Joint Life Term Insurance Policies: Know What They Are?
Life Insurances 203 views
When it comes to joint life term insurance policy, it would not be wrong to say that slowly it is gaining pace in India, however given the rising number of working men and women, and the crucial role they play towards contributing the house income. Actually, the life insurance policy was earlier known to be a safety net for the rest of the family, when the breadwinner of the family passed away. But, now it is giving the modern family structure where both the spouses are earning and are insured so that if something unfortunate happens to either of the spouse, the other remains financially stable.
Moreover, as far as joint insurance term policy is concerned, it covers both the spouses under a single insurance policy.
How does a Joint Life Term Insurance policy work?
Well, a joint life term insurance policy gives the coverage to two people instead of one. Moreover, to avail this type of policy, both the partners will have to shell out the premium for a particular tenure. And, within this duration, you can claim for the coverage amount in such cases where either of the spouse is dead. However, in case with such insurance policy, you cover will expire by following this. If the surviving spouse is interested to invest in a policy again, he/she needs to, but another plan for that.
Is a Joint Life Term Insurance Policy cost effective?
There is no doubt on the fact that joint life term insurance policy is good option to invest, if you are having a tight burden, and do not want to spend much to purchase two individual covers for you and your spouse. Not only this, in fact your premiums will be cheaper as compared to buying a separate insurance cover for the same amount of money. In addition to, you can reap the same benefits or in fact can get a better coverage.
Is a Joint Life Term Insurance Policy only for married couples?
Well, actually no. One can easily avail a joint life term insurance policy with his/her child as well as it is not necessary to get it with your spouse. And, in case of death, it will serve the same purpose just like your normal life insurance policy would and also safeguard the financial future of your child by offering medical cover, along with taking care education costs which are rapidly increasing day-by-day.
What are the benefits of a Joint Life Term Insurance Policy?
Moreover, it depends upon the policy that you going to purchase. One can have the full flexibility to select the kind of claim he/she wants to make. However,there are some policies that make pay outs for the entire amount depending upon the first claim, and following the death of either spouse after which the policy lapses.
Whereas, in other plans the nominees can select to make the separate claims on the death of the each policyholder. Well, you can go through with the conditions, and select the policy that suits your needs the best.
Well, you can go for a policy that will continue paying your surviving spouse a regular income followed by your unfortunate demise over a period of time apart from giving the assured cover. In addition to, there are some policies that give coverage against the accidents, amounting to the fatality.
More to the point, apart from being cost effective, this joint term insurance policy helps in minimizing your hassles of maintaining two different insurance policies together. You just need to pay one premium and can conveniently manage your account. In fact, it will give you peace of mind as both you and your spouse are adequately protected.
However, apart from its primary benefits, if you go for a joint life insurance policy, you can also avail the tax benefits on the paid premiums according to the Income Tax Act of 1961.
Furthermore, with a wide range of options to choose from, you can now easily weigh the pros and cons of every joint life term insurance policy, can buy one that suits you well.