There are so many terms, phrases and policies in the life insurance market and it is very common for you to get confused, especially when you are not very familiar with them. However, as you learn, you will notice that there are several types, such as whole life insurance and term insurance.

However, in both categories, there are more specific variants, such as joint term life insurance. Basically, there is not much difference compared to standard term life insurance that covers a single individual but a joint policy covers more than one person. Generally, married couples or someone with whom you share a financial commitment may want to consider being insured under a joint plan. As a result, both husband and wife are protected, as well as their children, in the event of death. You should assess your situation and needs before considering purchasing a joint term life insurance policy.

Some referred to the joint policy as first-to-die joint term life insurance, where the benefits of the policy are only paid once. This means there is only one payment to the surviving partner when the first of the two joint policyholders dies. A joint policy may not be right for you, even if you are married. However, it’s a sensible consideration if you have children, own a home, or are retired to ensure you provide enough protection for your children, pay your mortgage, and have a comfortable retirement life.

Most married couples would consider purchasing a joint policy in the following situation:

• New Homeowners: The most popular benefits if joint life coverage is mortgage protection. A joint life insurance policy ensures that the surviving spouse will be able to pay mortgages and other related debts.
• New Parents: Joint term life insurance covers child care expenses and tuition fees if your spouse dies before your children are grown.
• Retirees: Joint term life insurance can be used for retirement planning by allowing you to purchase an annuity with more options. The annuity is usually purchased with options that provide monthly payments until the death of the first partner (a single life annuity) or until the death of the remaining partner (a last-to-die annuity). The first option offers higher monthly payments without jeopardizing the income of the surviving spouse. The reason is because the policy will be paid to the surviving partner when the first partner dies. If you opt for the second options, you will provide the rest of the members with a regular monthly income that is considered less than what is offered through a single annuity.

Once you make the decision to purchase joint term life insurance for you and your family, you’ll need to consider the length of your policy. Normally, people will choose to cover for 10 or 20 years. If you have young children and just bought a new home, a 10-year term is usually sufficient. Couples with older children, with their mortgage paid off, or close to retirement may want to consider a longer term.