Life insurance specifically came into existence to protect the life of the leading earning member of the family. In today's era, there is an increase in the number of working couples. This has led to an increase in the demand of joint-life insurance policy.
What is meant by joint life insurance?
Joint life insurance policy provides coverage to two people together. It is open jointly, under which; either spouse together or a one-member along with a child is covered. A joint life insurance cover is given on the first-death basis. It is a specific life insurance plan that provides various sets of benefits for both partners. In a joint life insurance policy, both the partners (owner and the beneficiary) are covered. One can opt for a term plan or an endowment plans under joint life insurance policy. Both the plan covers two-lives. A joint life insurance plan ensures that your partner would be safe when you are not there. The cover offers the same importance to the life of both the partners. Such insurance cover provides pay-out as soon as one of the partners expires and also provides a monthly income* to the remaining one.
Advantages of a joint insurance policy
Under a joint life insurance policy, in case of death of any partner, other partner gets the death or maturity benefits of the policy. Benefits of the policy could be availed as a monthly income or can be taken as a lump-sum amount. The living partner if wishes to get a life cover for himself/herself then he/she will have to take a separate life insurance policy from the same or another insurer. In certain conditions, if the second partner dies, the nominated beneficiary gets the policy benefits. In such joint life insurance policies, the death benefits are paid on the death of each of the insured partners.
There are other advantages that some plans offer, which include a regular monthly income to the living partner after the death of the policyholder for a particular tenure (60 months to 120 months varying from insurer to insurer). If the partner dies due to an accident or due to some critical illness, then along with the death sum assured, the additional accidental or critical illness benefit amount is given to the beneficiary. It is only applicable if these riders are selected at the inception of the policy. These riders increase the sum assured at a nominal rate.
Annual Premiums for the life cover is another advantage of availing joint-life insurance with your partner. In comparison with individual life insurance for you and your partner, joint-life insurance will come cheaper for most of the plans available in the market.
What is the requirement of joint life insurance?
The need for such plans has come into existence as more and more partners contribute towards the monthly income of the family to meet the growing needs of the family. In a nuclear family, the untimely demise of any of the partners is a severe blow to the rest of the family members that is children or old parents. In such a case, a joint life insurance policy is required. According to experts, such policies are beneficial for young couples who are planning to start their family or already has a child. In case of death of any partners, the benefit is given to another partner who is alive.
If you have a spouse who is not working, then it is imperative to secure the life of your family. After your death, taking care of the entire family including your kids and old parents might not be a liability on your spouse.
*Depending on the policy opted for