First-to-Die Life Insurance

What Does First-to-Die Life Insurance Mean?

First-to-die life insurance, also known as a joint life insurance policy, insures the lives of two people, typically a married couple. In the event that either person dies, the surviving partner receives the death benefit.

Insuranceopedia Explains First-to-Die Life Insurance

First-to-die life insurance benefits are typically issued more quickly than estate settlements, allowing the bereaved to cover expenses promptly. This type of policy also enables couples to avoid paying two separate life insurance premiums if only one death benefit is necessary for the household. However, it can be challenging to determine which spouse should be covered for a higher death benefit, which could be disadvantageous if the spouse with lower coverage passes away first. Additionally, a single death benefit may not be sufficient for the household’s needs. Therefore, it’s essential to carefully assess the household’s financial situation and requirements before choosing a first-to-die policy.