Joint life insurance is a single life insurance policy that covers two people – usually couples or business partners. With this type of coverage, you and your partner share one policy instead of buying separate ones.
When one person dies, the policy pays out a tax-free lump-sum payment (also called the death benefit) to the surviving partner or other named beneficiaries. Joint life insurance may be a cost-effective way to help protect your loved ones or secure your shared financial obligations.
Whether you get a term or a permanent policy, you’ll have to decide between first-to-die or last-to-die coverage. Here’s how it works:
This policy pays out the death benefit when the first person covered by the policy dies. The surviving partner receives the payout and the policy ends.
This option works well if you:
The payout helps your partner maintain their lifestyle and meet financial responsibilities during a difficult time.
Last-to-die joint life insurance is a policy that pays out after both people covered have died. The death benefit goes to your named beneficiaries.
This option is commonly used for:
Since the payout happens later, premiums * are typically lower than first-to-die policies.
* Premiums refer to monthly or annual fees that you pay for having a life insurance policy.
Joint life insurance is a policy structure that can be applied to the two main types of life insurance products: term life insurance and permanent life insurance. Here's how each product type fits:
Not sure which coverage option is right for you? A Sun Life advisor can help you determine whether joint life insurance or individual policies better suit your needs. They can explain the differences between first-to-die and last-to-die coverage and answer any questions you have.
An advisor can help:
Advice on demand, right when you need it
Talk to a licensed Prospr by Sun Life advisor who can answer questions, help choose the right coverage and guide you as you apply for the right plan.
Dedicated advice for the long run
Build a long-term connection with a Sun Life advisor who can help you choose the right coverage and adjust it as your life evolves.
Choose first-to-die or last-to-die coverage.
Manage just one policy with one payment schedule.
Protects assets for beneficiaries.
Joint life insurance can be ideal for:
Here’s why:
Helps protect your shared financial obligations like your mortgage, debts, and living expenses. Helps ensure your partner can maintain their quality of life if something happens to you.
This coverage gives you peace of mind knowing your partner will have financial support during a difficult time.
Joint first-to-die life insurance helps cover buy-sell agreements and ensure business continuity if one partner dies. The death benefit can help the surviving partner buy out the deceased partner's share of the business.
Business protection benefits that come with joint first-to-die life insurance can help:
Joint last-to-die life insurance can be a strategic tool for preserving wealth across generations.
Joint last-to-die insurance can help with estate planning uses like:
You might wonder whether joint life insurance or two separate individual policies is right for you. Here's how they compare:
Joint first-to-die insurance is ideal for people with shared financial needs (e.g. mortgage, living expenses, etc.)
Joint last-to-die insurance is ideal for people who have health statuses that differ significantly.
Individual policies are ideal for people who:
The cost of joint life insurance varies based on several factors including both applicants' ages, assigned sex at birth, health and lifestyle habits (such as smoking status), and the type and amount of coverage they choose.
First-to-die policies are typically more expensive than individual policies since the insurer is more likely to pay out sooner.
Last-to-die policies are usually more affordable since the payout occurs later.
Both people’s ages and health profiles affect how much you’ll pay in premiums.
Read more:
No, you typically can't convert a joint policy to individual coverage. You'd need to cancel the joint policy and apply for a new individual policy with medical underwriting.
What this means:
No, individual policies can't be converted to joint policies. You'd need to apply for a new joint policy separately while keeping or cancelling your individual policies.
Your options:
In the case of divorce or legal separation, your options are to:
Important considerations:
Depending on your existing joint life policy, certain exclusions and rules may apply. Please connect with an advisor for more detailed information on how a divorce or a legal separation affects your coverage.
No, joint policies have one coverage amount that pays out once (when the first person dies or after both people die), depending on the policy type. If you need different amounts for each person, connect with a Sun Life advisor to go through all your insurance options.
Yes, both people must answer medical questions to apply for joint life insurance. If you have concerns about your health, please connect with a Sun Life advisor to go through all your options.
In the case of a joint first-to-die life insurance policy, both people must complete medical underwriting. Both need to answer health questions and may need medical exams. If one person has health issues, it can affect the price or approval of the entire joint policy.
In the case of a joint last-to-die life insurance policy, both people will have to provide medical evidence. If health issues are discovered with one person but another is insurable, then the couple may still be approved for a joint policy.
For more detailed information, please connect with a Sun Life advisor. An advisor can help you explore alternatives if health issues affect your joint application.
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This information is meant for educational and illustrative purposes only. Some conditions, exclusions and restrictions apply.
Reviewed by Amir Pourzakikhani
