No one can buy love with money, but you can secure your partner's life with it. With a joint life insurance policy, you can cover your partner with you under the same plan.
Typically a joint life plan is designed for couples, but it can also be taken by business partners and parents with one of their kids. It is an affordable alternative that offers coverage for two individuals under a single plan. However, the premium is much cheaper as compared to paying for two different policies and should be paid in regular intervals, just like an individual term plan.
Upon the demise of the primary policyholder, the death benefit is given to the surviving partner. Later, when the surviving partner passes away, the death benefit goes to the nominee, and the policy lapses. Please note that there is no survival benefit associated with joint life insurance.
Let's learn more about how joint life policy works in detail so that you can make an informed choice.
Let's understand how joint life insurance functions with the help of an example.
Meet Varun
Varun is a 30-year-old healthy and non-smoker male
Purchased a Joint Life Insurance Plan
Varun buys a ₹1 crore joint life insurance plan with his wife who is a homemaker.
The life cover is divided into 2 parts:
Varun - 1 Crore
His Wife - 50 Lakhs
Unfortunate Death
During the policy tenure, his wife suffered an unfortunate death due to an accident.
Death Claim
Varun received ₹50 lakhs as a death benefit, and now the remaining life cover is his share of 1 crore.
After Claim
Varun can use the payout amount to pay for household expenses. His policy will continue untill he passes away. His death benefit will go to the nominee.
The following types of joint life cover plans are available.
Here, we've listed some benefits associated with a joint life insurance policy.
Buying separate plans for both spouses can be expensive, but with a joint life policy, you can add two individuals while paying a payment for a single plan.
A joint-term plan provides flexibility to choose the payout term based on the policyholder's requirement.
Upon the unfortunate death of the primary holder, the other spouse can choose a payout amount to substitute the primary spouse's income source. It'll help them continue with their life with a constant stream of income.
Joint Life insurance offers few tax benefits under Section 80C & 10(10D) of the Income Tax Act.
Typically, a joint life policy is designed for couples to offer coverage for two people in a single plan. However, the minimum or maximum age to be eligible for joint life insurance is 18 to 65 years. Let's understand who should get a joint life policy.
Now, you may be familiar with a joint life policy and its benefits, so you can decide whether it is suitable for you or not. Buy joint life insurance and give your partner more than just a momentary joy. Apart from a pocket-friendly premium, with joint life insurance, you can save time and the hassle of maintaining two separate plans.
Compare and buy the most suitable Life Insurance Plan from the below-mentioned IRDAI-approved Life Insurance companies.
Know More About Life Insurance Companies
Know More About Term Insurance Companies
Sahil is a passionate content writer with over two years of expertise in the insurance domain. He uses his knowledge in the field to create engaging content that the customer can relate to and understand. His passion lies in simplifying insurance terminology, ensuring a hassle-free understanding for potential policyholders. With his outstanding collaborative efforts with people, he understands different perspectives and keeps readers' viewpoints at the forefront of his content writing approach.