Spouse Term Insurance

Spouse term insurance is a life insurance plan that covers both husband and wife under the same plan. This plan works on the concept that both individuals play an important role in fulfilling the responsibilities of the family. In the event of the demise of one policyholder, another policyholder will still continue to get life insurance coverage. Additionally, a term insurance company will pay a death benefit if any policyholder dies during the policy's tenure.

The following are the benefits of purchasing term insurance plans for couples:

• Cost-Effective Plans: Joint term insurance plans are more economical in comparison to individual term plans. Therefore, you may have to pay less premium if you invest in a spouse term insurance plan.
• Comprehensive Coverage: These term life insurance plans provide enhanced coverage to the policyholders. Firstly, you can secure both yourself and your spouse under the same plan at an economical premium. Secondly, the policyholders can buy riders such as critical illness benefit riders, accidental death benefit riders, and more to enjoy comprehensive coverage.
• Premium of Waiver Benefit: Spouse term insurance plan provides a premium of waiver benefit to its policyholders. This means if one policyholder dies during a policy tenure, another one will receive an assured death benefit in a lump sum. Additionally, a term insurance company will waive all the future premiums that you may have to pay for your plan.
• Secure Future for Children: In the event of the death of the couple, a death benefit is paid to the nominee or beneficiary of the policy. This nominee can be your dependent children, who may face financial hardship after your demise. Therefore, it is wise to buy a spouse-term insurance plan to financially protect your children.
• Tax Benefits: Term insurance plans for couples provide tax benefits under Section 80C and Section 10 (10D) of the Income Tax Act, 1961. Therefore, you can accomplish two goals of financial security and savings of tax by purchasing one joint life insurance plan.

Many term insurance companies provide term plans for couples in India. Here’s a list of some of the best plans in which you can invest in 2023:

Similar to other life insurance products, there are some things that are not covered under a spouse's term insurance plan. The below section highlights the inclusions and exclusions under term insurance plans for couples in India:

What is Covered?

• Life coverage for both you and your spouse.
• Assured death benefit for children in case of the demise of any policyholder.

What is Not Covered?

• The death of the policyholder happened due to a self-inflicted injury.
• Demise that happens due to a pre-existing condition.
• The death happened due to the involvement of the policyholder in any criminal activity.

It is crucial to keep some factors in mind when you purchase a spouse term insurance plan. Some of these factors are listed below:

• Terms and Conditions: When you purchase a joint-term insurance plan, both partners share equal authority in modifying the policy. In simple terms, if one policyholder of the spouse term plan wants to add or remove any feature from the policy, then the other partner will also have to provide their go-ahead.
• Premium Payment: In the spouse-term insurance plan, the policy stays active even after the demise of one policyholder. Therefore, another life assured will continue to pay a premium for their policy. However, if you fail to pay your premiums, a term life insurance policy may lapse.
• Coverage Amount: The sum assured is the amount that a term insurance company pays upon the maturity or death of the policyholder. Before purchasing term insurance for couples, ensure that you analyze the financial needs of your family.