One of the types of term insurances in India for couples is a joint term insurance, wherein life insurance cover is provided to both spouses under a single insurance policy.
With evolving times, especially with the number of working couples rising, the need for joint life covers is also increasing. More people are buying bigger life insurance covers, post COVID-19. This means people are not just looking for protection, but adequate protection.
Various insurance companies offer a host of term plan benefits, and couples can opt for a suitable plan based on their specific needs.
Some of the reasons why couples should go for joint term insurance are listed below.
- Dual-benefit of full cover for life assured and 50% cover for spouse : A joint life insurance policy is generally more affordable than two individual policies. With term insurance plans offering joint coverage for spouses, the additional benefit will be paid out in case of death of the primary policyholder. Once the primary life assured dies, the base sum assured is paid and the surviving spouse will be covered under the policy with 50% of the sum assured.
- Cost-effective life insurance coverage for both partners: Joint term insurance will often be less expensive than buying a separate term plan for each spouse as single premium payments would cover both the husband and the wife. Also, keeping track of a single insurance plan would be much more hassle-free and cost-effective.
- Term plan premium waiver upon death of life assured: With joint term insurance, the couples can avail of a waiver of future premium. If the primary policyholder dies during the policy term, the surviving spouse will receive the sum assured as a death benefit and will have no obligations to pay future premiums to maintain the life cover.
- Secure the financial future of children: On the off chance that the parents pass away during the policy term, their children as beneficiaries would receive a sum assured as a regular monthly income or a lump sum. This would help the dependents meet their financial needs and have a secure future.
- Maintain the lifestyle of the family: If both the spouses are earning members, the family will be dependent on their income to fulfil all the financial needs. To maintain this standard of living even after the policyholder's unfortunate demise, term insurance would aid the family and ensure their financial needs are taken care of.
- Tax benefits as per prevailing norms: Term insurance in India is eligible for tax benefits under different sections of the Income Tax Act,1961. Couples can avail of tax benefits under Section 80C and on producing a renewal premium receipt. Also the sum assured received is covered under Section 10(10D).
With an unpredictable future, couples should unquestionably opt for a joint term insurance plan to prepare for unforeseen contingencies. Every couple should carry out an appropriate term life insurance comparison to understand the various benefits offered by different term plans.
Deciding on a joint term plan for you and your spouse can be difficult, as it's important to understand your specific needs before approaching an insurer. However, it's always advisable to understand your requirements and compare different options before making a final decision. Thus, to get adequate life coverage and ensure future financial security for themselves and their family, joint term insurance would be a suitable decision for every couple.
Chirag Iyer - BFSI Enthusiast
Chirag is a writer and an avid reader who loves to drink coffee! His other interests include boxing, karate, and singing.