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Joint Life Insurance For Married – Is It A Good Option?

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By Author: Harish Kumar
Total Articles: 3
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A question that may often arise in the mind of a married person looking to get an insurance is whether he/she should opt for a joint term insurance policy or for two different term insurance plans.

The basic purpose of a term insurance plan is to provide financial security to the family members of the primary earning member, in case of his/her untimely death.

A joint term insurance policy came into existence since now more women are working and are financially contributing to the family. In the case of joint life insurance, both partners are covered in a single policy and pay combined premium. The tenure of the policy is determined at the time of purchase and both the partners qualify as owners as well as beneficiaries. If one of the partners dies during the policy tenure, the other receives the amount of the life cover.

There are two types of joint life insurance –
1. Joint Term Plan – this is when both the spouses pay the same premium amount for a certain tenure and if one of them passes away, the other becomes the beneficiary for the claim amount and the policy terminates.

2. Joint Endowment Plan – this type of joint term plan is also valid for a fixed period, generally until the retirement of the policyholder, after which he receives an amount known as the ‘endowment’ from the insurance company. Also, this type of plan promises the couple an assured payment after the expiration of the policy. If one of the spouses expire, the other receives the cover amount and the endowment money at the time of maturity of and the future premium payments are waived off. Thus, a joint endowment plan has an investment angle to it.

In some types of joint term plans, in the case of death of one partner, the assured sum is paid in lump sum to the other partner and the policy is terminated. The other case is when the surviving partner opts to receive the assured sum as monthly installments for the coming ten years and the policy will terminate on completion of payment of the entire benefit amount.

If the primary policyholder passes away, all future premiums are waived off for the other partner and the policy continues. But in the opposite situation, the policy continues the same way along with its premiums continuing to be payable.

To conclude, there is no better alternative between opting for two separate term plans or a joint life insurance for a married couple. The decision to choose either depends on each family’s requirements. Each of them have their pros and cons that should be considered before making a choice.

For more information related to joint term insurance, visit:- https://tataaia.com/life-insurance-plans/protection-plans/protection-plans.html

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