What is Joint Life Insurance Policy
A term insurance with the MWP addendum ensures that the wife and children are protected in the event of family property disputes resulting from property division or any other joint family dispute if the policyholder lives in a joint family or is a member of a Hindu Undivided Family (HUF).
What is a Joint Life Insurance policy?
Two people are covered under the Joint Life Term Insurance Policy. For the defined time, both insured parties pay the premium, and the payout is based on the first death. The other policyholder receives the sum assured in the event that one of the policyholders passes away. However, the coverage ends upon the passing of one covered partner. The surviving policyholder must buy a new insurance plan if they want to continue using the life term policy’s coverage. In a joint life policy, both policyholders are the owners and beneficiaries.
What are the types of joint life term insurance?
There are two types of joint term insurance plans: joint endowment plans and joint term plans.
Joint term insurance: A joint term insurance has similar qualities to a standard life term insurance policy, but it protects two persons rather than only one as with the latter. For the fixed duration of the insurance, only one premium is due from both policyholders. The surviving policyholder is entitled to the death benefit if one of the policyholders passes away within this time. The joint life policy coverage for the surviving policyholder expires at the death of one insured partner, and additional coverage must be purchased under a new plan.
Joint endowment plan: The plan for joint endowment offers both investing and insurance benefits. It is valid for a specified amount of time, usually until retirement. The insurance company will give you a specific sum known as the “endowment” after the policy expires. A shared endowment plan operates similarly, with the exception that it pays the insured couple once the insurance expires. The surviving policyholder receives the sum even if one of the policyholders passes away. The maturity benefit is also available to endowment plans. However, after the passing of either policyholder, premium payments cease.
Why should you think about buying joint life insurance?
The following characteristics of combined term insurance make it a profitable choice:
Low premiums — Joint life insurance plans have inexpensive, low premiums, protecting two people without putting a load on the wallet.
Supplementary income- Some insurance give the surviving policyholder the extra advantage of regular income. In addition to the death benefit, the surviving partner will get a regular income (typically for 60 months) in the event that one of them passes away. This provides the family with additional money, ensuring their financial security.
Reinforces financial security- It is advantageous to buy this plan in order to increase the family’s financial security, particularly for young couples and nuclear families. Whether one couple works or both, they should both have insurance, regardless of which spouse works. The plan will take care of the liabilities and duties in the event of any bad circumstance.
Before you choose a joint term insurance plan, check and evaluate the features.
