Specialists in Joint Life and Survivorship Life Insurance Policies

Joint life insurance is just that - life insurance that covers two or more individuals on a single policy. Just as with a joint bank account, this will save the insured the trouble of having to pay separate premiums, keeping separate records, paying on separate days, etcetera. Joint life insurance and its partner option, survivorship life insurance are affordable options for:

• Those who want to protect their business’s financial interests
• A business partner should the other partner(s) expire
• A spouse in the event of a death
• Benefitting children after the death of both policyholders

Joint and survivorship insurance is therefore particularly useful for business partners and, most commonly, married couples. Unlike single policies, whereby the assured amount is paid directly to the nominated beneficiary, a joint life policy sum will be paid out when either the first or second of the two policyholders expires, depending on how you choose to structure your policy. A joint life policy has benefits beyond mere convenience; they can often work out to be much more financially beneficial than their individual policy equivalents, especially if both policyholders are gainfully employed. The main consideration when entering into a policy of this type is how you want your claim to be paid. If you want to use the proceeds to benefit your children or your estate, then you may wish to consider a survivorship life insurance policy – a second to die insurance ideal for these purposes.

Joint Life or Survivorship Life Insurance?

In a joint life policy, there is a higher likelihood of making a death claim, and this will make premiums higher as compared to single life insurance, but the benefits of knowing that your loved ones are guaranteed a pre-determined amount in the event of your death far outweigh the extra financial burden in most cases. Should two parents expire whilst having joint life insurance, their children will benefit, which many find reassuring. Joint life insurance is most commonly used on a first to die basis.

Survivorship life, or second to die insurance policies are commonly used for estate planning. With the death benefit not being paid until the death of the policy’s last insured individual, it is usually the estate or the insured’s children that are the beneficiaries. Often those of retirement age, who don’t rely on each other for income will purchase a policy for these reasons. Due to the policy’s longer timeframe, premiums are often lower than with joint life insurance. As far as businesses are concerned, the proceeds contribute to the expenses for the continuation of the business, such as the employment and training of replacement workers and the repayment of outstanding money owed.