You must be familiar with life insurance policies but were you aware of insurance policies for married couples? Many companies offer this type of insurance plans to married couples. A joint insurance plan is better than buying individual term plans and naming the other spouse as the beneficiary. Read further to understand the benefits of getting such a plan and weigh the pros and cons of a joint plan.
Table of Contents
What is Joint Life Insurance Plan?
As the name suggests, a joint life insurance plan involves getting a life insurance policy with your spouse. If you were to pass away, your spouse would immediately get the death benefit and vice versa. Term life insurance for married couples costs you less when compared to buying individual insurance policies.
Benefits of Life Insurance for Married Couples
Here are some benefits of getting a joint life insurance plan:
- Life cover is provided to both the spouses
- A joint policy is cheaper when compared to general insurance policies
- Tax exemption can be claimed under Section 80C of Income Tax Act, 1961
- Loan against policy can be availed on certain joint policies
- Rider benefit can be added to specific insurance plans
- The amount for maturity benefit or the death benefit can be chosen according to your future plans
Joint Life Insurance Plan vs Individual Insurance Policies
Making a choice between the two can be confusing as both these plans provide almost similar features but certain things set them apart. The premiums of a joint life insurance plan cost less when you compare them to two separate term plan. It is a good choice for a couple who are just starting out together. In today’s day and age, both spouses work and add an equal amount of money to take care of the expenses. In the event of anyone’s death, the other would have to bear the financial blow.
But the downside of this plan is that certain policies provide life cover for the first death only. So the second person doesn’t have any cover afterwards. However, there are insurance policies with double life covers available as well. Also, if you and your spouse were to divorce, you wouldn’t be able to split the policy. But such a situation wouldn’t affect you if both of you had separate policies.
Bottom Line
You can opt for term life insurance for married couples if you think you and your spouse cannot afford two separate plans. Keeping the downside in mind, you need to weigh what will aid your family financially and also in the long run.
