There are so many terms, phrases and policies in the life insurance market and it is very common 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 the joint policy covers more than one person. Generally, married couples or someone with whom they share a monetary commitment may want to consider being insured under a joint plan. As a result, both husband and wife are protected, as well as children, in the event of death. You should evaluate your situation and your needs before considering purchasing a joint term life insurance policy.

Some have referred to the joint policy as joint first-to-die term life insurance, where policy benefits are only paid once. This means that there is only one payment to the surviving partner when the first of the two joint policyholders dies. A joint policy might not be right for you, even if you’re married. However, it is 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 grow up.
• Retirees: Joint term life insurance can be used to plan for retirement by allowing you to purchase an annuity with more options. The annuity is typically purchased with options that provide monthly payments until the first member dies (a single life annuity) or until the remaining member dies (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 choose the second option, you will provide the remaining member with a regular monthly income that is considered less than that 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, 10 years is usually enough. Couples with older children, with their mortgage paid off, or nearing retirement may want to consider a longer term.