In today’s various life insurance companies have been recently started introducing the joint term insurance plan for married couples. Logically, purchasing a single term plan is a low-cost alternative as compared to two separate plan policies. In opposition to a regular life insurance policy plan in which a nominee or recipient is introduced, while in joint life insurance policy both the partners are the owners as well as the recipients. If anything has happened to one partner then the other will be getting the life cover’s benefit.
Joint Life Insurance
In our culture marriage is known as a divine partnership between two individuals, in which they make promises to one another to share their whole life even if the time is good or bad. So, it became your responsibility to secure your partner from any incidents in life, and always being with them whenever they need. Similarly, sharing a life insurance policy plan is just another way to protect your partner to ensure that you can provide for one another.
The joint-life insurance plan or joint-life policy is the policy cover that you will get on a first death basis. It is a payout that is received by the policyholder in case of the death of another policyholder during the policy period. Normally, whenever you applying for any life insurance policy, you have to mention the nominee or recipient. But in the joint life insurance policy, you and your partner both are the recipients as well as owners of the joint-life policy.
Types of Joint Life Insurance Policy
Joint life insurance or joint-life policy also has two categories just like an individual life insurance policy, it may be either a joint term plan policy or a joint endowment plan. The only difference is that the joint-life policy covers two lives in place of one.
Joint Term Plan
In this type of joint term insurance plan in India, both the partners pay a premium for a fixed amount of period. In case of death of the first person, the second one can claim for the life cover amount, after which the cover is terminated.
Simply, with this plan, death benefits are received by the nominee after the first person dies. Typically, it is acquired for earning substitutes for a juvenile family, with the surviving consort named as the recipient.
For example, if both the partners are earning equal, first-to-die policy will help the living partner to support a family without changing their lifestyle. Although, once the assets are hand over to one person, nothing remaining coverage is left for the second person. If they want to resume their life insurance protection to provide benefits for the couple’s children, they have to apply for the new joint life insurance policy coverage. But joint term insurance plan in India is less used today’s and guardians did not recommend this type of coverage plans.
Joint Endowment Plan
An Endowment plan policy also has investment features. Like a term plan, it is viable for a specific period, until the insurer’s retirement. After this period, the insurance company gives the insurer a certain amount, and this amount is called “Endowment”.
In this type of joint life insurance policy, a certain sum amount is given to the couple after the termination of the policy by the insurance company. This joint term insurance plan for the married couple holds good even in case of death of one of the partners, the other one receives the cover amount after the partner’s death. And the Endowment amount is paid to the recipient on the maturity of the pre-decided period.
After the death of the first person, the premium payments of this type of joint life insurance policy are not continued. PNB MetLife, Aegon Religare, State Bank of India (SBI) Life have been recently introduced these type of joint life insurance policies which covers married couples in one policy. While PNB MetLife and Aegon Religare provide this facility as a part of an online term policy, SBI’s life insurance policies offering are an endowment plan.
Difference between a joint first-to-die term policy and individual term policy
|Joint First-To-Die Term Policies||Individual Term Policy|
|To assure both individuals, one policy gives a coverage plan to both individuals.||In this, the company provides a separate policy to assure both the individuals.|
|The coverage amount which will be given to the individual remains the same for both of them.||In this term policy, the coverage amount is different for each of you.|
|The joint-life policy is expired after the claim. If the survivor wants to continue the life insurance policy, they will have to apply for the new joint life policy.||In this, even though the diminished policy paid a claim, the survivor’s policy remains alive.|
|The amount of premium for joint life policy is 15% less than if you buy two single policies on the same amount of coverage.||In this, if you buy the same coverage amount plan, two separate policies cost more than one joint life policy.|
Joint Term Insurance Plan in India
A joint term insurance plan in India gives you a coverage amount beyond the payment of the premium. In this joint term insurance plan for married couples, the insurer and the consorts have come under one single contract. Just like a planned term insurance policy, a joint term insurance plan in India did not come with any maturity advantages.
Therefore, on the termination of the insurance policy, you and your consort’s termination is covered by the term insurance policy cover and obtain no maturity benefits. On the other hand, if you or your consorts do not exist according to the insurance policy’s terms, the death benefits will be paid off by the policyholder.
Even though, the joint term insurance plan in India is more popular among married couples. Also, it is not only limited to married people alone. But the joint term insurance plan allows business partners also, who may be related or not to each other, to enjoy the advantages of the joint term insurance plan in India.
How does the joint term insurance plan in India work?
If you are thinking about how a joint term insurance plan works in India, the following points can help you to understand how this type of insurance policy works.
- This joint term insurance plan in India works on the main principles of the first death basis.
- As per this principle, if any one of the policyholders passes away in the middle of the policy term period, the surviving one will get the covered amount in the form of a death benefit.
- However, in any inappropriate situation where both the policyholder died simultaneously, the beneficiaries or the recipient receives the coverage amount as the death benefit.
- Most joint term insurance plans in India in the market offer the spouse up to 50% cover-up of the assured sum on the death of the primary insured.
- According to this plan, you are eligible to get the amount of Rs.20 lakh as the death benefit. On the other hand, your spouse is permitted coverage of Rs.10 lakh as a death benefit.
How do joint term insurance plans in India differ from regular term insurance plans?
Even though they are all most similar, joint term insurance plans is differ from regular term plans in certain ways, as mentioned here.
Quantity of insurer
The basic difference between the joint term insurance plan in India and a regular term insurance policy is the quantity of the policyholders permitted. The traditional term insurance policy gives life coverage to only one policyholder, while the joint term insurance plan policy supports two-person and offers two life covers.
