Joint Life Insurance Policies

Joint life insurance offers a number of benefits for married couples. There are two types of joint life insurance, and your family's circumstances will dictate which one is a better fit. Here’s what you need to know as you evaluate the right life insurance policy for your needs.

Joint Life Insurance Policy Considerations

Married couples may find that they’re better off with a joint life insurance plan.

Within the world of joint life insurance policies, you commonly have the following two options to choose from:

First-to-die policies
Second-to-die policies

With first-to-die joint life insurance policies, the death benefit is paid when the first spouse dies. These are less common than second-to-die policies, but they offer unique benefits. A first-to-die joint life insurance policy may be ideal, for instance, if a spouse wants to secure a certain quality of life for their surviving spouse and financial dependents but doesn’t want to pay for a separate life insurance policy while their spouse does the same.

Second-to-die policies are geared toward those who want to protect their heirs. In particular, these policies can help pay for estate taxes if the death benefit is paid directly to the named beneficiaries. If you have a substantial estate that could be subject to estate taxes, a second-to-die policy may be beneficial.