Understanding Joint Life (JL) insurance, which is sometimes called multi-life insurance, begins with its purpose of first-to-die coverage on two or more insureds. Insurers have offered joint life coverage in many forms, including base policies of permanent or term insurance or Additional Insured Riders (AIRs) to single life policies. Typically, planners have used traditional whole life, current assumption life, or universal life when designing permanent plans. In recent years, the demand for joint life base plans funded with permanent insurance has waned with additional insured riders more frequently being employed to serve this particular need. These AIRs are usually, but not exclusively, term riders, depending on the facts, circumstances, and objectives of the application.
However, some insurers still offer permanent joint life policies and the need for permanent plans in certain circumstances stills exists, so the following discussion addresses these planning applications, strategies, and issues.
Reproduced with permission. Copyright The National Underwriter Co. Division of ALM