spouse would take out the life insurance policy and become the primary insured. They could then get a spousal rider that would provide a smaller death benefit for the stay-at-home parent.
Runners are usually very cheap, easy to add, and don’t require medical exams. However, they are limited in the amount of death benefit they can provide, usually just enough to cover funeral expenses. The jumper is only good as long as the primary is alive and the policy is in effect. When shopping for temporary life quotesask about endorsements and weigh this option against an individual or joint life insurance policy.
The essential
Most life insurance policies are for individuals and only cover one person. However, couples can purchase joint life insurance if they want an insurance policy that covers both people. If one of the spouses already has insurance, another alternative may be to add a spousal endorsement to the existing policy.
Contact details:
Public Relations Specialist
(201) 633-2125
