Joint life term insurance plansare gradually gaining pace in India, given the rising number of working women and the vital role they play in contributing to the household income. Basically a life insurance policy was a safety net for the rest of the family when the main earner of the family passed away. Presently, given the modern family structure where both the spouses are earning, the need is to ensure that both husband and wife are insured so that if anything is to happen to either of the spouses, the other remains financially stable.
Joint insurance term policies cover both the spouses under single insurance policies.
How do Joint Life Term Insurance policies work?
In a nutshell, joint life term insurance policies provide coverage for two people instead of one. For joint life term insurance policies, both the partners will have to shell out the premium for a fixed tenure. Within this duration, you can make claims for the coverage amount in case there is death of either of the spouses. However, as is the case of term insurance policies, your cover will expire following this. In case the surviving spouse want to invest in a policy again, he or she will have to buy another plan.
Are Joint Life Term Insurance Plans cost effective?
Joint Life Term Insurance plansare definitely a better investment option if you are running on a tight budgetand do not want to spend much on buying two individual covers for yourself and your spouse. Also, your premiums will be cheaper than buying separate insurance covers for the same amount of money, whereas you can reap the same benefits or even enjoy a wider coverage than you otherwise would.
Are Joint Life Term Insurance Plans only for married couples?
No. You can easily buy joint life term insurance policies with your child as well and not necessarily with your spouse alone. In case of death, it will serve the same purpose as your life insurance policy would and safeguard your child’s financial future, provide medical coverage and take care of his or her education costs, which are rising exponentially.
What are the benefits of Joint Life Term Insurance Plans?
Depending on the policy that you purchase, you have the flexibility to choose the kind of clam you can make. Certain policies make pay outs forthe entire amount on the basis of the first claim, following the death of one spouse, after which the policy lapses. In other plans, the nominees can choose to make separate claims on the death of each insurance holder. You can study the associated conditions and choose the policy that would suit your needs.
You can opt for a policy which will continue paying your surviving spouse a regular income following your demise for a period of time apart from providing the assured coverage. Also, certain policies provide coverage against accidents amounting to fatality.
Apart from being cost effective, joint life term insurance policies will lessen your hassles of maintaining two separate insurance policies. You will have one premium to pay and can easily manage your account. Also, it will bring you peace of mind when you are assured that both you and your spouse are adequately protected.
Besides the major benefits listed, if you purchase a joint life insurance plan you are also eligible for availing tax benefits on the premiums paid as per the Income Tax Act of 1961.
With a wider range of options to choose from in India now, you can weigh the pros and cons of each joint life term insurance policy and buy one accordingly.