Life insurance usually pertains to one life. There is, however, a kind of coverage that actually covers two lives, providing benefits for whichever one of the two named insured in the life insurance policy dies first. This is a practical choice for those couples with joint financial accountability. Instead of having to take out two separate policies, they can simply choose to protect themselves with joint life insurance coverage.
This kind of policy is normally used when the need for insurance is only a short period of time ranging from about ten to twenty years. The premium these policies are usually level throughout the term unlike yearly renewable coverage that adjust premiums as the insured ages. Most joint term insurance coverage’s are also renewable up to a certain age.
Different companies would have different requirements and underwriting guidelines as to these and other kinds of insurance coverage’s. It would be a good idea to ask around to see what each company is offering so that you can take advantage of the products that give you the best benefits at the lowest premium rates. There are online insurance companies that could give you an idea of their product offering with respect to these kinds of insurance coverage’s.
Get in touch with reliable and stable insurers so that you know that you are getting the right information. Do not easily be swayed by marketers and agents who may try to push you in a particular direction when making your purchase decision. It is always prudent to make a decision only when you have all the information that you need and have evaluated all your options wisely.
People usually choose to take out a joint life insurance policy when they feel that they only need to cover the “share” of one person when he passes away as in the case of a loan. A loan where a husband and a wife are jointly held accountable, either one faces the risk of having to assume the entire loan in the event that the other passes away unexpectedly.
To cover this risk, they take out a joint life insurance policy where they are rated with one premium. Should any one of them unexpectedly pass on, the surviving spouse can make a claim for the entire amount of coverage. Note, however, that the policy ceases when such a claim is made and the surviving spouse does not enjoy the same coverage anymore. He should then take out another life insurance policy where he is covered for the entire amount of his financial obligation.
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