Yes, two people can be on the same life insurance policy. A life insurance policy typically covers the insured person and can have multiple beneficiaries, i.e. direct beneficiaries and/or contingent beneficiaries.
When two people are on the same life insurance policy, the insurer typically looks at their combined health risks and life expectancy. Joint life insurance policies may offer significant cost savings and provide a valuable way to protect your family.
Here are some key points to consider if you're thinking of a joint life insurance policy:
• Insured Lives: The policy typically covers both insured parties and pays out a lump sum if either one of the persons pass away.
• Cost Savings: As the insurer considers both parties together, jointly insuring can result in costs savings.
• Beneficiaries: Generally, you can choose the same or different beneficiaries for each insured person.
• Protection Needs: Don't just opt for joint life insurance because of the cost savings - weigh your protection needs comprehensively and consider how much each person needs to be insured for.
• Other Coverage: It's important to remember that a joint life insurance policy is not a substitute for other coverage such as income protection or total and permanent disability (TPD) cover.
I hope this information helps. If you would like to read more about joint life insurance policy, check out this page on Finder. https://www.finder.com.au/joint-life-insurance