Life insurance has traditionally been designed to cover the life of a family’s main breadwinner. However, as time has changed, especially with the increasing number of working couples, there is also an increasing need for life insurance protection for spouses to provide comprehensive family protection. One way to do this effectively is by opting for joint life insurance.
Joint life cover insurance is a financing instrument specifically designed for this purpose. They are particularly suitable for married couples. However, there is much more to know about it that will help people make an informed decision.
What is a Joint Life Insurance Policy?
A joint life insurance policy covers two people under a single policy. A combined term plan like a joint life insurance policy ensures the financial stability of the home in the event one of the policyholders dies. It is similar to a life insurance plan like the Tata AIA life insurance policy for an individual only that the policy covers two people rather than one.
The premium for the group life insurance must be paid at regular intervals, as with an individual risk provision. If one of the members dies within the policy tenure, the other can apply to receive the coverage.
While married couples may find joint life insurance policies ideal, there are no limitations on who can buy the policy. Two people can take out joint risk insurance to protect each other in the future.
For example, a parent and their child might choose joint life insurance. In the event of the parent’s untimely death, the plan payout can reduce the family’s financial security and other huge expenses, such as schooling and college.
How Does a Joint Life Insurance Policy Work?
Once people understand joint life insurance, they can plan their finances more accurately. In addition, it will help them direct their hard-earned income into tools that can further improve the financial prosperity and security of their loved ones.
- Today, many joint insurance policies provide cover up to 50% of the insured amount to the insured’s spouse. In addition, life insurance companies like Tata AIA provide guaranteed return investment plans in India for their policyholders.
- In the event of the death of the main insured, a fixed monthly payment is made to the spouse in some cases. This also depends on the specified frequency of payment by policyholders.
- In the event of the untimely death of a policyholder, the policy remains active. In this case, the sum insured is distributed to the surviving partner according to the conditions of the joint life insurance.
- One might also find some joint life insurance policies that waive premiums in the event of the death of a policyholder to ease the financial burden on the surviving partner.
- If both policyholders fail to survive due to an unfortunate incident, the sum insured will be given to the policyholders’ nominee or their legal heirs.
- If one of the spouses is not employed, the total sum insured under the joint life insurance policy must not exceed the maximum sum insured for the primary insured.
Types of Joint Life Insurance Policies
If one is looking for joint life insurance to cover themselves comprehensively, there are alternatives similar to regular insurance. It could be a simple plan or endowment. First, one should take a look at what types of joint life insurance policies are available to them:
- Joint term plan: Like the standard term policy, one’s spouse pays a premium for a particular period to remain insured under a joint life insurance policy. During this time, one can claim the guaranteed return insurance amount if either of them suffers an unfortunate event. As soon as it is done, the joint life insurance coverage ends.
- Joint endowment plan: The combined capital life plan offers both investment and insurance benefits. It is valid for a certain period of time, usually before the start of retirement.
When one’s insurance coverage term is completed, the insurance company pays them an amount of money called an endowment. This particular plan works much like a regular life plan, except that the endowment life plan pays out to the insured couple when the insurance expires. It is a guaranteed return plan.
Even if one of the policyholders suffers an unfortunate incident, this remains true. In such a case, the surviving partner receives the cover and the endowment money after the agreed deadline. Retirement benefits are also available for endowment policies. However, the premium payment does not have to be continued after the first death.
By keeping all these factors in mind, one can easily opt for a joint life cover plan and enjoy the benefits that come along with it. All one needs to do is contact a reputable life insurance company that provides guaranteed return insurance plans to their policyholders at affordable premiums and great services. .
Disclaimer: This is a sponsored post on behalf of Tata AIA, but then again as always, we are devoted to providing content that is supportive and valuable to the readers.