Joint vs. Separate Life Insurance
Married couples may have the option to get a separate life insurance policy or a joint life insurance policy.
A single-life insurance policy will cover only one person, while a combined life insurance policy will cover both spouses. Both options have pros and cons.
Joint Life Insurance Policy
A joint life insurance policy, also known as a double life insurance policy, covers both spouses and can cover more individuals.
This policy generally works with married couples who want to cover both spouses in one policy.
Married couples who want to lower the cost of life insurance and protect their assets from taxes after death can consider pursuing a joint insurance policy.
Combined life insurance comes in two options: first-to-die and second-to-die. Under a first death policy, the surviving spouse will receive death benefit payments after the first spouse dies.
In a second-to-death, also known as a survivorship policy, the heirs will receive death benefits after both spouses die.
Separate life insurance policy
A single-life insurance policy will cover only one person and will pay death benefits if the individual dies.
There are two main types of individual life insurance policies: term and permanent.
The term policy covers you for a specified time, usually 10 to 30 years, and the policy is permanent for the rest of your life and does not expire (assuming you pay a premium). A separate life insurance policy has nothing to do with your marital status.
Buying a separate life insurance policy allows each spouse to choose from a variety of different options, including term life, whole life, and universal life insurance.
Since the policies are not tied, you will be able to adjust each to the needs of each partner.