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Opting for an insurance plan has become crucial for better financial planning, keeping future uncertainties in mind. Nowadays, people opt for term insurance policies to protect their family's future in their absence. Usually, term insurance plans give financial security to a single person. However, in this world of uncertainties, it will be better if you can secure multiple members of your family. Moreover, with the changing needs of people, insurance companies have introduced a joint-life cover policy to provide comprehensive protection to two persons in a single policy, suitable for couples.

Let us now delve further into the details of the same.

What is a Joint Life Insurance Policy?

The joint-life insurance policy is a plan that covers the policyholder's spouse. The spouse can be a working or non-working person. In this coverage, the payout is made on a first death basis. This is a suitable alternative to provide financial security to your spouse.

How Does a Joint Life Insurance Plan Work?

A joint life insurance policy offers financial protection to your spouse in the case of your untimely demise. The plan will cover your partner, whether they are a working or non-working individual, with both partners assigned as the policy owners. The policy works on a first death basis, which means that in the case of the untimely demise of one partner in the policy duration, the other could file a claim for compensation.

Why Should You Buy Joint Life Cover Policy?

Here are the reasons to purchase this coverage:

 

  • You will get a coverage of 50% of the sum assured.

  • In the unfortunate event of the demise of your partner, the policy remains in effect. In this case, the sum assured will be distributed to you, the surviving partner, under the policy terms.

  • If both spouses die in an unfortunate event, the sum assured is distributed to the policy's beneficiaries.

  • Some joint life insurance policies offer premium perks in the event of the primary insured's death.

Features of Joint Life Insurance policy

Below are the several features of a joint life insurance policy:

 

Provides Safety

If your spouse dies during the policy term, you will receive the amount and vice-versa.

Advantage to Beneficiary

If both spouses meet with an unfortunate event, the legal beneficiary would be eligible to receive the amount.

Choose as per Your Convenience

After your partner's death, you can choose to receive the amount as a lump sum or as a regular monthly income, as per your needs and convenience.

Tax Benefits

You will also receive tax benefits on the premiums paid. In addition, you can claim a tax deduction under Section 80C of the old tax code.

Benefits of Joint Life Insurance Policy

Following are the joint life insurance benefits:

 

Less Documentation

The joint policy entails minimal documentation procedures.

Single-Premium

You will get coverage for two persons in the amount of a single premium.

Cost-Effective

Compared to individual insurance policies, joint life cover policy premiums are cheaper.

Inclusions of a Joint Life Insurance Policy

In the case of your untimely demise, it will give financial coverage to your spouse. If you have an economically dependent partner, you should consider purchasing a joint life insurance policy. Moreover, it is a low-cost financial tool that gives financial security to two people at a single premium rate and is available at a competitive and affordable premium, along with various benefits.

Exclusions of a Joint Life Insurance Policy

Apart from the death, the policy does not provide coverage for theft, accidents, or other incidents.

How to File a Claim?

Here are the steps to follow for the same.

 

  • To begin, you are required to send a claim intimation to your insurance company. The claim intimation includes the details of the date, place, and cause of death of the spouse.

  • After that, you will be asked to fill up the claim application form.

  • Next, you are required to submit essential documents such as policy documents, the death certificate of your spouse, etc.

  • Following the submission, the company will verify the provided details.

  • Lastly, if everything is approved post-assessment, the amount will be transferred to your account.

Conclusion

Life is full of uncertainties. Therefore, you should always focus on better financial planning to secure your family's future in your absence. A joint life insurance policy is the best option in this situation. It will act as a financial net for your spouse with different organisations. Compare different term plans and choose the best as per your necessities. 

Term Insurance Covers and Requirements

Read More About Term Insurance

Government Life Insurance Schemes

FAQs

✔️What are the benefits of a joint life insurance policy?

A joint life insurance policy has several benefits, including minimal documentation, cost-effective premiums, and add-on riders.

✔️Who should get a joint policy?

A married couple should consider taking a joint policy. However, business partners can acquire several other joint policies available. 

✔️Which firm provides the best joint policy?

Numerous insurers in the market offer joint policies. You can compare different plans, choose the best one and avail benefits of term insurance

✔️Will I receive any tax benefit on purchasing a joint policy?

You will also receive tax benefits on the paid premiums. In addition, you can claim a tax deduction under Section 80C of the old tax code. 

✔️Can I add a beneficiary to my joint policy?

Yes, you can add beneficiaries to your joint policy insurance.