First to Die Term Life Insurance. There’s no doubt that marriage teaches you how to act as a team. The two of you do everything together, from taxes to coordinating outfits for summer events. So it seems logical that the two of you would also collect insurance together. We’re here to help.
Our independent insurance agents are always ready to find the right solution to help secure your financial future as a married couple, no matter who checks in first. They will guide you through the details of a first-to-die combined life insurance policy and provide you with the best options right away.
Before we get into joint life insurance, here are some statistics to think about:
- In 2018, 40% of Americans did not have life insurance.
- Men are more likely to have life insurance than women. In 2016, 62% of men were protected compared to 56% of women.
- Many uninsured Americans think that life insurance costs two or three times as much as it really does.
- Many Americans who are insured think they don’t have enough life insurance.
- One in three Americans either doesn’t buy life insurance, or buys more coverage, because they don’t like the thought of dying.
- Forty percent of married women wish their husbands had life insurance or had more protection.
What is joint First to Die Term Life Insurance?
Simply put, it’s for couples, not individuals. When a couple takes out life insurance together, they have only one plan and, therefore, one final payment.
In the case of a first dead policy, payments will be made when the first partner dies – you guessed it. Another option is second insurance where payment is made after the second pass.
Like a traditional life insurance policy, first death insurance helps “replace” the income of a deceased spouse after they pass away and is a popular choice for many people because it provides funds for current and future family expenses.
The position of the last spouse can use it to process huge children’s college tuition payments or pay off debt, and it can help them maintain the same lifestyle.
What are the advantages of a first to die policy?
For starters, it may be cheaper to use a combined life insurance policy than to have two separate policies. Since the insurance company only needs to write one policy for the two of you, they take on less risk and so your premiums are lower. Plus, you and your partner will only get one payment instead of two.
The first to die policy can really benefit the surviving spouse because they will receive compensation when their partner dies. The surviving spouse will also be able to access plan benefits more quickly than they could with two separate life insurance policies. This will provide greater financial security for the surviving spouse.
Are there any downsides to the first-to-die policy?
If a couple separates, it may not be as easy as dividing the insurance policy as if it were written separately.
Splitting joint policies can often be tricky, but having an insurer—who can adjust coverage into two separate plans in the event of a split—can prevent problems. Ask your agent about this before you write a check.
In addition, there may not be enough funds to support either child, if both partners die. There is no child support left after the death of the last spouse.
The surviving spouse may have to buy a new life insurance policy, or start strict budgeting to support their children. In such a situation, a “dead first” policy may not be worth it.
What is the purpose of the First to Die Term Life Insurance?
Suppose a husband and wife own a home, earn roughly the same salary, and have no children. Their debt will be based on two separate incomes. If one of them dies prematurely, the remaining spouse must now assume the same financial obligation on half of the income. A first-to-die policy would avoid this setback, at a small premium.
The first to die policy is also well regulated for business partners who have joint financial obligations. If one partner dies suddenly, the surviving partner does not have to close the business.
In terms of financial benefits, with only one policy fee and one death benefit to cover, first-to-die policies can have great potential for cost savings.
What’s So Great about an Independent Agent?
Insurance policies can be tricky, and let’s face it, browsing and discussing first-to-die life insurance policies can be downright depressing. Independent agents exist to simplify the process and save you some grief.
Independent agents are there to make sure you get the absolute best deal, and the one that meets your unique needs. They shop and compare insurance quotes for you, and they’ll break down all the jargon so that you understand exactly what you’re getting.
Finding and Comparing First-to-Die Insurance Quotes
Our expert insurance agents will review your needs and help you evaluate which type of first-to-die joint life insurance makes the most sense for you.
They’ll also compare policies and quotes from multiple insurance companies to make sure you have the best protection out there. They’ll hook you up in a comprehensive and affordable way.