Question

What is joint life policy? Why is it usually taken ?

Answer 1

Answer:

Joint Life Policy is the insurance cover that you get on a first - death basis. It is a pay out which an insurer receives in case of death of his other insured partner during the period. Usually, when you apply for a life insurance policy, you mention a nominee or beneficiary.

Answer 2

Answer:

$\textsf{Joint Life Policy (JLP) is a policy which is decided by}$

$\textsf{the partners of the firm on the joint lives of other partners.}$

$\textsf{The purpose of the joint life policy is to reduce}$

$\textsf{the financial burden on the firm at the}$

$\textsf{time of payment of a large sum to the}$

$\textsf{legal representative of the deceased partner.}$

$\textsf{The insurer receives the payout when after the death of his}$

$\textsf{insure partner. There are different methods for the}$

$\textsf{accounting treatment of Joint Life Policy.}$