What is joint life insurance for couples in Canada?

This article was originally published on May 7, 2018 and was updated on July 25, 2025.

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

What is joint life insurance?

Joint life insurance is a type of life insurance policy that covers two individuals under a single plan. It’s most common among married couples and common-law partners. What many Canadians don’t realize is that joint life insurance isn’t a separate product you buy. It’s a coverage option within a standard life insurance plan where you choose joint life mortality rates.

Joint first-to-die life insurance

Joint first-to-die pays a death benefit when one person on the policy passes away. The benefit is paid to the surviving policyholder and is often used to cover funeral expenses, mortgage payments, and replace the deceased partner’s income. Once the first partner dies, the benefit is paid and coverage ends. 

Unlike standard life policies, insurance companies use the equivalent single age (ESA) to calculate premiums for joint-first-to-die plans. This method combines the ages of both partners to assess risk.

Since the likelihood of either person dying first is greater than the likelihood of a single person dying on an individual policy, the equivalent age is higher. This means that the joint premium will likely be more expensive than purchasing an individual policy. Essentially, the higher the equivalent age, the more you’ll pay. 

The table below shows examples of how the equivalent age affects premiums for healthy non-smokers. Results may differ by company.

 

Joint last-to-die life insurance

Joint last-to-die pays a death benefit only when both people on the policy pass away. This benefit is paid to the designated beneficiary and is generally used to cover debts left by the deceased or to pay outstanding tax obligations. Coverage doesn’t end when the first partner passes away. To maintain the policy, the surviving policyholder must continue paying premiums. 

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

One advantage of joint-last-to-die is the timing of the payout. Since the death benefit is only paid after both policyholders pass, it can help cover estate taxes and allow assets, such as RRSPs, to be transferred tax-free to the beneficiary.

Like the joint-first-to-die method, the equivalent age is used to calculate rates. Since both policyholders must pass away before the death benefit is paid, the expected payout date is further in the future, which lowers the risk for the insurance company. This means that the equivalent age used to calculate rates will be lower, making premiums more affordable.

The table below shows examples of the ESA for healthy non-smokers. Results may differ by company.

 

Why do couples choose joint life insurance?

Several benefits come with choosing a joint policy instead of opting for two individual plans. These include: 

• Cost savings: Policyholders only need to pay one premium per month under a joint life insurance plan, which makes it more affordable than paying for two separate policies.
• Choice: Joint life insurance can be purchased as either term life insurance or a permanent life insurance product, like whole life or universal life insurance. The versatility allows you to choose the option that best fits your needs, whether you want coverage for your entire life or a set period. 
• Estate planning: A joint life policy can be a tool for future planning, especially if you purchase a last-to-die life insurance plan. This ensures the beneficiary receives the death benefit after both policyholders have passed away, which can help cover costs such as estate taxes and other expenses.

When is choosing joint life insurance a good idea?

Joint life insurance may be right for you if:

• You and your partner share similar financial responsibilities, such as paying the mortgage. 
• You are both healthy, of a similar age and have similar coverage needs.
• You want to prioritize affordable life insurance coverage.
• You have estate planning goals.

When is choosing joint life insurance not a good idea?

On the flip side, a joint plan may not be right for you if: 

• You have different financial responsibilities, and losing one partner’s income would create a large financial strain for the survivor.
• You are of different ages, have different health conditions, and need varying levels of coverage. For example, if one partner has a pre-existing condition, a joint premium could be higher than purchasing two individual policies.
• One partner wants coverage to continue after the other person passes away.
• You want the option to convert the policy in the future.

While a joint policy can be an excellent option for some couples, there are downsides: 

• In the event of a divorce or separation, deciding what to do with the policy can be challenging, and you may need to cancel coverage altogether. 
• Insurers use the ESA to calculate premiums. If one policyholder is much older than the other, it could make the premium more expensive.
• Joint life insurance policies only pay one death benefit, either after the first death (joint-first-to-die) or after both people pass (joint-last-to-die). If the surviving partner still wants coverage, they’ll need to purchase an individual policy.

What’s the difference between joint and combined 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 covers two people with the same policy. The underwriting process is different for each, and the premiums can be very different as well.

Choosing the right policy for your needs comes down to your family’s financial goals and potential debts that could be left behind. To make the best decision, compare life insurance quotes online to determine which policy offers the right level of coverage at the best price.

The bottom line

A joint life insurance policy can be an excellent choice for couples looking for affordable coverage. However, the cost savings come with trade-offs. For instance, the equivalent single age can make premiums more expensive. Each policyholder also has the same amount of coverage, which may not always be ideal if one partner has a pre-existing condition that requires more extensive coverage.

In addition, 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. In these cases, opting for individual policies may be the better option. 

The best thing you can do is to compare life insurance quotes and speak to a broker to assess your needs.

Also read:

• Can you sell a life insurance policy?
• Think about buying life insurance soon rather than later
• The dos and don’ts of buying life insurance