| Joint Term Life Insurance: Caring For The One You Love |
 |
 |
 |
| Written by Lorraine Benham |
| Monday, 31 May 2010 09:13 |
|
The life insurance industry is littered with many different types of policies. They have been developed to provide more flexible options for prospective policy owners but which is the right one for you? If you are considering buying a joint life insurance policy remember these policies have a dual identity.
The life insurance industry is littered with many different types of policies. They have been developed to provide more flexible options for prospective policy owners but which is the right one for you? If you are considering buying a joint life insurance policy remember these policies have a dual identity. Joint life policies can be either a term policy or a whole life policy Term life policies as a general type of insurance refers to a policy taken out for a specific term, with a defined premium and an agreed face value or death benefit if the policy owner dies. Whole life policies have defined premiums but the policy owner is covered for the whole of his or her life and the beneficiaries get both a death benefit and most of the value of the premiums that have been paid. The dual nature of joint life policies is that they can be purchased as a joint whole life policy or as a joint term life policy. Why have one of these policies? Joint life policies of either the term or whole life variety, are normally taken out by a husband and wife or a common law couple. The intent of the policy is to provide a cash benefit to the partner who survives to help them pay for the expenses of rearing children, to cover a mortgage or to meet other financial liabilities. If the policy is a whole life one, the survivor gets both a death benefit and the value of the premiums paid. If the policy is a term one, the premiums will be much cheaper but there is only a death benefit paid. The usual reason for taking out a term life policy with a defined premium, for say 10 years, is to ensure a family is covered during the most vulnerable years of mortgage paying and child rearing. All term policies can be renewed at the end of the term of the policy though most let them lapse once that time is over. The cash benefit from this type of policy does provide real peace of mind if one partner has to shoulder all the responsibilities that previously were shared. The cost of covering a mortgage can be considerable. Joint term life insurance is often taken out by a couple to insure against one partner having to meet that cost on their own. For this reason joint term policies are often also called mortgage insurance. Who buys these policies? Joint term life policies are not just taken out by couples with a young family or a mortgage. Couples in their retirement can take out these policies. This is usually done when the retirement lifestyle the couple has set up will be compromised if one partner dies. The term of a joint term policy can be 1 year, 10 years or longer. A 10 year policy is very attractive to a young family but if there are going to be college expenses needing to be paid in future they may want a 20 year or even a 30 year policy. A quote from a reputable insurance company will let you know what kind of premiums you will have to pay and then you can assess what works best for you, taking the family budget and needs into account. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. For Which Life Insurance, information that's helpful and clear and for FREE QUOTES on all Life Insurance, click here www.bestlifeinsuranceavailable.com |