Advantages Of Purchasing A Joint Life Insurance Policy
Updated On Jul 28, 2021
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In the present times, a lot of families have double incomes because both the spouses are earning members of the family. Therefore, both the spouses ideally should invest in life assurance policies. Basically two choices are available to them. They may choose separate life assurance policies in their individual names, during which they might each get a separate cover. The second option may be a single policy , which provides one insurance cover to both of them. This is called a Joint life assurance Policy. Joint policies are often taken on the lifetime of the whole family including children.
Advantages of Joint Life Insurance Policy
Here's a list of Advantages of joint life insurance policy.
1. Single Contract
Couples who choose joint insurance cover roll in the hay under one contract with the insurer. This helps in reducing paperwork for them and increases management efficiency of their policy documentation.
2. Single Premium
Another attraction of joint policy is that both the assured parties pay one premium. This means that it requires one transaction which provides cover to both of them.
3. Lower Premium
When couples choose a joint life assurance policy, they pay a lower annual premium than they might have paid had they opted for individual policies. This makes joint insurance a more attractive and lucrative option for those that are on a strict budget and have a limited amount to take a position in insurance.
4. Naming One Another As Beneficiaries
Each assured party can name the opposite because the beneficiary under the joint life assurance policy. This means that both the spouses can get the advantage of one policy and still have one another as beneficiaries under the policy.
5. Maturity Benefits
Joint life assurance is cheaper than individual life assurance , but the maturity benefits of the former are much less than the latter, just in case of endowment policies. Also, just in case of insurance , the insured amount is going to be lower.
Both joint as well as individual life assurance policies have their advantages. The principal advantage is that under both, the assured get an inexpensive life assurance cover. The couple faced with this decision has got to weigh the prices and benefits of their decision and make it accordingly. Two important factors that influence a few during this regard are the premium cost of the policy and therefore the cover that's assured. When the couple is on a budget and has limited resources to spare for insurance, joint life assurance cover can give them an honest protection at a lower premium.
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Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.