Why couples should consider securing a joint life insurance policy.
Once you are married and getting ready to have children, life insurance in Los Angeles
becomes a necessity. However, if you and your partner do not want to get individual policies, then joint life insurance might be a great option for you. Here is what you need to know about joint life insurance policies.
- What is Joint Life Insurance?
A joint life insurance policy is a way to insure two people on a single life insurance policy. Joint life insurance comes in two main types: first-to-die policies and second-to-die policies. First-to-die life insurance policies will pay out death benefits on the first named insured that dies. So, if a husband and wife had this type of policy with a death benefit of $500,000 and the husband died first, their wife would receive the full $500,000. At this point, the life insurance policy would be exhausted.
Second-to-die life insurance policies, also known as survivorship policies, will pay death benefits when the second named insured dies. Using the same example of the husband and wife, when the husband dies, the wife would not receive benefits. However, upon her death, the listed beneficiaries would receive the payout. Second-to-die policies are popular with couples who do not rely on each other financially, but who want to assist their children following their deaths.
- Joint Life Insurance and Divorce
Many couples are concerned about what happens if they have a joint life insurance policy but end up separating. Sometimes, separated couples decide to keep their coverage, especially if they have second-to-die policies that are designed to support their children. Couples who have first-to-die policies may decide to set up a trust where their insurance benefit can be designated for their children once they reach a certain age. Finally, some couples simply decide to cancel their joint life insurance. Please keep in mind that this option will mean that each partner will have to go and secure their own policy.
This is what couples should know about joint life insurance. Do you have additional questions about your life insurance in Los Angeles
? If so, then contact the experts at Fuller Insurance Agency in Southern California. We are ready to get you covered today.