Joint life insurance is coverage of two or more persons with the death benefit payable at the first death. Premiums are significantly higher than for policies that insure one person, since the probability of having to pay a death claim is higher for the insurance company.

Joint life insurance policies are most often used by spouses and business partners. It provides a type of coverage that is best suited to some kind of interdependent relationship, where if one of the key members or one of the partners dies the other(s) would be left out in the cold or up the river without a paddle sans the coverage.

There is a variation on this theme, however: there are joint life insurance policies that pay out on the second death, not the first. This type of joint life insurance policies might be used where two people who have high risk occupations have a similar interest in protecting the same people or assets. For instance, second-death life insurance policies can be used as trusts written in the name of a man and woman's children. When the second parent dies the children will receive the money without having to go through probate court.

Many may wonder if it is better to use a joint life insurance policies with its higher premiums, or just buy two individual life insurance policies each for the same amount of coverage. The answer depends on the circumstances.

For one thing, a single joint life insurance policies might cost more than a policy that covers only one death, but two individual policies might add up to more than that one joint premium, too. Financial planners usually recommend a joint life insurance policies in business settings, therefore, as businesses must find every means possible of saving money.

In fact, it is with regards to business considerations of one form or another that joint life insurance policies are the better option. Small businesses owned by just two partners, especially family owned businesses owned by husband and wife, can greatly benefit from a joint life insurance policies designed to make sure that the business can continue if one of them dies prematurely. And as the above mentioned instance with the children's trust alludes to, joint life insurance can work great as an estate planning vehicle so that assets don't need to be liquidated should parents die prematurely.

The Different Levels of Joint Life Insurance:

Level Term Assurance

This is the basic level of a joint life insurance policies. This simply states that if and when one of the policyholder dies then payout is made. But when the surviving spouse or partner in turn goes, then no more payment will be made even if the policy has still not lapsed.

Decreasing Term Assurance

This is also known as the mortgage protection insurance. This level of life assurance covers the capital as well as the interest of the mortgage, which are all payable when the one of the policyholders dies. It is called decreasing term assurance because the amount payable decreases as the mortgage debt is reduced due to the monthly amortization paid over time. Critical Illness

Critical illness is now being integrated into life insurance policies because of the discovery of modern medicines. Longer survival people of people with terminal diseases are now possible. However, they may not be able to go back to work to sustain their everyday living, not to mention their medications.

For this, joint insurance policies are going to pay a lump sum should either one of the policy holder is diagnosed of any critical illness such as heart attack, cancer, stroke, or multiple sclerosis.

These are the different levels of joint life insurance cover details. It then follows that the survivorship life insurance rates depends entirely as to which level you would like to avail of. Get different levels depending upon your coverage requirements.