US insurance companies offer two types of joint life insurance. The first is joint life insurance in the event of a first death.
This policy assumes that when one of the insured dies, the surviving partner receives a large lump sum payment, which will allow them to hold a decent funeral and live on the insurer's payment for some time.
Some insurance companies offer to convert this payment into an individual policy, but the new policy may result in higher premiums or lower monthly payments.
The second type of marriage annuity is joint life insurance in case of a second death.
This policy does not involve any payments after the death of the first partner, but the second will be receiving pension for the rest of his life. Moreover, some insurance agreements are for 10-15-year periods, when policy beneficiaries can be appointed. If both partners die before the end of 15 years, their heirs will receive payouts from the insurance company.
Pros and cons of joint life insurance:
• Can be more affordable than two separate policies
• Empowers surviving beneficiaries in income planning
• No marriage required
• The price of the second death policy generally depends on the physical condition of the healthy spouse
• Difficult to separate in a divorce
Source: https://www.forbes.com/advisor/life-insurance/joint-life-insurance/
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