Joint Term Life Insurance - An Innovative Alternative

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Joint term life insurance is one of the most innovative policies to be introduced to the life insurance industry in recent years. Today...in most families both husband and wife work in order to make ends meet. The loss of the income earned by either spouse can create financial hardship on the other. Each party should have a life insurance policy on their life...the cost for a policy on each life that would sufficiently provide for the family in the event of death can be prohibitive. An affordable solution may be joint term life insurance. Here is how it works.

• Death Benefit

  This can be considered a first to die policy. In the event of the death of either spouse the death benefit for which they are insured is paid to the survivor unless otherwise elected at the time of application. If both parties die at the same time the full death benefit is paid for each separate death. Some companies write into the joint term life policy that the actual death must occur within 15 or 30 days of each other. Both are insured for an equal amount.

• The Premium

  The premium for the joint term life insurance policy is much lower than had each party purchased policies separately. It is usually based on the age of the older party.