In a joint life policy, what is true about the premium payment?

A joint life policy covers two individuals under one insurance plan, combining their risks into a single policy. Typically, the premium for a joint life policy is lower than the total of two individual whole life premiums for several reasons.

The risk assessment for joint life policies often creates a more favorable rate due to economies of scale. The insurer is able to spread the risk across two lives, potentially resulting in lower rates because they are factoring in the likelihood of a payout based on the combined life expectancy of both insured individuals. This is why the premium for a joint life policy is usually lower than the sum of two individual policies.

In contrast, each insured paying their own premium would imply separate policies, which wouldn't reflect the characteristics of a joint life policy. Adjusting premiums annually is also unlikely, as these policies generally have level premiums for the life of the policy unless otherwise noted. Premiums based on the age of the older insured provides a basis for pricing but does not necessarily mean that the joint life policy premium is lower than individual premiums.