Joint Life Insurance
Definition - What does Joint Life Insurance mean?
The term 'joint life insurance' usually refers to a policy for a couple or two people, who in the purchase of the policy are intimately involved, usually in the legal context of marriage. On the other hand, a joint life insurance can also be enjoyed by two business partners.
Insuranceopedia explains Joint Life Insurance
Instead of buying two policies, a couple can buy a joint insurance policy. The policy provides the compensation once a partner dies or it pays for one death only and that means the first one. The survivor is no longer covered. A couple might decide to opt for this because it is cheaper than buying two policies.
A problem might arise from a future complication involving the couple or partnership such as a divorce or the shutdown of the business. The insurer might not provide the coverage if the death happens when the relationship has already been dissolved.