A detailed guide on Joint Term Life Insurance
Healthcare costs are increasing day by day, and managing them is becoming equally difficult. That’s why many people prefer investing money in insurance products because they protect your family from financial loss during uncertain times like the sudden demise of an earning member.
The term insurance plans are gaining popularity in India due to several benefits. They offer attractive features not only for individuals but also for families. A joint life term insurance provides coverage to both husband and wife under a single policy. It works like an individual term plan that helps to reduce financial burden effectively. The plan is suitable for married couples.
How does the joint term insurance plan work?
A joint term insurance plan provides coverage for two people instead of one. A partner can claim the coverage amount when another partner dies. On the other hand, a surviving person’s cover continues. Furthermore, the plan doesn’t offer any survival benefit when a policy reaches maturity. The term insurance provides various features for both spouses enabling them to lead a trouble-free life.
What are the types of joint term plans?
A joint term insurance plan offers coverage for a husband and wife in two types. The first one is a standard plan which includes a death benefit. In fact, the insurance plan enables another policyholder to receive the sum assured as soon as possible if any of the policyholders dies.
The second one is the endowment plan which offers the benefits of both investment and insurance to policyholders. It is valid for a fixed period until retirement and pays the amount after a policy expires. When a policyholder dies, the other surviving policyholder will get the amount. Moreover, the plan also covers maturity benefits for policyholders.
When should a couple buy a term insurance plan?
The joint term plans are suitable for nuclear families when both or anyone’s spouse works in an organization. They provide ways to ensure financial protection from rising inflation and other problems effectively. Young couples can opt for the plans that will help their children ensuring more security from future mishaps. The plans work for a family when a partner dies or faces disability due to accidents or terminal illnesses. Apart from that, they provide a supplementary income that will help ensure financial stability.
Do joint term plans offer any rider benefit?
Some joint life insurance providers offer rider benefits to a couple. However, they should check the option with a company before buying a plan. This, in turn, gives ways to make the right decision before investing money. It is wise to consult experts while purchasing a plan from the market.
What are the factors that determine the sum assured amount?
The sum assured is money guaranteed by an insurance provider to policyholders based on certain things. A company will determine the premium amount by evaluating some factors. Some of them include:
Age is an essential factor that plays a critical role in deciding the premium amount of a policyholder. The premium amount will increase for elders couples, and they should consider buying a policy at a young age. This helps a lot to save more money significantly.
Lifestyle is another factor that decides the premium of a term life insurance plan. Therefore, it is necessary to mention the smoking and alcohol consumption to claim amounts as soon as possible. Also, smokers have to pay a high premium due to increased risks.
3. Health condition
Health conditions influence the premium of joint term insurance for couples, and they should work with a professional advisor to meet the essential needs. It is imperative to know a policy has any pre-existing conditions before buying.
Occupation is a vital aspect that impacts the premium costs because specific jobs have high risks. However, an insurance firm will fix them based on their job profile and other factors in most cases.
How to calculate the term insurance premium?
The premium for joint term insurance for husband and wife may vary from one insurance company to another company. Therefore, a couple should know them when they want to buy a policy. They can use an online term insurance calculator to determine the premiums by entering essential details such as age, income, number of persons, etc.
How to choose the best joint term insurance plans?
Anyone who wants to buy the best joint life insurance policy should keep certain things in mind to meet the essential needs. Some include life stage, cover amount, liabilities, funds needed for the current lifestyle, riders, and high claim settlement ratio. In addition, with term insurance plans, a couple will get more benefits that will help protect their family from financial troubles to experience peace of mind. First, however, it is necessary to read reviews of insurance service providers online to gain more ideas. Not only that, they allow a couple to choose the best one among them based on the choices.
Those willing to buy a joint life insurance term plan should compare the quotes online. Most companies offer discounts to new policy buyers allowing them to save money. On the other hand, one should read the terms and conditions when buying a policy from a company. This will help a lot to avoid disputes and other problems while claiming the amount. Besides that, the plans provide ways to avail tax benefits on the premiums paid after choosing a plan from a company. Therefore, it’s never too late to think about complete financial security for yourself and your better half under one plan while saving a considerable amount of your hard-earned money.