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Is Joint Life Insurance Cheaper Than Two Term Policies
If you are married couple, both earning and need financial security for surviving partner in case of death of one of you, then joint life insurance is better than two single insurance policies. The reason is simple, though the premium for this type of policy is expensive than a single policy but comparatively cheaper than two separate policies which provide the similar amount of coverage.
The advantage of this joint life insurance policy is that the couple can get the life cover protection to both of them without spending much of their money on insurance and concentrate instead to invest their hard earned money along with adequate protection for both of them.
The premium on this type of joint insurance is calculated depending on the age of the persons insured. Death benefit will either be give to the surviving spouse after the first death or to the dependants (children) after the second death. In the first type where the surviving member gets the death benefit the life cover lapses while in the second type the premiums are comparitively higher.
Depending on their needs couple can either go for the first type or second type of joint life insurance and both have their pros and cons. Before planning for insurance it would be prudent to consult an insurance advisor and plan your insurance portfolio. Joint life insurance is always a cheaper alternative than two single term policies because once one of the couple is death the other will not have any dependants to carry on the insurance policy. And if they have children and both are working, then the second death type of joint life insurance would benefit the children and at the same type will be cheaper than the two single insurance policies.