What is a joint life insurance policy?

A joint life insurance policy is designed specifically to cover two individuals under a single policy. It pays out a benefit upon the death of either of the insured parties. This type of policy is often utilized by couples, such as spouses or business partners, who want to ensure that the surviving party is financially secure in the event of the other’s death.

The defining characteristic of a joint life insurance policy is its collective approach, providing coverage for two people and offering a payout that typically benefits the surviving insured or their beneficiaries. This can provide peace of mind and a level of financial protection that may not be achievable through separate individual policies.

The other options do not accurately describe a joint life insurance policy. A policy that covers only one individual for their entire life is an individual whole life insurance policy. A temporary policy that provides coverage for a specific period refers to term life insurance, which does not cover two individuals or pay out on the death of either party unless specified. Lastly, a policy that pays out only for accidental deaths describes accidental death and dismemberment insurance, which focuses solely on payouts resulting from accidents, rather than covering two lives jointly.