How Does a Joint Life Insurance Policy Work?

 


How Does a Joint Life Insurance Policy Work?

A joint life insurance policy is one contract covering two lives, with one premium being paid, says John Buenger, senior financial manager and advisor at the Rice Agency, an insurance brokerage firm in Maryland.

Joint life insurance isn’t just for married couples or romantic partners. You might also decide to get joint life insurance if you have a business partner. “Having joint life insurance ensures that the surviving business partner can continue to operate or make the appropriate company changes without the other,“ says Jessica Lepore, founder of Survested, a life insurance comparison site.

There are two types of joint life insurance — first-to-die and second-to-die policies. As the name suggests, the biggest difference between these policies is when the death benefit is paid out. 

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