I am Married. Should I Consider Purchasing a Joint Term Insurance Plan?

With the increasing uncertainty in today's age, it is imperative to have coverage for both yourself and your spouse. Couples can buy individual life insurance plans, but some insurers now offer joint term insurance plans. You can get complete coverage for yourself and your partner under a single policy with a joint term insurance plan. Both the husband and wife are insured, and in the event of the death of one, the other receives the coverage amount. As a result, the family is financially secure if one of them passes away. Other benefits, such as a regular payout to a designated survivor in the family, may also be available under different schemes. However, it must be noted that if one of the partners dies, the policy will end and if the surviving partner wants more coverage, he/she will need to obtain a new policy. 

Should I Consider Purchasing a Joint Term Insurance Plan If I am Married?

There are a variety of reasons why a joint cover is preferable over individual term plan covers. Joint term insurance is an excellent choice if you are a couple with both spouses working and have individual automobile and personal loans. If you or your spouse suffers a misfortune, the insurance helps cover outstanding loans and guarantee the future of your children. Let's read about these benefits in detail. 

1. Coverage for Both Spouses

In the terrible event that both parents die, children may be entitled to a larger sum assured under a joint term insurance plan for spouses. For this, you must select a term plan that pays separate death benefits on the death of both spouses, rather than just one. Beneficiaries will receive the cash owed for each spouse's death if you do this.

2. Low Premiums 

In most circumstances, the combined premium for a term plan covering both spouses will be significantly less than the premium amount if each spouse has their own policy. Moreover, when the covered spouse dies, the surviving spouse is not protected by the individual policy. It's likely that the surviving spouse is substantially older at this point and will have to pay a higher premium for a new policy. In addition, if the surviving spouse is a stay-at-home parent, he/she may not be eligible for term insurance because of no regular source of income.

3. Easy to Manage

Getting a life insurance policy requires filling out paperwork, signing documents, and so on. The paperwork is halved when you only have one policy instead of two. In addition, you need to pay premiums on a set schedule. If you have separate plans, you must remember at least two sets of dates to pay the payments. Also, keep in mind that a non-earning spouse may be ineligible for direct term insurance. As a result, the only method to provide him/her with life insurance is to add him/her to your existing policy or purchase a joint term plan.

4. Waiver of Premium Benefits

One of the main reasons you might prefer a joint term insurance policy with your spouse is because if one of you dies, the other spouse receives a premium waiver. As a result, the term plan continues to be operational without the need to pay any more premiums. The policy's benefits will be available to the surviving spouse. Moreover, the assured money will also be available to their dependents in the event of their death.

5. Tax Benefits

You might get extra tax benefits if you buy a joint term life insurance plan. Firstly, under section 80C of the Income Tax Act of 1961, you can deduct the premium you paid for the policy. Secondly, under section 10(10D) of the Income Tax Act, the promised sum received upon the death of any of the partners is tax-free.

Take Away

If you both work and live in a nuclear family, a joint term life insurance plan is a terrific way to keep things easy while also providing financial protection for your family in the event of an accident. Hence, it is essential to make sure that you get a policy that offers enough coverage for you and your partner's lifestyle. 

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Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.