Joint Life Insurance Meaning
A joint term policy is an insurance plan that offers protection to you and your spouse from any risks. Both individuals are the beneficiaries of the policy. Instead of opting for two separate term plans, you can get a joint policy to secure your loved ones. Therefore, if one of the beneficiaries were to pass away, the other one would get the death benefit and the plan would expire. You can choose to get the coverage amount as a regular income or as a lump sum payout depending on your needs. With the help of riders, you can maximise the coverage available under the joint insurance plan and avail additional benefits. Check out the life insurance calculator to compare and get the best insurance policy online!
How Does Joint Life Insurance Work?
The joint insurance policy provides coverage to two people in exchange for paying regular premiums. In the event of the death of one of the policyholders, the insurance provider shall payout the death benefit. So, usually, where a term insurance policy is given to a single individual, here you can avail security for two individuals, you and your spouse. However, many joint policies now offer unique features to policyholders where a regular income is paid out apart from the sum assured amount. It is recommended to explore all types of life insurance policies available in the market to get a personalised plan.
Types of Joint Life Insurance Plan
Joint insurance policies have two types of plans that you can get:
Joint Term Policy
Under such a plan, the policyholder is supposed to pay the premiums for a specified period during the policy term. In the event of an unfortunate mishap leading to the death of the insured, the death benefit is paid out to the second beneficiary. Some joint term plans also offer life cover to both the policyholders. Here, the death payout is then given to the legal heir in case of the demise of the second policyholder.
Joint Endowment Policy
Similar to an endowment policy, you can opt for a life cover plus savings component joint insurance plan. If both policyholders survive the policy tenure, then the insurance provider pays out a maturity sum. Some insurers also payout the maturity amount even if one of the policyholders passes away. Thus, you can aim for wealth creation along with a risk cover.
Features & Benefits of Joint Life Insurance
Here are some key benefits of joint life insurance that you should consider while purchasing one:
Instead of purchasing two term plans, you can buy one joint policy at an affordable premium rate. Thus, you can enjoy dual cover perks with all the features and benefits of a term policy for a lower cost.
By adding rider benefits to your joint insurance policy such as critical illness or accidental death cover, you can get extra coverage. You can avail additional perks over and above the benefits of your policy.
Cover for both individuals
Some policies enable you to file death claims upon the demise of each of the policyholders. So, if such a joint plan suits your requirements, then you can opt for it to safeguard your loved ones.
Joint insurance plans have easy and hassle-free documentation. If you were to purchase two individual policies, you and your spouse would have to fill out two separate applications. But with a joint policy, it is much simpler!
Joint insurance policies are not only meant for married couples but also for business partners, parents along with their children, etc. If you still haven’t secured your loved ones yet, opt for a joint life insurance policy today! Before purchasing any insurance plan, it is recommended to read your policy documents thoroughly and understand the exclusions.