Joint Term Life Insurance Explained

First of all, what is “Term Life Insurance” ?

Term Life Insurance is where you take out a policy to cover a death of the insured for a set period – the Term. These are typically used by people who may have a mortgage, or other large repayment commitment, and require coverage to make sure that during the period of the commitment the payments are covered in the case of death. Once the Term insurance is finished you do not get any funds in refund for not making a claim against the policy nor do you get a surrender value.

Once you stop paying the premiums of a term life insurance policy, or joint term policy, the policy will be cancelled and you will not be entitled to any refund.

Joint Term life insurance, as the name implies, is where two people are listed on the policy and payment is made if one of them dies or is unable to work. Traditionally the couple on the policy would be man and wife and the policy is created to cover a joint liability (eg a mortgage, income replacement, or other such large domestic cost).

Once claim payment has been made on a joint term life insurance policy the policy is terminated, premium payments are no longer required, and the surviving partner should sign up for a another single term policy if they have on-going commitments that the original joint policy did not cover. Some life insurance companies will provide a window of time where the surviving insured can apply without proving current health and avoid underwriting.

Can I cash in a joint term policy ?

Traditionally – no you cannot. It is used purely as death benefit coverage.

Can I transfer a joint policy to a single person’s term policy ?

Most insurance companies will allow you to convert a joint term policy into a single term policy, providing that both parties are willing to do so. This is mostly used in the case of divorce, or separation where both of the insured’s agree to separate the policy into two policies however beware that there are life insurance companies that do not allow this type of change.

If my partner and I have a mortgage must we use a joint term policy ?

Not at all. If you wish to take out a single term policy just for you (or two policies – one for each of you, you are free to do so). However you should consider some of the pit falls of a joint term life insurance policy.

All policy features are based on equivalent single age this is when the life insurance company calculates a combined age which is higher the then oldest insured. i.e. conversion and termination date.

If one insured is ill and would not qualify for a new policy the healthy insured may have to renew at the higher rate in order to maintain the coverage for the insured that is ill.

Solutions Financial is a Canadian owned and operated life insurance brokerage.

 

 

Grandparents Insuring Their Grandchildren

We all know how much grandparents love their grandchildren. It’s as if grandchildren are the younger versions of their mothers and fathers. Grandparents love their grandchildren, and they absolutely love being able to care for them. A number of grandparents are considering the financial futures of their grandchildren. This is especially the case if the parents are not in the best financial situation. A number of grandparents have considered obtaining life insurance for a grandchild in order to make sure that their grandchildren are thoroughly protected financially. While life insurance for a grandchild is nothing new, the concept of grandparents taking out life insurance policies on their grandchildren may be something that more individuals will consider. With many grandparents in their senior years, a number of them may have the resources to assist their grandchildren. For those grandparents that want to leave behind something for their grandchildren’s future, obtaining life insurance for a grandchild seems like a very good option.

What is Grandchild Insurance?

Life insurance for a grandchild is something that is not mentioned as much as other life insurance options. However, this type of life insurance is readily available for any grandparent that is interested in investing in their grandchildren’s future. Life insurance for a grandchild can be purchased from a major life insurance company. There are some stipulations for this type of insurance. Usually, there is an age limit to which the life insurance policy applies. These particular life insurance policies usually allow for coverage to begin several weeks to a few months after birth up to age 21 and in some cases 25. The life insurance for a grandchild must be purchased during these ages to ensure coverage. The reason that so many insurance providers promote life insurance for a grandchild is that grandparents can help build their grandchildren’s financial futures. Likewise, grandparents can obtain low rates on premiums for life insurance for their grandchildren. In many circumstances, this type of insurance is usually a lot easier to obtain than other insurance products. With life insurance for a grandchild, there is usually is not a health exam required and the premiums are so low that it is actually advantageous for grandparents to consider assisting their grandchildren’s financial future.

Why Many Grandparents Want to Insure Their Children?

There are a number of reasons why many grandparents want to apply for life insurance for a grandchild. As is the case, many grandparents see themselves as second parents to their grandchildren. Oftentimes grandparents are found buying gifts and providing financial support to on a consistent basis. This is especially case if the mother and father are not in the best financial situation. Circumstances such are the reason why life insurance for a grandchild is another reason why some grandparents choose to obtain this type of coverage. Even if the mother and father are not able to properly care for the grandchild after the grandparents’ demise, the child will still have a base of financial security. Life insurance for a grandchild is an excellent way for grandparents to give their grandchildren a head start in life. The money that is set aside in the insurance policy will grow over time and in some cases the grandchildren will be able to borrow against the money if so desired. These are just some of the many reasons why grandparents want to obtain life insurance for a grandchild.

What Are the Benefits of Grandchild Insurance?

Whenever life insurance for children is mentioned, there are a number of people that are somewhat on the fence about its value. Some people wonder why should anyone take out life insurance for a grandchild? This is a very good question because it really gets people thinking about all the things that could happen that would put a child’s financial future in jeopardy. The whole purpose of life insurance for a grandchild is to allow grandparents to make sure that their grandchildren’s future is secure. This type of life insurance provides benefits over the course of a child’s entire life. This is incredibly beneficial as most people usually have to buy their own life insurance when they are older. Also, life insurance for a grandchild is a benefit because it allows the money to accrue and eventually the child is able to borrow against the money if so desired. This is a benefit for any child that may want to obtain money for educational purposes. Likewise, if at some point the child wants to obtain additional coverage, they can do so and usually there is no health exam required. All these examples are reasons why many grandparents choose to obtain life insurance for a grandchild.

Thus, one of the best gifts that grandparents can give to their grandchildren is a life insurance policy for a grandchild. It is one of the best ways to ensure that grandchildren are financially secure in the future.

Employment, what’s changed and what remains the same?

Protect Your Family with Life Insurance

Purchasing of Life Insurance is a decision you don't want to defer

Years ago, we could secure employment where you did your job and went home in the

evening to enjoy your family time. Now it’s a crazy life with a frantic pace, which we call progress in a 24/7 world.

Most employers are asking their employees to work longer hours, earning less money and with little assistance. We live in an age where we have instant access to emails, text messaging and abundance of information at the tips of our fingers. One would think with this we would have more time however it has been proven to have caused the opposite. Inundated with so much information, we sometimes find it more difficult to make a decision on the simplest tasks. Should I buy Samsung flat screen or Sony? Should I get a Ford or GM? Should I buy term life insurance or whole life insurance? If we continue differing making these decisions, it compounds the problem to the point where we get overwhelmed and run further away from the decision.

In the end, what TV or car to buy has little impact on our future. By deferring buying important life insurance coverage, you are putting your family at a great risk. Your family may not be able to have the basic needs, such as paying a mortgage, food, education and so much more.

My advice is simple – provide insurance. The need is real and the need for insurance will not go away. Whether you buy term insurance or whole life you will know that the basic needs for your family will be provided, if you are not there to provide . If you would like to obtain a instant online life insurance quote please feel free to visit our website.