The joint term life insurance quotes available through Kanetix are for "joint first-to-die" life insurance policies. This means when you take out the policy, you are insuring two people, but the benefit is paid only once - on the death of the first of the two policyholders.
Who would want joint term first-to-die life insurance and why?
There are several instances when a couple would want to consider joint term life insurance:
- New homebuyers
- New parents
The most popular use of joint term life insurance is for mortgage protection. A joint life insurance policy ensures that upon one of your deaths, the surviving spouse will be able to maintain the mortgage and pay off other related debts. And as an added bonus, you may be able to save some money.
We all know children can be expensive. Joint life insurance can be used to pay for expenses like childcare or tuition costs if you or your spouse should pass away before your children are grown.
Joint term life can be a great complement to your retirement plan as it provides a couple purchasing an annuity with more options. When a couple purchases an annuity usually their options are an annuity that provides monthly payments:
- until the first partner dies (a single life annuity), or
- until the remaining partner dies (a last-to-die annuity).
Often couples choose the latter as it leaves the remaining partner a regular monthly income. However, because the annuity has to last longer (beyond the first death) the monthly income is considerably lower then those offered through a single life annuity.
By purchasing a life insurance policy on a first-to-die basis this means you can purchase a single life annuity (which offers higher monthly payments) without jeopardizing the income for the surviving partner. Why? Because when the first partner dies, the life insurance policy will be paid out to the surviving partner.
What time periods are available for joint term life insurance policies?
At Kanetix, we currently offer online quotes for 10, 20 and 30-year policies (referred to as Term 10, Term 20 and Term 30 respectively). Below is a brief explanation of each to help you decide which is best for you and your family.