What is the benefit of joint life insurance?

The benefit of joint life insurance lies in its ability to provide coverage for two or more named insured individuals under a single policy. This type of insurance can be particularly advantageous for couples or business partners, as it allows both individuals to be insured together, often at a lower cost than if they each took out separate policies. In the case of a claim, the policy typically pays out upon the death of the first insured person, helping to secure financial stability for the surviving partner or beneficiaries.

Each of the other options does not accurately depict the primary purpose of joint life insurance. For instance, the option that states it pays out benefits only after the second insured dies describes a survivorship policy, which is a different type of coverage altogether. The option referencing double indemnity is associated with specific policies that provide an increased payout due to accidental death, which is not a fundamental feature of joint life insurance. Lastly, the focus on providing benefits only to children of the insured does not reflect the broader intended purpose of joint life insurance, which aims to protect the insured individuals and their specified beneficiaries.