All You Need to Know About Joint Term Insurance

A married couple begins a new life after marriage. It's a journey where two individuals come together to start a new life and work as a team. A couple deals with their challenges together and shoulders specific responsibilities in a household. On this journey, it is essential to be ready for any mishaps or unfortunate accidents as well. Recent times have heightened the importance of being well-equipped for life's unpredictable circumstances. It has reiterated the vitality of a term insurance plan for a couple to steer through challenging situations in life. 

Term insurance is a simple life insurance plan that provides financial assurance of a predetermined pay-out to a policyholder's nominees in the event of their untimely demise during the term of the policy. As the needs of families evolve with time, insurers have started to offer term insurance policies with joint life coverage plans. These plans are an intelligent decision to choose for couples as they provide long-term security in unforeseen events. 

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What is a Joint Term Plan?

A Joint Term plan is an insurance policy that covers two spouses under one policy. It covers the couple as one joint unit. In the event of an untimely death of either one of the spouses, the remaining spouse gets the lump sum as a death benefit. Also known as a term plan, Joint Term insurance policies are more of a backup option that provides substantial coverage in the event of the demise of one of the spouses. 

Simultaneously, if a spouse fails to survive the term plan, the other spouse is shielded by the life cover. If neither of the spouses survives the term plan, their nominees (mostly children or parents) receive the sum assured based on the policy terms. Because Joint Term insurance does not have maturity benefits, they are affordable than other investment-linked life insurances. Hence, it's a beneficial option for young couples as the premium is lower at an early age. 

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Benefits of Joint Term Insurance

Below are some of the prime benefits of having Joint Term Insurance: 

1. It is a good option for households where both partners work and share responsibilities. In a home that runs on the earnings of both members, the absence of one may majorly burden the other. Joint term plans come to rescue the remaining spouse in such situations and help them soften the blow financially.

2. These days, insurers also allow non-working spouses to buy a standalone term plan, based on the income of the earning spouse and existing life insurance policy's sum assured as proof.

3. Managing two separate policies means more effort. With a joint term plan, both spouses are covered under the same policy. Hence, keeping track of the policy becomes simple, and it's also easier to remember the renewal date.

4. Joint term plans are very affordable, especially for newly-wed couples who start a new life together. It allows them to prepare for any unforeseen accidents that may cause financial instability.

5. Premiums paid on joint term plans are eligible for deductions under Section 80C of the Income Tax Act. Additionally, the life cover received upon the untimely death of a spouse is tax exempted. However, tax benefits of term insurance are amended from time to time.

Joint Term plans are the least complicated and most holistic type of life insurance for couples. Its popularity stems from the fact that it comes with a lower premium and covers the financial security of both partners. Additionally, it offers coverage in the event of the unforeseen demise of either of the insured. So joint term insurance is one of the most secure ways of ensuring financial support for your loved ones in case of an unfortunate accident. 

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