What are joint life term insurance policies?

Joint life term insurance policies are gradually gaining pace in India, given the rising number of working women and the vital role they play in contributing to the household income. Basically, a life insurance policy was a safety net for the rest of the family when the main earner of the family passed away. Today the situation is different, given the modern family structure where both the spouses are earning, the need is to ensure that both husband and wife are insured so that if anything happens to either of the spouses, the other remains financially stable.

Joint life term insurance policies provide coverage for two people instead of one. For joint life term insurance policies, both the partners must shell out premium for a fixed tenure. Within this duration, you can make claims for the coverage amount in case of death of either of the spouses.

Here are the benefits of Joint Life Term Insurance Plans:

-        Depending on the policy that you purchase, you have the flexibility to choose the kind of claim you want to make. Certain policies make pay outs for the entire amount based on the first claim, following the death of one spouse, after which the policy lapses. In other plans, the nominees can choose to make separate claims on the death of each insurance holder.

-        You can opt for a policy which will continue paying your surviving spouse a regular income following your demise for a period of time apart from providing the assured coverage. 

-        Certain policies provide coverage against accidents amounting to fatality.

-        Joint Life Term Insurance plans are definitely a better investment option if you are running on a tight budget and do not want to spend much on buying two individual covers for yourself and your spouse, making it very cost effective.

-        Joint life term insurance policies will lessen your hassles of maintaining two separate insurance policies. You will have one premium to pay and can easily manage your account. Also, it will bring you peace of mind when you are assured that both you and your spouse are adequately protected.

-        It’s not a hard and fast rule to buy joint life term insurance policies with your spouse. You can easily buy one with your child. In case of death, it will serve the same purpose as your life insurance policy would, and safeguard your child’s financial future, provide medical coverage and take care of his or her education costs, which are rising exponentially.

On buying a joint life insurance plan you are also eligible for availing tax benefits on the premiums paid as per the Income Tax Act of 1961.