There are different kinds of joint life insurance policies, but most share similar streets. Joint life policies issue coverage to two or more individuals under one life insurance policy.
The typical arrangement is a husband and wife, but there are also business applications as well.
Most joint life insurance plans pay a death benefit on the first to die but second to die policies are quite common in estate planning situations.
Co-Founder, Coastal Financial Partners Group, California
Generally, when people ask about joint life insurance they are asking about joint second-to-die aka survivorship life insurance. These policies insure two lives and became popular with the advent of the unlimited martial deduction for estate planning in the early 1980s. For a lower premium survivorship policies pay nothing at the first death. The policy death benefit pays at the death of the second insured to die.
While readily available at one time, joint first-to-die life insurance policies are no longer available from A rated carriers that distribute through life insurance brokers.
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The typical arrangement is a husband and wife, but there are also business applications as well.
Most joint life insurance plans pay a death benefit on the first to die but second to die policies are quite common in estate planning situations.
While readily available at one time, joint first-to-die life insurance policies are no longer available from A rated carriers that distribute through life insurance brokers.