What type of term life insurance do you need as a couple? Is it a joint term insurance plan or two separate term life policies? The concept of term insurance is simple. If you buy a term life insurance policy for a given period of time, it offers financial protection to your dependents on an untimely demise within the policy term. Term Life insurance offers high cover at low premiums.
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Term Life insurance offers tax benefits under Section 80C up to Rs 1.5 Lakh a year. It offers flexibility to choose the term life plan you seek. The minimum entry age is 18 years, whereas the maximum entry age is 60-65 years. The premium is computed considering the current age of an applicant. For example, a 40 year old person has to pay higher premium than a 30 year old person. Term insurance policies do not offer survival benefits.
Would you like to gift your wife something big on her birthday? The best thing you can gift is a joint term insurance policy. This plan covers both the husband and the wife as owners as well as beneficiaries. If you are working but your spouse is not, you can opt for joint term life policy to cover your wife as well. Getting term insurance for non-working spouse is difficult. Thus, joint term insurance plans are an ideal choice.
The primary policyholder has to be an earning member while availing this policy. In most cases, the secondary policyholder gets 50% of the sum assured offered to the primary policyholder. However, there are other variants of joint term plans as well like joint endowment plans.
See Also: The Ultimate Guide to Term Insurance
Joint term insurance policies are great for nuclear families where the demise or disability of an earning member has a massive impact on the finances of the entire family. Young couples with outstanding loans may also consider buying joint term insurance to stay financially secure. Both individuals pay a single premium for the entire fixed period. If one of the partners dies, the surviving partner claims the life cover. After the death of the surviving partner, life cover expires.
Understand the merits and demerits of term life plan vs joint term life insurance and choose the one which suits your family requirements.
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