Marriage can be a joint responsibility. When you get married, you and your spouse both might look after the household as well as the financial duties of your entire house. Since both of you equally depend on one another, can you imagine a life without one of you? While your partner might cherish your presence, he/she would be unable to bear your loss emotionally as well as financially. If your partner is unable to manage the finances without you, it can end up in financial stress for the latter.
When you are alive, you should buy joint term life insurance to prevent financial turmoil within your family in your absence. Before you purchase a joint term policy for the financial security of your partners, let’s understand its meaning in detail:
As the name suggests, a joint life term insurance allows you to cover your spouse under the same plan. It can be a comprehensive coverage that can offer multiple term insurance benefits for you and your spouse. With a joint life plan, you can ensure your partner’s financial security in your absence. After your demise, a joint life term policy can provide a death payout to your spouse to maintain their current standard of living without you.
Under a joint life term plan, follow the top four steps mentioned below to select the right term plan for you and your spouse:
Step 1: Pick the right sum assured value
Picking the right sum assured value can play a major role while selecting joint term life insurance. Consider your spouse’s financial needs to ensure that they are secured in your absence.
Step 2: Opt for add-ons
Add-ons can be the additional benefits offered by your insurer to strengthen the base joint life term insurance. However, these riders can differ from one company to the other.
Step 3: Select the tenure of joint term life insurance
As a primary policyholder, you should usually opt for coverage until your active working years. Opt for long-term coverage to receive financial protection for you and your partner in the long run.
Step 4: Choose the premium payment frequency
A joint life term plan can allow you to choose the premium payment mode/ frequency based on your convenience. However, your premium can depend upon your age, gender, smoking habits, and so forth.
Apart from dual financial protection, a joint life term insurance can provide you and your partner with a host of other benefits. However, the advantages offered under joint term life insurance can depend from one insurer to the other. Therefore, let’s go through the top three of the most common term insurance benefits that can be provided by many insurance companies:
A joint life term plan can be a complete term plan, unlike a single term policy. When you purchase a joint term life insurance, your insurer can provide comprehensive coverage along with the add-on covers available under the policy. With the additional add-on covers, you can cover your spouse from unfortunate events such as critical illness, accidental death, physical disability, and so forth that are not covered under the base joint term policy.
Premiums might be an inevitable element of a joint life term insurance. However, if anything happens to you in the future, and your spouse is unable to make the premium payment, your insurer can waive the premium off. After the premium is waived off, your spouse can continue to reap the term insurance benefits without financial constraints.
Under joint term policy, your insurer can provide you with a competitive premium rate. As a policyholder, you can customise your plans accordingly by keeping your spouse’s financial needs in mind. Before you choose a final joint term life insurance, you should compare various plans and calculate the premium on a term insurance premium calculator.
As highlighted above, the major advantage offered under joint term policy can be the inclusion of your spouse. Although your spouse might be working, you should cover them under the same joint term plan that you purchase. Covering your spouse under the same plan can reduce their financial burden in the future when you are not around to look after the house.