Is there a difference between a joint-life insurance policy and a second-to-die life insurance policy?
Many people confuse “joint-life” insurance policies with “second-to-die” policies. Although both types of policies insure more than one person, there are major differences between how the policies work and the reasons why different consumers choose one type of policy over the other. Joint-life policies name two or more people as the insured parties, with the death benefit payable upon the first death among the insured parties. Most often a joint-life policy involves spouses or business partners providing for the security of the survivor. Last survivor policies, or second-to-die policies, pay the death benefit only when the survivor dies. Such policies are popular for several purposes, the primary one being estate settlement for couples.” In short, a joint-life policy pays off as soon as the first person dies; a last survivor or second-to-die policy pays off only when the last person dies.
