Beneficiaries and joint life insurance

The spouse, children or even a business partner can be beneficiaries of the policy holder. Joint-life policies are often less expensive, and covers both members of the couple. These policies can be in first-death form, where the benefit is paid when the first of the spouses passes away. Joint life insurance can also be arranged in last-survival form; where the benefit is paid after the couple dies.
With a life-of-another policy one of the partners takes out a life insurance based on his/her  life. In case of death, the policy pays directly to the spouse without having to write any trusts. These policies require to prove there is an insurable interest in the person whose life is being covered. Spouses are assumed automatically to have an interest on each other’s lives. If a relationship breaks down, the policy will still pay out to the spouse.