Joint Life Insurance
What Does Joint Life Insurance Mean?
The term “joint life insurance” typically refers to a policy purchased by a couple or two individuals who are closely connected, usually in the legal context of marriage. However, joint life insurance can also be taken out by two business partners.
Insuranceopedia Explains Joint Life Insurance
Instead of purchasing two separate policies, a couple can opt for a joint life insurance policy. This policy provides compensation upon the death of one partner, typically covering only the first death. After the first death, the surviving partner is no longer covered. Couples often choose this option because it is more affordable than purchasing two individual policies.
However, a potential issue could arise if the couple or partnership faces a future complication, such as a divorce or the closure of the business. In such cases, the insurer may not provide coverage if the death occurs after the relationship has been dissolved.
