“Joint life first death” life insurance is a type of joint life insurance policy that covers two individuals, typically partners or spouses. The policy pays out upon the first death of the two insured individuals.
Here’s a breakdown:
Joint Life
This refers to the fact that the policy covers two lives, usually partners or spouses.
First Death
The policy pays out when the first of the two insured individuals passes away. After this pay out, the policy ends and doesn’t provide any further benefit upon the death of the second individual.
The primary purpose of this type of insurance is to provide financial security to the surviving partner. For instance, it can be used to ensure that a mortgage or other debts are paid off, ensuring that the surviving partner doesn’t face financial hardship.
For homeowners or first-time buyers in the UK, especially those with dependents, this type of policy can be particularly beneficial. It can help ensure that the family can maintain some financial security, and not have to worry about selling the property due to financial constraints.
“Joint life first death” is the default option for joint life policies.
These policies can include:
- Decreasing mortgage life insurance
- Level term insurance
- Whole of life insurance
- Family income benefit insurance
It is also possible to select “Joint life second death” cover, which would only pay out when both policyholders have died.
