What is the primary advantage of a Joint First to Die Term Policy over separate policies?

The primary advantage of a Joint First to Die Term Policy is that it provides a death benefit only upon the first death of one of the insured individuals. This type of policy is designed for couples, such as spouses, with the intention of providing financial protection for beneficiaries upon the death of the first insured.

When the first insured passes away, the policy pays out the agreed-upon death benefit, which can help cover expenses, debts, or provide a financial cushion for the surviving partner. This structure can often be more cost-effective than maintaining two separate individual policies, as the premium for a joint policy is typically lower than the combined cost of two separate term policies for the same individuals.

Other options, such as providing coverage for an indefinite period or accumulating cash value over time, do not apply to term policies as they typically feature set terms (e.g., 10, 20 years) and do not build cash value. Furthermore, a joint policy is generally not more expensive than separate policies; it usually provides a more economical solution for coverage needs when compared to purchasing individual term policies for each person.