Joint Life Insurance: Meaning and Cost

Over the years, the rate at which couples take out joint life insurance on themselves has increased by far. This is because many relationship partners have seen the upsides of investing in life insurance and doing it together via joint life insurance schemes. With this type of insurance, you have the opportunity to cover not only yourself but also your spouse under the umbrella of one insurance policy contract.

The advantages of joint life insurance in Toronto are numerous. It is convenient, for one. In the past, only the primary breadwinner of the family used to get a life insurance cover. However, in recent times, many couples, spouses and even business partners are seeing the need to take out life insurance together. 

In truth, the standard one-person life insurance policy has some benefits. But, mutual life insurance offers so many opportunities that you will not get otherwise. Furthermore, many families today have both spouses in the working class. Hence, both spouses can be classified as breadwinners. In the case of a double income nuclear family, it will seem like a very straightforward conclusion to take out joint life insurance. 

However, even in cases where only one partner is working, it is still equally important for both parties to have life insurance. What better way to do it than to use mutual life insurance? This begs the question of what joint life insurance is in its entirety. In this blog, we will explore what joint life insurance means. More importantly, we will discuss the cost of joint life insurance in Toronto. 

Related article: How Much is the Cost of Life Insurance?

 

What is Joint Life Insurance?

First off, you need to know that joint life insurance is like every other life insurance policy. That is, it ensures that your loved ones are well catered for in the event of untimely death. However, unlike regular life insurance, the joint life insurance policy allows you to take out life insurance for two people at the same time under the same contract. This means either you and your spouse, relationship partner or even a business partner can register under the umbrella of one joint insurance contract.

Joint life insurance is designed to cater for couples or partners if either one of the partners passes on. There are certain benefits that this type of life insurance policy offers. One of these benefits is the fact that the cost of joint life insurance is relatively cheaper to buy. The lesser life insurance prices, therefore, make for a more affordable premium. It is also worth mentioning that mutual life insurance pays out irrespective of which partner dies first.

It is important to note that different insurance companies have different terms and conditions. Some offer extra benefits such as a regular income to the surviving spouse alongside the death benefit. Others have clauses that cater for situations such as critical illness. 

The only foreseeable drawback to mutual life insurance in Toronto is the fact that the payout is on a first claim basis. That is, after the first policyholder dies and the death benefit is paid, the policy ends. However, some insurance companies may offer exceptions to this rule.

This type of insurance is particularly beneficial to young couples who cannot yet handle the strain of individual life insurance with higher premiums. It also recognizes that fact each spouse or partner has equal importance and relevance in the relationship. 

 

Cost of Joint Life Insurance 

Now that you have a clear picture of what joint life insurance is, the next thing you are probably wondering is how much it costs in Toronto. As mentioned earlier, joint life insurance prices are generally more affordable. And even better, they offer considerably higher death benefit payout, which is, in most cases, worth more than the amount you and your spouse pay. 

Now it may be difficult to give you an exact quote on how much the cost of joint life insurance will be for you and your partner. This is because of the numerous factors that go into deciding the life insurance prices for each couple. However, we can give you an estimate.

For joint life insurance that is worth between $250,000 and $350,000, you and your spouse can expect to pay around $20 as a monthly premium. However, this only holds if you and your policy partner are below 30 years. If you are above 30 and below 50, you can expect to pay anywhere between $30 and $100 per month. The older you are before you take out the life insurance policy, the higher your monthly premiums will be.

You may then choose to add extra clauses such as a critical illness clause to your life insurance policy. However, this will raise your monthly premium. Other factors such as your medical history, job risks and your monthly income may affect your joint life insurance prices in Toronto.

 

Final Take

We hope that we have been able to answer your questions about joint life insurance and its cost. All things being considered, joint life insurance prices in Toronto are generally cheaper and more affordable than single life insurance policies. Yet, the insurance policy still comes with so many benefits that make it a worthwhile investment. 

Why don’t you take advantage of joint life insurance today? If you have further questions or perhaps you are wondering where to buy life insurance for you and your partner, please reach out to us. We are an insurance company with years of experience helping residents in Toronto achieve their coverage goals. Contact us today!

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