What is joint life insurance?

This article was originally published on May 7, 2018 and was updated on February 11, 2025.

When you think of life insurance, you likely imagine a policy that covers a single person - and that is the most common option. However, there are several different types of life insurance designed to fit different needs, including joint life insurance.

What is joint life insurance?

Joint life insurance is a life insurance policy that insures two people under one plan. There are two forms; ‘joint first-to-die’ and ‘joint last-to-die’. 

Joint first-to-die pays a death benefit when one person on the policy passes away. In the case of a married couple, this benefit could be used to pay for funeral expenses, or replace the income of the partner who has died.

Joint last-to-die pays a death benefit only when both people on the policy pass away. This benefit is generally used to pay down debts left by the deceased, or to pay any required tax obligations.

Also read: What's the point of joint last-to-die life insurance?

Joint life insurance vs. combined life insurance

It’s important to understand the difference between combined life insurance and joint life insurance. Combined life insurance is when you and your partner both get a single life insurance policy from the same company at the same time. It generally saves you some money, as the administrative fees are lower. Joint life insurance, on the other hand, covers two people with the same policy. The underwriting process is different, and the premiums can be very different as well.

With joint life insurance, the mortality rates for each person get combined using actuarial formulas.

Note: Joint life insurance isn’t a product

You can’t buy something called “joint life insurance.” You get conventional life insurance:

• Temporary products such as Term 10, Term 20 or Term 30
• Permanent products such as Term 100, whole life or universal life

Instead of selecting single life mortality rates, you chose joint life. Let’s look at the uses.

Joint first-to-die 

The death benefit is paid at the time of the first death. This is useful for a shared obligation like repaying a mortgage. The alternative is getting two single life policies, which usually costs more. Here are examples for healthy non-smokers of various ages:

(Results may differ by company)

Since the probability of either person dying is higher than only one dying, the equivalent age is higher than the oldest age.

Joint last-to-die

The death benefit is paid at the time of the last death. Assets such as RRSPs and a cottage can transfer to the surviving spouse tax-free. This defers taxes until the second death. Joint last-to-die is perfect because the death benefit is paid when the bills are due.

Here are examples for healthy non-smokers of various ages:

(Results may differ by company)

Since the death of both lives is further away than the death of either life, the equivalent age is lower than the youngest age.

The bottom line

Joint life insurance has less flexibility than separate single life contracts. That’s the tradeoff for the savings you can make. With a joint policy, each life has the same amount of coverage. If that’s not ideal, single life plans may be better. Another solution is to get a joint policy that satisfies the overlapping requirements and adding riders for the lives requiring more coverage.

Remember, just like joint bank accounts and joint mortgages, if things go south in your relationship, having money wrapped up in a joint life insurance policy can make things complicated.

It’s also not unheard of to take out two joint life policies. A joint first-to-die policy could replace the income of a partner, while a joint last-to-die policy can help pay off debt when both partners pass. The best thing you can do is to compare life insurance quotes and speak to a expert to asses your needs.

Also read:

• Can you sell a life insurance policy?
• What’s the point of joint last-to-die life insurance?
• Think about buying life insurance soon rather than later
• The dos and don’ts of buying life insurance