Gone are the days when the breadwinner of the house would only be the male member. These days, we find almost every woman in the urban areas works on equal footing with their male counterpart. This means the households now depend on both spouses. This is why both spouses can buy a joint term insurance plan. As the medical expenses and chances of critical illnesses are increasing by the day, it has become quite important to get a joint term plan for husband and wife.
What is joint term insurance?
Joint term insurance is a term life insurance plan that provides insurance coverage to the husband as well as the wife under a single policy. There are several types of joint term insurances for couples that come with a wide variety of features as well as benefits, with minor differences from one insurer to the other. Some of the insurers pay out the cover after the death of one of the spouses, while other insurers provide a death benefit for both spouses. There are several benefits of buying a joint term life insurance plan that is not only advantageous to the couples but also their children.
Advantages of joint life term insurance
- In the majority of the cases, joint term life insurance is lesser-expensive than buying two-term plans separately.
- It becomes way easier for the couple to keep a track of the plan when both of them are covered under a single plan.
- With a joint life term insurance plan, you get a feature like a waiver of premium. If the joint life insurance has double payouts; if one spouse dies, the other will get the lump-sum death benefit payment along with a waiver of the premium, which will come with continued life coverage for the spouse that is surviving.
- Premiums paid on one such term insurance policy help in tax deductions under section 80C. The death benefit that is received can be exempted from tax under section 10 (10D) of the Income Tax.
When is the right time to buy joint term life insurance?
The best time for couples to buy a joint term insurance plan is when they start their married life. A family where both the spouses are working can purchase a joint term life insurance. And, if you have kids and have home loans or personal loans, then you must buy a joint term insurance plan. This kind of plan can help the kids against any future mishap.
Things to consider before purchasing a joint term insurance plan
- While you are looking for the best joint term insurance plan, you must go through all the clauses mentioned, before you finally sign the papers. There are two types of joint term insurance plans; one which provides cover for only one spouse if he/she dies and the premium can then be waived off, the other type provides cover for both the spouses, once they pass away. Therefore, you need to check beforehand, which one you are signing.
- You must be sure about your compatibility with your spouse. Having a divorce is quite common these days, and if that happens, the primary insured will have to take the burden of the premium.
- There is one primary insured and one secondary insured. While you buy a joint term life insurance, the insurance company will determine the sum assured by assessing the age, health conditions, and lifestyle of the primary insured.
There are plenty of benefits of getting a joint term insurance plan which can take care of your family’s insurance needs. After this policy, there is no need for you to keep worried about your child’s wellbeing, even in case both you and your spouse don’t make it to the future. Get a complete guide to term insurance and for the additional coverage, you can also buy an additional term insurance plan for individual partners.