Does It Make Sense for You to Buy a Joint Term Life Cover with Your Spouse?

Term plans are among the most popular insurance policies because they offer simple payouts based on the sum assured agreed upon when the policy was purchased. Many term plans also allow you to include your spouse as a joint life assured. Joint term plans are policies in which both spouses are policyholders. The majority of insurers let policyholders purchase a term plan with their spouses. Continue reading to learn about the meaning and advantages of choosing a joint term insurance plan over two individual term plans for a married couple. 

What are Joint Life Term Insurance Plans?

A joint life term insurance policy covers both the husband and the wife under one policy. Depending on the insurer, a joint life term insurance plan has a variety of features and benefits. The majority of joint term life insurance policies are single death payout policies, which means that the policy ends when one of the spouses dies and the death benefit is paid. 

However, some policies provide both spouses with death payments as well as regular income to the surviving spouse. Riders for severe illnesses, permanent disability, dismemberment, and accidental death are available on some joint life insurance plans. A joint life term insurance policy, regardless of the modifications and terms of the policy, provides a number of characteristics and benefits that are extremely beneficial to the couple and their children or dependents.

Does It Make Sense for You to Buy Joint Term Life Insurance with Your Spouse?

Purchasing a joint life term insurance plan can be quite beneficial. In most circumstances, purchasing joint life term insurance is less expensive than purchasing two separate term insurance policies. When both the husband and wife are insured under the same policy, it's also simple to maintain track of the plan. The waiver of premium feature is another benefit of a joint life term insurance policy.

The plan also has a number of other features that may be beneficial to both spouses, such as several premium payment options and multiple benefit options. This means that the policyholders' nominees can receive the sum promised as a lump sum payment, a monthly income, or even half a lump sum payment and half a monthly income. They can also choose whether they want the money assured paid out in a fixed quantity over time or as a growing income amount. Finally, under section 80C of the Income Tax Act, premiums paid on a joint life term insurance plan are tax deductible. The death benefit is tax-free under section 10 (10D) of the Income Tax Act.

Endnotes

Joint term insurance is appropriate for nuclear families with both working spouses who have the responsibility to pay off home and personal loans. It also protects the family financially in the event of the death or disability of any earning member of the family. Young couples with children and existing debts might consider purchasing a joint life term insurance policy to protect their children from potential misfortunes. 

While purchasing a combined term plan is far more convenient than purchasing two individual term plans for each spouse, determining which one is best for you can be tricky. It is always preferable to first evaluate your needs before buying insurance.

You may also like to read - How to Select the Best Term Insurance Plan for the Tough Times of Life?

Do You Need a Whole Life Plan or Is Term Life Cover Enough?

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.