Reader question:

Is joint life insurance coverage a good idea?

May

Good question.

Many couples choose to purchase joint life insurance coverage, which is usually a first death policy that pays out to whichever spouse is the first to survive. However, joint life insurance coverage is not always the best choice for couples, and instead most should consider getting two separate life insurance policies.

As much as nobody wants to admit it, we have to consider the high divorce rate in this country. At over 50%, it’s very likely that half couples will not make it for a whole life insurance policy, or even a term one. If both of you get separate life insurance policies, and there is less hassle if you should happen to get a divorce.

Another problem with joint life insurance coverage is that, once the first spouse has died, the other spouse no longer has coverage. So, even if they get remarried or just want to get their own life insurance plan, they have now aged quite a bit likely, and therefore will face much higher prices for a life insurance policy.

Also, two separate life insurance policies are worth more because they payout twice rather than once, and so are worth more money although not costing too much more.

take care,

Fashun