Joint Life Insurance is an alternative to two individual life insurance policies (e.g. for spouses) and has a few differences to consider when compared to two independent life insurance policies.
Joint life insurance is often slightly cheaper than two individual life insurance policies. Both policies would pay out the policy coverage (also called policy face value) if one of the policy holders dies. That’s where the differences start: with two independent life insurance policies the survived policyholder will keep his/her existing individual life insurance policy. In case of joint life insurance, the survived policyholder will need to apply for a new policy which most likely will be more expensive since the price will consider age (which increased, driving higher policy costs).
Some insurance companies have limits regarding age and it may happen that a new coverage will not be available.
Insurance Tip related to Joint Life Insurance:
Two individual life insurance policies will ensure more flexibility.
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