Joint Life Insurance Is Cheaper Than Single Life Insurance

Joint life insurance enables two people to beyou have a business that is run jointly, you could
covered under the same policy, saving them thethink of going in for a joint life insurance policy as
hassle of having to pay twp separate sets ofit gives you the option of a single life annuity or a
premiums, maintaining receipts and rememberinglast to die annuity. This means that you can
due dates etc.  This is a very good way tochoose whether you want the sum assured after
insure life and is particularly beneficial for couplesthe death of the either one partner or opt for
or business partners. However, unlike the singlethe second one which pays at the death of the
policy where the sun assured is immediately givensecond life. Either ways it is a good to have joint
to the nominee, the maturity value or sumlife insurance.
assured in case of death of a joint life insuranceAdvantages of Joint Life Insurance
policy is paid only once at the time of either•    If you compare a single life insurance
insurer’s demise.with a joint life insurance, the premium rates are
Joint life insurance benefit for childrenhigh but definitely less that two separate policies
Joint life insurance policy benefits not only thecombined.
second life insured in the policy but also the•    You will be paid dividends annually. You
children who would receive the sum assured incould opt to take them collectively at the end of
case of the demise of both parents. There canthe term of the policy or be paid in cash annually.
be a clause stating that the money will be paid•    You could take a loan against your joint
only after the death of the first life insured or life insurance policy and pay back the amount in
second life insured, but in most cases it is the firstinstallments at the prevailing market rate of
type. If both of you have a high risk job andinterest. In case you are unable to pay back the
share the same interests then you may comefull loan amount, the insurance company will
under the second type.deduct the remaining amount from the sum
As the chance of indemnifying the death claim inassured when the policy matures.
a joint life insurance is higher, so the premium is•    This option protects the joint life
significantly more than what it would be in a singleinsurance holders against incidents wherein they
insurance. But the best thing about the policy isare unable to pay premiums, for example paid-up
that even if an untoward incident occurs andinsurance, automatic premium loan and cash
either one or both parent lives are lost, the futuresurrender.
of the children is secure. This is why the•    The critical illness clause ensures that
premiums for joint life insurance policies arethe joint life insurance policy holders will be paid a
heavy.lump sum in case of cancer, stroke or a heart
Joint life insurance is good for businessattack, thereby securing their future after a
Business partners stand to benefit too. In caseserious illness.