First-to-Die Life Insurance

Updated: 09 June 2023

What Does First-to-Die Life Insurance Mean?

First-to-die life insurance is an insurance policy that insures the life of two people, typically a married couple, such that in the event of either of their deaths, the survivor receives the death benefit.

First-to-die life insurance is also known as a joint life insurance policy.

Insuranceopedia Explains First-to-Die Life Insurance

First-to-die life insurance benefits are issued faster than estate settlement and allow the bereaved to settle bills more quickly. It also eliminates the need for a couple to pay for two life insurance premiums in case the insured party’s household only needs just one death benefit. However, it may be difficult to predict which spouse should receive more coverage for a higher death benefit. This would be disadvantageous in the event the spouse with lower coverage dies first. Moreover, only one death benefit may not be adequate. Therefore, it is important to carefully consider the financial situation and needs of one’s household before deciding on a first-to-die policy.

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