Did you know that you can purchase a joint term insurance plan for husband and wife and have both spouses covered under the ambit of the same plan? Yes, a joint term plan for couples is a comprehensive financial product that can provide a life insurance cover to you and your spouse.
A joint term plan for couples functions just like a basic term plan, albeit with life insurance coverage for two people. Therefore, the sum assured under such a plan is shared by both partners and the death benefit is paid out in the event of one or both of them passing away.
If one of the policyholders dies, then the death benefit is paid out to the surviving policyholder. In case both the policyholders die, the death benefit from a joint term plan is paid out to their children or other beneficiaries as mentioned at the time of the purchase of the policy.
A joint term insurance plan for couples has several key features, some of which have been discussed below.
A joint term plan for husband and wife offers you a minimum sum assured of Rs. 2.5 Lakhs. As far as the higher ceiling on this sum is concerned, that varies from one policy to another.
The duration of a joint term plan for couples usually ranges between 10 to 30 years.
Under a joint term plan for husband and wife, the surviving policyholder has the option to choose the mode of the payout of the death benefit after the death of one of the policyholders. This payout can be either in the form of a lump sum amount, in regular installments, or a combination of the two.
You can choose to pay the premium of your joint term insurance plan for couples on a yearly, half-yearly, quarterly, or monthly basis.
There are many benefits of a joint term insurance plans for husband and wife, including:
A joint term plan for husband and wife enables you to opt for a higher sum insured and life cover for yourself as well as your spouse.
The premium of a joint term insurance plan for couples is usually lower than the premium of two term plans, one each for a husband and a wife. Therefore, it is a cost-effective way of buying term insurance.
One of the key benefits of a term plan is the waiver of all future premium obligations for the surviving policyholder following the death of the other policyholder.
You can get tax benefits on the premium paid for a joint term plan for husband and wife. According to Section 80C of the Income Tax Act, 1961, such premiums are deductible from your total income during the computation of your income tax liability.
It is advisable to purchase joint term insurance for husband and wife because such a plan enables you to have a life cover for both partners without having to buy two plans and pay separate premium amounts for each. In addition to this, it is easier to keep track of one term insurance plan rather than multiple ones.
Here are the main reasons why you must buy joint term insurance for husband and wife.
By opting for a joint term insurance plan for couples, you can get a high sum assured at a relatively lower premium than that for two separate term plans.
With both partners covered under the umbrella of one term insurance plan, there is no need to buy individual plans for each.
If one of the spouses passes, then the death benefit of the joint term plan is paid out to the surviving spouse. There are some joint term plans for couples that have death benefit payouts for the deaths of both the policyholders.
Joint term insurance has similar clauses to a basic term plan. However, it is advisable to check the inclusions and exclusions of a particular policy before opting for it.
Here are some of the inclusions in a joint term plan for couples.
Life cover for both spouses with a single or double payout in the case of death, depending on the terms of the plan
Death benefit for the children of the policyholders or other beneficiaries (if thus stated) in the event of the passing of both the policyholders
Here are some of the common exclusions from joint term insurance for husband and wife
Death caused by suicide
Death from a pre-existing medical condition
Death resulting from involvement in any criminal activity
You can file a claim for your joint term plan for couples by visiting the claims page of our official website and following some steps, namely:
Enter your policy particulars.
Fill the claims form with the required personal details and other relevant information.
Upload the necessary supporting documents.
Submit your term insurance claims form.
You can opt for a joint term insurance plan for yourself and your spouse and enjoy a high sum assured at a low cost. Such a plan can be instrumental in ensuring the financial security of your family in the wake of any eventuality.
A joint term plan for couples can be issued to a non-working spouse as well as working spouse. Therefore, if one of the prospective policyholders is a non-working spouse, they can be covered under the aforementioned plan.
Yes, some insurers offer you the flexibility to choose the mode of the payout of the death benefit under joint term insurance for husband and wife.
Yes, Section 10 (10D) of the Income Tax Act, 1961 has a provision for the exemption of tax on the payout of the death benefit under a joint term plan for couples.
You can opt for several additional riders in a joint term plan for husband and wife, including an accidental death benefit rider and a critical illness rider, to name a few.
Yes, you can buy a joint term insurance plan for couples online at the Finserv MARKETS website.