Obtaining the proper amount of life insurance is a crucial aspect of any financial plan. While it is certainly true that many families carefully plan, budget, and invest a certain portion of their earned income each month, many simply forget, or choose to ignore, their need for life insurance. Many people are under the erroneous belief that they cannot afford to pay the premiums on two different individual insurance policies. Before you go out and buy separate policies consider whether or not a joint life insurance policy can satisfy your financial needs.
It is no secret than females typically qualify for much lower premiums than males can. Whether this is due to the fact that females generally have longer life expectancies or simply because they typically have fewer overall health risks, males are usually required to pay much higher premiums. If, however, you can entice the insurance companies a bit by adding a related female (i.e. spouse) to your policy, you may actually be able to get a joint life insurance policy that is significantly cheaper than two separate term life policies would be on their own.
Joint term life insurance policies typically work best in an environment where spouses share expenses equally. This helps to prevent any misunderstandings should a couple elect to go their separate ways. As this type of policy is written to cover two individuals simultaneously many times they are much more affordable when compared to individual policies. Furthermore, they are designed to pay out the death benefit to the surviving spouse if either covered spouse passes away. Of course, just like any term life insurance policy you are free to designate any beneficiary you want.
Besides simply reducing the amount of premiums you have to pay, joint insurance policies provide a much greater degree of financial certainly in an ever changing and uncertain world. Consider the financial impact of losing your spouse. Who would help you pay your mortgage or your child’s daycare should your spouse pass away? Do you earn enough money individually so that you and your family could continue to live the same standard of living that you are currently accustomed to having? Would any area of your finances suffer without the contributions of your spouse?
Obtaining the proper levels of life insurance should always be a part of your overall financial plan. It is this financial knowledge that can help provide the peace of mind you will need should your spouse suddenly pass away. Investigate your options and carefully consider whether a joint life insurance policy is right for your circumstances.