What is Joint Life Insurance? Benefits of Joint Insurance Policy
What is Joint Life Insurance?
Single life insurance ensures that your dependents do not suffer financially in the event of your death. Whereas under joint insurance provides financial assistance to two business partners or spouses.
The head of the household, the husband contributes financially to run the household, this approach is understandable, while his spouse may not contribute financially, yet discharges family responsibilities, thus resulting in the death of the partner from a financial point of view. could be harmful.
In such a situation, a joint life insurance plan can be very beneficial as compared to any other life insurance plan. This is the reason why it is worth considering taking a joint insurance policy which covers the financial loss that may occur after the possible death of the partner.
Joint Bima is a better option for married couples
It is clear from the name of Joint Bima Policy i.e. Joint Life Insurance Plan that this insurance plan provides financial security to two persons. According to financial experts, this plan is a better insurance plan for married couples. Under this, in the absence of one person between the term of the insurance cover, the other gets the benefit of life cover.
Types of Joint Life Insurance
Insurance companies provide two types of plans under joint insurance, one is Joint Term Plan
and the other is Joint Endowment Plan . Let us know about these two policies in a little more detail.
What is Joint Term Plan – What is Joint Term Plan
In this type of joint life insurance, financial protection is provided to two persons for a fixed period in a single premium. Two persons can be husband wife or even two business partners. The term of insurance can be for 10-30 years. The insurance premium is determined keeping in view the age and health status of both.
Taking a policy at a young age is beneficial as insurance companies charge less premium. In this type of joint life insurance, if one of the partners dies, the surviving partner can claim for the life cover amount after which the cover lapses.
What is Joint Endowment Plan – What is Joint Endowment Plan
Endowment plan gives life cover as well as investment option. In this scheme also, two partners or husband and wife get the benefit of financial security. Like a joint term plan, insurance cover is also given in this for a fixed time. Many such companies also provide cover till the age of Jai retirement. After retirement, the insured gets a fixed amount which is called endowment.
PNB MetLife, Aegon Religare and State Bank of India (SBI) Life have recently introduced this type of joint life insurance. Which covers couples under one policy. While PNB MetLife and Aegon Religare are offering this facility as a part of online term policies, SBI Life’s offering is an endowment plan.
Benefits of Joint Insurance Policy
After knowing what is joint insurance and what are the types of joint insurance, we will know about the benefits of Joint Insurance Policy . Joint insurance is better than single insurance in many ways and it has many benefits. So let’s know what are the benefits of Joint Life Insurance Policy.
Insurance management is also easy
The primary advantage of a joint term plan is the convenience attached to it. It is much easier to operate one insurance than two different insurance policies. Therefore, taking Joint Insurance Policy would be better than taking two different insurance policies. In small families, both the spouses can take advantage of shared properties and joint security etc.
If the married couple is working then it is a better option for this because in today’s time the financial responsibility is equally on the husband and wife. From home loan to car loan, there are names for both, so both need equal financial security. Accordingly, a joint life insurance policy is also a better option.
Premium rate is also low
An advantage of joint life insurance cover is that its premium is also cheaper than other insurance. If you buy two different insurance policies then you will have to pay a higher premium whereas the premium for a joint life cover will be much cheaper as compared to two insurance covers.
In joint insurance , the premium gets reduced after the first installment is paid. If one of the spouses dies, the surviving spouse is not only entitled to receive the full Sum Assured on the cover of the primary policyholder but also to pay future premiums to keep their cover for this type of joint life insurance. Doesn’t matter.
For example , if the husband is 36 years old and the wife is 35 years old, then it will be more beneficial to take two joint insurance policies. Under the first joint plan, 50 lakh rupees and the second policy for 25 lakh should be taken. In case of death of husband, wife will get sum insured of Rs 50 lakh. Apart from this, his own life insurance of 25 lakhs will continue without paying the premium.
What is the savings in joint insurance as compared to single insurance?
If a 30-year-old youth takes a term insurance of Rs 1 crore, then he will have to pay a premium of about 12 thousand rupees annually. The same 27-year-old woman will have to pay an annual premium of about 9 thousand 500 rupees for term insurance of 1 crore.
In this way, if both of them take different policies, then they will have to pay a premium of Rs 21 thousand 500 annually. On the other hand, on taking an annual combined insurance cover of Rs 1 crore, a premium of about 20 thousand rupees will have to be paid. In this way you will have 1500 rupees annually.
Monthly payment option is also there
many insurance companies Joint insurance PolicyIn case of death of one of the partners in the benefit of Sum Assured to be paid monthly or opting for lump sum payment. The beneficiary provides the option of paying the cover amount in lump sum or monthly for up to 10 years.
In a joint insurance plan, parents can make their child a nominee. In the event of the death of the parents, the amount of cover is given to the children. The child can also opt for lump sum or monthly payments.
