Should you opt for a joint term life insurance for husband and wife?

Joint-term insurance provides coverage for both husband and wife under a single policy that comes with various features. It is a comprehensive life coverage for a couple over a period of time that helps them to get high protection in their life. 

Let us take an example of Mr. Sharma who bought a joint-life term plan for a sum assured of Rs 50 lakhs and later included his wife’s name in the plan. Since both are working in a private company, they decided to choose a term plan which works well in their budget. Unfortunately, Mr. Sharma passed away in a road accident, and his family got into deep trouble. However, Mrs. Sharma got a sum assured of Rs 50 lakhs from the insurer due to a joint-life term insurance plan. 

If you are a married couple, buying a joint-term insurance policy is the right option for you to lead a comfortable life. This is because it allows you to ensure financial freedom from potential threats. 

What is a Joint Term Insurance Plan?

The joint-term insurance for husband and wife is a single policy that provides several advantages:

1. You can pay a single premium amount for this plan.
2. In this plan, your wife will receive the death benefits upon your death.
3. In the same way, you can get the same benefit when your wife dies before the policy term ends.
4. In joint-term insurance, both of you are the policyholders as well as the beneficiaries. 

The joint term insurance plan assures your children more security when you and your spouse won’t survive. For example, some policies allow you to get a regular income in addition to the death benefit that provides ways to live a trouble-free life. However, the plan will get affected in case of divorce, and you need to contact your insurance provider to know how to split your premiums and benefits or at worst terminate the policy and buy a new one. 

Types of Joint Term Insurance Plans 

Before choosing a joint-term insurance plan for husband and wife, it is wise to know the different types offered by the insurance companies. This will help a lot to choose the right one which best suits your income. In addition, the plan provides different premiums, and you can compare them with more attention to pick the best prices. 

1. 1. Joint-Term Plan
   2. Joint-Endowment Plan

Joint-Term Plan

It has typical term life insurance plan features. If your spouse is non-working, this plan is the right option because it works on a first death basis. However, your nominee will receive the death benefit when both of you are not alive. Therefore, you should buy a new plan for further coverage when your partner passes away. While purchasing this plan, you should read the terms and conditions that will help meet essential needs in the coverage process.

Joint-Endowment Plan

This plan has dual benefits of investment and insurance, letting you generate high income. At the same time, it is valid only for a certain period until you retire from your work. An insurance company will pay you some amount after this. It is known as an “endowment” that enables you to receive a lump sum amount. On the other hand, you or your spouse will get the amount only after the policy expires. There is no need for you to pay any premium amount after the first death. You are also eligible for the maturity benefit after choosing this plan.

Advantages of Joint Life Term Plans

• Cost savings: The primary benefit of a joint-life term plan is that it enables you to save more money. Buying two separate policies can cause a heavy financial burden while paying the premium. Since a joint-life term plan is a single plan, you pay only one premium for covering two people, which allows you to reduce the expenses to a large extent. 
• Income replacement: Certain insurance companies provide joint-life insurance for married couples with a fixed amount as a regular monthly payment apart from the sum assured as a death benefit. This will help a lot to ensure financial security when your partner dies. In other words, it allows you to provide a supplemental income that gives ways to overcome unwanted problems. 
• Increased sum assured: With joint-life term plans, you get a high sum assured. So, make sure that you choose the right plan that suits you and your spouse after knowing the details. 

Top Reasons to buy Joint Life Term Insurance Plans

• The premiums of joint-life term insurance plans are low, allowing policyholders to pay them without any hassles.
• Provisions for getting a fixed amount to your spouse 
• The plan is best suitable for married couples. 
• Allows your spouse to get a lump sum as a death benefit. 
• The joint-endowment plan offers you maturity benefits. 
• It is a single policy allowing you to avoid buying individual insurance policies. 
• You can avail of tax benefits on premiums paid. 
• Minimal paperwork and maximum convenience while applying for a plan online 
• Some insurance providers offer riders to you, and you can check out their details online to get additional coverage.
• The regular income feature provided by the plan allows you to fund your child’s education and other expenses. 
• Easy claim settlement process that allows your beneficiaries to receive the amount as soon as possible.

If you consider buying joint term life insurance, you can visit iiflinsurance.com, do thorough research, get quotes for the same from various top insurers, and make the buying decision.