What is joint Life insurance and when should you go for it?

Whenever one thinks of life insurance, the first thing that comes to mind is, securing the life of dependents by the sole earner in a family. In the present scenario, the number of working couples has increased, especially in urban regions. This is where the role of joint life insurance comes in. In this form of insurance, the insurer offers payout in the case of the death of either of the partners insured.

The ability to choose from two types of plans makes it quite popular among couples. The partners can select from either a joint term plan or a joint endowment plan.

Choosing a Joint Term Insurance Plan is a good option if a couple doesn’t want to pay heavy premiums, whereas an endowment plan is ideal if a long-term investment is also an objective.

Features and benefits of Joint Life Insurance

This type of insurance comes with an array of benefits, some of which include:-

Lower premiums: If both the partners choose separate life insurance plans, they have to pay a higher amount in the form of premiums. But, with joint life insurance, a couple receives a dual cover at an economical rate. It’s like getting a discount while buying something in bulk.

Regular income: A lot of insurers offer regular income to the surviving individual in the case of the death of his/her spouse. This ensures the surviving partner does not suffer financially in case of a tragedy, and this is not a key feature they provide you, this is the benefit of policy that you deserve for your loss. 

Security for children: Various plans offer benefits to the children if both the parents die before the maturity of the plan. This ensures that the dreams of your children do not come to a halt due to a tragedy, the mother is the security guard for their children and after her demise, it’s quite hard to take care of children for the breadwinner and in this situation insurance company provides security for children. 

Tax benefits: The individuals also receive tax exemption/benefits as per the Indian tax laws. As the tax laws change from time to time, individuals consult their tax advisors to get more information. Well, directly or indirectly but the joint policy always takes care of your’s & your family. Everyone is looking for tax redemption and an insurance policy is one of those ways through which you can save your tax amount. 

Apart from these general features, each insurer has its own features related to the policies like rider benefits and bonuses.

Misconception Related to a Joint Life Policy

It is believed that joint life insurance is applicable for married couples only. But, in reality, the business partners can also participate in this type of insurance scheme. This ensures that a tragedy, in the form of the death of a business partner, does not hamper the working of a business. Some companies offer joint insurance plans in which parents can include their children as the co-owner of the plan.

Additional Reading:- Best 5 SBI Life Insurance Plans

Popular Policies from Renowned Insurers

Here are discussed some popular joint life insurance policies along with their major features:-

SBI Life – Smart Humsafar 

• The insured individuals receive a guaranteed minimum bonus at the rate of 2.5% of the basic sum assured for the first three years. There are some conditions associated with the bonus.
• The age at entry of the individuals should be minimum of 18 years and a maximum of 46 years.
• If single or both partners are alive during the maturity, they receive the basic sum assured, along with vested simple reversionary bonuses and terminal bonuses. These bonuses are applicable if the policy is in force.
• The minimum premium on a monthly basis is Rs. 500, whereas, on a yearly basis, it is Rs. 6,000.

PNB Metlife – Mera Term Plan

• In case an individual dies, the premium of the spouse is waived off.
• Four options to choose from, with each option having a cover of Rs. 1 crore.
• The life cover can be increased during different stages of life without a medical examination.

Bajaj Allianz iSecure More

• An individual can purchase the plan even if she/he is not married. The spouse can be included in the plan at the later stage, after marriage.
• The spouse can receive the death benefit in the form of monthly installments for 5 or 10 years.
• The cover increases by 5% after the completion of each year of the policy.

LIC Jeevan Saathi Plus 

• The minimum age of entry is 18 years, whereas the maximum age is 55 years.
• The insured individuals are eligible for partial withdrawals after the completion of three years of the policy.
• In the case of the death of the individual, the surviving partner has the option to transfer the sum assured to the policyholder’s fund instead of receiving it immediately.

List of Plan

Additional Reading:- Features and Benefits of LIC Komal Jeevan Life Insurance Policy

Conclusion

It is said that a team is always stronger than an individual. Well, all the benefits and features of joint life insurance reflect that it is applicable in terms of life insurance, too. Therefore, secure your own life and the life of your spouse by choosing the best plan. You can compare the joint-life insurance policies for married couples in India online via the policy comparison sites or through the portals of insurance service providers. Insurance policy is the basic need of people and right now people are not taking things as they should be. Joint Life Policy is just made for couples, and in the city like Delhi, Mumbai, Chennai, Bangalore & Kolkata. The couples earn together planned the exploration together, it’s quite possible that they’ll buy the policy together for themselves.