Getting a life insurance plan is a must for better financial planning, since you can’t predict what may happen in the future.
But what is life insurance? Life insurance is a safety net to protect families’ future in case something unfortunate happens suddenly. Most term insurance plans are designed to cover a single person. But in this uncertain world, it’s better to protect more than one family member., As people’s needs change, insurance companies have come up with a “joint-life cover” policy that fully protects two people under a single policy. This is good for couples.
So, what is joint life insurance?
A joint-life insurance plan covers the policyholder as well as their spouse. The spouse may or may not be a working individual. With this coverage, the life cover is given out based on the policyholder who passes away first. This is an effective way to give your spouse peace of mind about their financial future.
A policy that protects your spouse financially in the event that you pass away too soon is a joint life insurance policy. Your partner can be covered by the plan, whether they work or not. Both of you may be listed as the policy owners. The policy is based on the policyholder who passes away first, which means that if one partner passes away unexpectedly during the policy period, the other could claim the coverage.
Here are some reasons why you should buy this kind of insurance:
- You can get covered by 50% of the sum assured if one of the partners is no more.
- In the unfortunate event that your partner passes away, the policy can still be in effect. In this case, the terms of the policy say that the sum assured may be given to you, the surviving partner.
- If both spouses pass away in an accident, the sum assured is given to the policy’s beneficiaries.
- If the primary insured passes away, some joint life insurance policies offer reductions on the premiums.
Features of Joint Life Insurance:
Here’s what you should know about a joint life insurance policies.
It gives you peace of mind. If your spouse breathes their last during the policy term, you can get the money; if you pass away, they can get it.
- If something terrible happens to both spouses, the legal beneficiary would be able to get the money.
- After your partner passes away, you can choose to avail the coverage all at once or spread it out over several months, depending on your needs and preferences.
- You can also get tax breaks for the money you pay in premiums. Under Section 80C of the tax code, the money paid as premiums is eligible for tax deductions up to a certain limit, given the terms and conditions are met. However, many tax benefits are only applicable to those who have opted for the old tax regime. Consult your tax advisor for more details.
Benefits of Joint Life Insurance
Here are the benefits of a joint life insurance plan:
- Less Documentation: The joint policy doesn’t require a lot of paperwork as compared to two different policies.
- Single-Premium: For the price of a single premium, you can cover two people.
- Cost-Effective: The premiums for joint life cover policies can be less than those for two individual policies.
If your partner depends on your income, you should consider getting a joint life insurance policy Also, it is a low-cost financial tool that gives financial security to two people for a single premium rate. It is also available at a competitive and affordable premium rate and has other benefits.
A Joint Life Insurance policy may not always cover theft, accidents, or other things that might happen. However, it may cover the passing of a partner due to any of these reasons.
How to File a joint life insurance Claim?
- You need to let your insurance company know about your claim. The claim notification includes the date, place, and reason for the spouse’s death.
- Fill out the given form for making a claim.
- Next, you must send in important documents, such as your policy documents, your spouse’s death certificate, etc.
- After the submission, the company can check the information that was given.
- Lastly, the money can be put in your account if everything is okay after the assessment.
There are a lot of unknowns in life. So, it would be best if you always worked on better financial planning to protect your family’s future after you pass away. Getting a joint life insurance policy can give your spouse a financial safety net. Compare the different term plans and pick the best one based on your needs. A life insurance premium calculator can help you decide the plan for you based on the expected premium and other requirements.