It is not for nothing that marriage is called a divine partnership. The two of you essentially promise to share your whole life together – through the good and the bad. It, thus, becomes your duty to ensure your partner is protected from any eventuality in life, and to be there for them in their hour of need, no matter how often it arrives.
Sharing a life insurance plan is just another way to ensure you are able to provide for each other.
What is Joint Life Insurance?
Usually, when you apply for a life insurance policy, you mention a nominee or beneficiary. In Joint Life Insurance, both you and your partner will be the owner as well as the beneficiary. So, in case something happens to one of you, the other will receive the benefit of the life cover.
Types of Joint Life Insurance:
Just like with an individual life insurance plan, you have options in the Joint Life Insurance category too. It can be either an endowment plan [SN1] or a typical bare-bones term plan. The only difference is; the plans covers two lives instead of one.
- Joint Term Plan: Much life regular life insurance, you and your partner pay a premium for a fixed amount of period, during which time you can claim for the life cover amount in case either one of your dies. However, the cover expires after this happens. You or your partner will then have to buy another life insurance cover at a revised rate of premium.
- Joint Endowment Plan: An endowment policy also has an investment aspect. Like a term plan, it is valid for a particular period of time—ideally until your retirement begins[SN2] . After this period of time, your insurer pays you a certain amount. This is called the ‘endowment’. Similarly, the joint endowment plan promises you and your partner an assured payment after the policy expires. This is true even if one of you passes away. If that happens, you get the cover after your partner’s death and the endowment money after the maturity of the agreed period. The premium payments, however, do not have to continue after the first death.
Not just married couples!
Joint Life Insurance is not just for married couples. It is also applicable for business partners. This allows different sets of people to take advantage of a life cover to take care of their business interests.
Even parents can opt for a joint life insurance plan with their child as the co-owner. This way, the child can benefit in case of the parent’s unexpected death. The money from the life cover can help secure the child’s financial security[SN3] , especially considering the rising cost of education[SN4] , medical treatments or even day-to-day household maintenance.
Why opt for Joint Life Insurance?
Cheaper premiums: If you have ever gone shopping, you would know; it’s easier to bargain when you are buying larger quantities. Similarly, the premium for joint life insurance plans is quite likely to be lower. This way, you get the added benefit of a dual cover at a comparatively lower cost.
Replacement of income: In today’s world, it is quite likely that both the husband and wife earn to run the household. If only one of you gets insured, a sudden loss of income can add to the nightmare. Wouldn’t you feel more secure knowing both of you are covered?
The fact is, two is always stronger than one. This applies for life insurance too. Opting for a Joint Life Insurance would make life much easier and more secure.