What is joint life insurance?
Joint life insurance is a type of life insurance that insures two people, however, it only pays out once. In the event of one person’s death, the survivor will be paid a lump sum and the policy will come to an end. When the policy ends, the survivor no longer has life insurance for themselves.
This type of policy is most suited to married couples, long-term unmarried couples and even business partners. Typically, it’s cheaper than taking out two separate life insurance policies but it’s worth remembering that when one policyholder dies, the other is left uninsured. Also, joint life insurance policies can be difficult to administer in the event of separation or divorce.