Joint life insurance policies, or survivorship life insurance plans are a way for married couples or business partners to have the protection of life insurance at a lower rate. As a result, more than one person can be on a life insurance policy if the policy is a joint life insurance plan or a survivorship life insurance policy. These plans are ideal for a husband and wife who want to have one plan or for business associates that need protection for their company against a significant loss if one of the business owners should parish.
Joint Life Insurance and Survivorship Life Policies
Joint life insurance policies and survivorship policies are generally purchased by married couples and the death benefit is typically paid out when the first insured person dies. If a husband and wife have a joint or survivorship life insurance policy and one of them dies then the other spouse would receive the death benefit. Another type of partnership this form of life insurance protects is a business partnership; if one of the owners passes away the other owner receives a death benefit.
Second to Die Provision
Second to die provisions can be included for joint life insurance policies. Basically, such a provision would make the policy payable after both insured individuals die. In such a case when the first spouse passes away, the second spouse does not receive a death benefit but the policy continues on as normal, increasing and applying premiums until the second spouse passes away and then the death benefit is paid to the predetermined beneficiary.
Discounts for Joint Life
There are discounts for joint life insurance; it is less expensive for a husband and wife to combine them onto one life insurance policy. In addition to paying less they can customize the plan to fit their needs, determining if they want the living spouse to receive the death benefit in the event that one of them dies or if they agree to leave the death benefit to another beneficiary when they both die.
Business Joint Life Insurance
Business joint life insurance is another common use for joint life insurance products. Business owners can take life insurance out on each other in an effort to protect the business from going under if one of the owners should parish. In most cases there are a lot of overhead expenses involved in owning a business and in the event of a partnership if one owner of the business dies the other owner could be left with more financial obligation than they can adequately assume. Joint life insurance offers protection for the business.
Term life insurance can be purchased for more than one person on a policy if the insured people qualify for a joint or survivorship life insurance policy. Many joint life insurance policies are owned by a husband and wife, but they can also be purchased by business owners to protect a company and its assets as well as the life of the business and the remaining, living owners. Joint life insurance is a great way to for insured individuals to save on their premiums.