When it comes to term insurance, it is traditionally associated with single policyholder. However, as the society at large has changed, the necessity to include more than one people under a cover has become a norm. Joint Term Insurance policy specifically serves this purpose
As the name suggests, Join Term Insurance policy covers both husband and wife under the same policy. The policy will ensure financial stability at home when one of the insured passes way, the other can file a claim to get the coverage amount. However, there is no survival benefit after the plan attains maturity
Aside from married couples, any two people can purchase a term insurance policy to protect each other’s future. For example, a parent can buy a joint term insurance along with his child, in the event of the parent’s death; the child will get adequate compensation while growing up
How does Join Life Insurance policy works?
A Joint life insurance when understood properly can give value to your hard-earned money by turning them into instruments and providing it to your family in your absence
Most Joint Life Insurance policies provide coverage to the policyholder’ s spouse upto 50% of the sum assured value
In the event of death of primary policyholder, then his spouse gets a fixed payover at scheduled interval, according to the terms. For one-shot settlements, the sum insured is distributed to the surviving partner in accordance with the policy terms
Some companies may even waive off the premiums, in the event policy holder’s demise to reduce the financial burden
In the event of death of both the policyholder’s then the settlement amount is given to the legal heir
What are the types of Joint Life Policies?
If you are looking for joint life policies with comprehensive set of cover, you have several options available much likes a regular insurance plan. It can be endowment plan or straightforward term plan
- Joint Term Plan
Similar to regular term plan, you and your spouse need to pay a premium for a certain period of time under a policy. In the event of death of any one among the two, the survivor will get the benefits
- Endowment Plan
The endowment plan provides insurance and investment benefits. It will be valid only for a certain amount of time. After the expiry of the coverage term, the company will save you a sum of money. In the event of death of one of the policyholders, the survivor will receive the cover and the endowment benefit as agreed upon.
Why should you opt for Joint Life Insurance?
A Joint Life Insurance has several advantages. Mentioned are a few benefits that you get by opting for a Joint Life Insurance.
It is less expensive
The cost associated with Joint Life Insurance i.e. premiums are much advantageous compared to single life insurance policy. Also, you can enjoy the benefit of dual cover
Covers the income in the event of insured’s death
In the event of death of the insured, the beneficiary can receive the sum assured which can act as a stream of income for the other.
Tax Advantages
Premiums paid for the policy are eligible for tax deduction under 80 C of IT act. Aside from that the death benefit received by the beneficiary is exempt from tax under Section 10(10D)
