Joint life insurance policies have their advantages and disadvantages.
If you are thinking of picking up one as a married couple, then you should weigh this policy type with the single policy options that are available considering your own unique situation. Also, it is possible to find an insurance provider that has a package designed for you if you take time out to check, even though many of them offer packages, which are similar.
Now the reason why you are considering having this particular type of policy is so you can be assured your family is reasonably taken care of in the event that you are no more.
However, you should consider creating a family trust in addition to this joint life insurance. This trust can supplement the joint life insurance that you have and assist in ensuring your estate is transferred to members of your family as you want this to be done when you are no more.
In spite of the fact that single life policies are similar to this type of insurance (i.e. joint life), the major advantage this has is that this is often cheaper to having two separate life policies. Another benefit of this type of insurance is that it will provide funds to the surviving partner, which will help in meeting different financial obligations: from taking care of the children to paying off the mortgage.
Two typical examples of the joint life are term and whole life.
If you go for the joint term policy your premium will be less, but it also means that you will only be getting the death benefit.
On the other hand, if you go for the whole life option you will get premium value in addition to the death benefit.Alright as mentioned earlier you can also look into the option of creating a family trust to complement your joint term or whole life insurance. This trust sometimes known as living or inter vivos trust is set up while one is alive as you might have already guessed. It involves bequeathing your property to a trust created by you and held and managed by another chosen by you. Some benefits of family trust are: being able to protect your estate from likely financial liabilities since ownership of this estate is now the trust; possibility of reducing tax payment and also being able to avoid probate proceedings.
Finally, one major shortfall with a joint life insurance policy is the fear of what will happen to this kind of insurance when there is a divorce. This is why couples are often advised to also take a single policy together with this.
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