Joint Life Insurance Cost

Joint life insurance costs 10-20% less than purchasing two separate policies. For a healthy couple (both age 35), a $500K joint term policy costs roughly $35-$50/month vs $22-$30/month each for separate policies ($44-$60 total). The savings come from underwriting one policy instead of two.

First-to-die: pays the death benefit when the first spouse dies, then the policy ends. Best for income replacement and mortgage protection. Second-to-die (survivorship): pays only after both spouses die. Best for estate planning, inheritance, and paying estate taxes.

Individual policies are generally better because: each spouse retains coverage if they divorce, the surviving spouse keeps coverage after the first death, and you can customize coverage amounts for each person. Joint policies are cheaper but less flexible.

Joint life insurance becomes complicated after divorce. Options: split into two individual policies (if the insurer allows), one spouse buys out the other's interest, or cancel the policy. This inflexibility is a major drawback of joint policies. Individual policies avoid this issue entirely.

Joint life insurance works best for: married couples with similar coverage needs, business partners (key person insurance), estate planning purposes (second-to-die for estate taxes), and couples who want the lowest possible premium. Couples with different coverage needs or concerns about divorce should consider individual policies.