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

Whenever one thinks of a 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 the urban regions. This is where the role of joint life insurance comes in. In this form of insurance, the insurer offers payout in a case of death of the either of the partners insured.

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

Choosing a Joint Term Insurance Plan is a good option if a couple doesn’t want to pay heavy premiums, whereas 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 a death of his/her spouse. This ensures the surviving partner does not suffer financially in case of a tragedy.

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.

Tax benefits: The individuals also receive tax exemption/benefits as per the Indian tax laws. As the tax laws change from time to time, the individuals to consult their tax advisors to get more information.

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

Misconception related to 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 schemes. This ensures that a tragedy, in the form of 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.

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 guaranteed minimum bonus at the rate of 2.5 percent 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 18 years and maximum 46 years.
  • If single or both partners are alive during the maturity, they receive basic sum assured, along with vested simple reversionary bonuses and terminal bonus. 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.

Additional Reading:- Best 5 SBI Life Insurance Plans


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 medical examination.

Bajaj Allianz iSecure More

  • An individual can purchase the plan even if s/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 percent after the completion of each year of the policy.

Additional Reading:- Bajaj Allianz eTouch Online Term Insurance Plan


LIC Jeevan Saathi Plus 

  • The minimum age of entry is 18 years, whereas maximum age is 55 years.
  • The insured individuals are eligible for partial withdrawals after the completion of three years of the policy.
  • In a 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.

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.

Harjot Singh Narula

Harjot Narula is founder and CEO of ComparePolicy.com, an IRDAI approved insurance web aggregator focussed on selling online insurance for companies. Harjot has more than a decade of experience in software development and has also spent 5 years in US working for the mortgage and risk management industry.

Leave a Reply

Your email address will not be published. Required fields are marked *