Type of contract
In a regular term insurance plan, two separate contracts are made for each of them. But in a joint term insurance plan in India, you can get life covers for you and your children in a single contract with the same terms and conditions.
Another difference between the joint term insurance plan policy and the term insurance policy is the death benefits. In the case of a term insurance policy, the coverage amount is received by the nominee or the beneficiary, while in the case of a joint term insurance plan in India, the coverage amount is paid to the survival insurer. The death benefits are received by the recipient of the legal heir in the event of the death of both the insurers in a joint term insurance plan in India.
Joint term insurance plan for married couples
First of all in this type of joint term insurance plan in India both the partners pay a single premium for a period. In a joint term insurance plan, if one of the partners died then the lived one can claim the coverage amount, after which the policy gets expired. Some insurance policies of these types of joint term insurance plans have restrictions on the claimable coverage amount.
The main purpose to opt for the joint term insurance plan is that it helps in the release of the premium benefits, as it proved as cost-cutting in the long term. In an inappropriate situation of the insurer, the surviving consort is not only authorizing to accept the full assured sum amount on the primary insurer’s cover, but the couples also did not have to pay future premiums to keep their spouse cover for this type of joint term insurance plan in force.
For example, a couple where the age of the husband is 36 and the wife’s age is 35 years. They choose one joint term insurance plan for a married couple from many other types of joint life insurance policies for INR 50 lakhs and INR 25 lakhs, respectively. In this case, if the husband has died, the wife will get the cover amount of INR 50 lakhs. Further, his wife’s life insurance of INR 25 lakhs will be continued without paying the premium amount by her.
Here are some joint term insurance plans for married couples:
MetLife’s Mera Term plan is a Joint Term Insurance Plan for married couples that provides the secondary insurer up to 50% of the primary insurer’s coverage amount. If the husband/wife is pursuing the policy plan (primary insurer), so the employed wife/husband gets up to 50% of the primary insurer’s cover plan amount, because a family manager only gets 25% of the policy coverage plan. PNB MetLife’s product gives you a cover of up to INR 25 lakhs for family managers. This can be taken by the employed consorts to look after their non-working spouse to provide the coverage amount.
Bajaj iSecure has no restrictions on the cover amount. But with Aegon Religare’s espouse, these facilities come up as a rider. Smart Hamsafar from SBI Life and PNB MetLife’s Mera Term Plan has the premium disclaimer clause which is integral.
Benefits of joint term insurance plan for married couples in India
|Increased cover amount||A joint term insurance plan for consorts, beneficiaries such as children will get a higher cover amount, even if the spouse dies and their premium is paid, the nominee receives the sum assured on the death of another spouse.|
|Provide great satisfaction||In the case of documentation, paperwork completion is convenient, and there are no hassles with documentation. In a joint term policy, insurers take one policy, so terms and conditions remain the same and convenient to understand.|
|Low-cost premium||The cost of the joint term insurance plan is much cheaper as compared to other life insurance plans.|
|Renunciation of premium||The main benefit of joint life insurance is that once one spouse died, the other one gets the renunciation of the premium.|
Now you are well aware of the details involved in a joint term insurance plan for the married couple, all you have to invest in one spouse, to secure the future of your homemaker. Make a payment of your premiums on time if you want to endure the benefits that are offered by the joint term insurance plan policy.
Joint Life Insurance For Married – FAQs
Q1. What is a joint life insurance plan or joint-life policy?
Ans. A joint term insurance plan or joint-life policy is a cover that you get on a first death basis. It’s a cover amount that the policyholder receives in case of the death of his other spouse during the period. When you apply for the joint term insurance policy, you have to mention the name of the nominee or the recipient. In this life insurance policy, both the partners are the owner or the beneficiaries of the policy.
Q2. How joint term insurance plan for a married couple differs from other term insurance plan?
Ans. Because in joint term insurance plan in India, some points like the number of policyholders, nature of a contract, and death benefits pay-out make it differ from other term insurance policies.
Q3. How will we choose the right joint term insurance plan in India?
Ans. Joint term insurance plans are two types:
- Joint term plan
- Joint Endowment plan
You have to go through all the details of these term plans and select the right one according to your policies.
Q4. Is it only for married couples or not?
Ans. Joint life insurance or joint-life policy is not just for married couples, even the business partners can also take this policy. Even our parents can also buy this joint life policy with their child as a co-owner.
Q5. Why do we do a joint term insurance plan policy?
Ans. Because joint term insurance policies have cheaper premiums as compare to other term policies. It is a good income replacement in today’s world, and it is also providing tax benefits by paying a premium for the policy, you can claim for the tax deduction under section 80C of the income tax act 1961.
Q6. How do we purchase a joint term insurance plan?
Ans. You can easily buy the joint term insurance plan online or offline also. For online, you have to visit the insurance companies website and go through the details. And for the offline mode, you have to visit the insurance company branch which is nearest to you.
Q7. What are the benefits of a joint term insurance plan for married couples?
Ans. The main benefit of the joint term insurance plan for a married couple is that it’s based on the first death. If one spouse having the policy and died then the other one will receive the death benefit lump sum. It has a low premium price, good income replacement, waiver of premium, or increased sum assured.
Q8. Is it a good option to take a joint term insurance plan for a married couple?
Ans. Yes, it’s a good option because it gives a high sum assured to your spouse. In today’s it is really important for every person who is only employed person in his family. In this type of joint term insurance plan, one can purchase a policy called a policyholder and pay a regular premium for the policy. After the death of the policyholder, the spouse can receive the sum assured as a death benefit.