All You Need To Know About Term Plan For Husband And Wife
Updated On Jul 21, 2021
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Many term plans also offer the advantage of adding a spouse into the plan. Where spouses together are policyholders, such policies are known as joint term plans. Most insurers offer policyholders the option of jointly getting a term plan with their spouses.
The plan offers a host of other benefits that could prove advantageous to both spouses, including multiple options for payment of premium along with multiple options to receive benefits. This means that the nominees of the policyholders can receive the sum assured either as a lump sum amount or as a monthly income or even take half as a lump sum amount and half as a monthly income. Additionally, they can also choose whether they wish to receive the sum assured as a fixed amount over the months or as an increasing income amount.
Why Should You Buy A Spouse Term Insurance Plan?
Increased Sum Assured
With a joint term plan for spouses, beneficiaries such as children will earn a higher sum assured. Ensure that you have opted for a term plan which makes pay-out for both spouses and not just one. This way, even if one spouse dies and their sum assured is paid; the beneficiaries will also receive the sum assured when the other spouse dies.
One of the things most people dread while buying an insurance policy or making any kind of investment is the paperwork that goes towards it. However, with a joint term plan, paperwork completion is much more convenient and there is hardly any hassle with documentation. The joint term plan can be brought about with minimal paperwork and maximum convenience. Along with offering a range of benefits including flexibility in payment of premium and payment of the sum assured upon policyholder’s death, the term plan also lets policyholders buy the policy with minimal documentation and maximum convenience. Additionally, if you opt for a joint term plan, the terms and conditions remain the same for both policyholders meaning you only need to study the policy’s fine print once as opposed to having two different term plans with differing terms, conditions and fine print in the policy document.
Term plans are considered to be among the cheapest forms of life insurance. However, the premiums payable on one term plan which offers coverage to only one spouse is significantly higher as compared to the premiums payable on a joint term plan. As a couple, it will always be more economically viable to pay for a single joint term plan that offers coverage to both individuals rather than pay for two separate term plans.
Waiver of Premium
Another reason that joint term plans are preferred for a couple over two separate term plans is that once one of the spouses has died, the other one receives a waiver of premium. This means that they no longer need to pay premiums to keep the term plan active. Despite them not paying premiums, the spouse will still be able to claim the policy’s benefits and their dependents will be able to get the sum assured on their death as well.
While opting for a joint term plan is much more convenient than buying two separate term plans for the spouses, it is always difficult to know which one works best for you. It is always ideal to understand your requirements first and then approach the insurer. If convenience and flexibility is one factor you cannot do without, buy from the insurer which lets you get a joint term plan with maximum flexibility in terms of premium payment as well as payment of the sum assured.
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.