Joint Life Policy – Marla and Tarun’s Story

Marla and Tarun were childhood sweethearts who married young. As they saw their friend’s buying homes and starting families, Marla felt strongly about building financial security for their future. Tarun is more carefree and prefers to live in the moment.

Concerned about unexpected hardship, Marla wanted life insurance. Feeling they were too young to worry about such things, Tarun saw the expense as unnecessary. They compromised on a single joint life policy that would pay out to the surviving spouse on the first death.

Fifteen years later, tragedy struck. Marla passed away unexpectedly, and the joint life policy was paid out to Tarun, ending the coverage.

Now a widower, single parent to their 7-year-old son and newly diagnosed with Multiple Sclerosis, Tarun faced overwhelming challenges. The life insurance payout helped with the mortgage, but ongoing expenses and his reduced work hours created mounting financial strain. His recent diagnosis made finding affordable new insurance nearly impossible.

Key Takeaways:

Joint life ‘first death’ policies payout once. This was the right choice for Marla and Tarun at the time, but it left Tarun vulnerable later on as he could not get cover due to changes in his health.

Life is unpredictable. Life insurance isn’t about expecting the worst; it’s about being prepared for it.

Reviewing and updating your insurance coverage as your life circumstances evolve is essential.

 

Published April 2024

Disclaimer: Seek professional advice for your personal financial decisions. This information is for illustrative purposes only and may be subject to change.