Guide to Joint Life Insurance
Choosing a life insurance policy is as important as choosing a partner. You want it to be perfect for you. A joint life insurance plan with your spouse is simply a way of strengthening the bond of marriage.
What is joint life insurance?
Before you decide to invest, you need to know what joint life insurance is. It is an option to cover yourself and your spouse or in one contract. Hence, instead of buying two different life covers for yourself and your spouse, you can get multiple benefits from a single plan. In the cover, you and your spouse can get to be the nominee and the beneficiary. In case of an unfortunate event, the surviving spouse gets to be the beneficiary of the cover.
Advantages of a joint life insurance policy
There are numerous advantages of investing in joint life insurance plans. These are elaborated below.
When you compare the cost of buying two separate covers for you and your spouse, getting one cover for both of you will work out to be affordable. The premium will be lower than what you would pay for two covers.
- The cover is not restricted to married couples
A term life insurance for married couples is ideal but it is not restricted to only a husband and a wife. You can also choose to get a cover with your business partner or your parents can get a cover with you.
- Comprehensive coverage
With the increasing cost of healthcare in the country, there is a need for both the husband and wife to earn and run a household. Incase of loss of income due to unfortunate circumstances, the payout will help the dependents significantly.
Disadvantages of a joint life insurance policy
The plan comes with its own set of disadvantages, which you need to consider before making a decision.
- It will pay only once
Even though you and your partner are covered in the policy, it will pay only when the first individual passes away. If the survivor wants a life cover, he/she will have to buy a new policy.
- It could be expensive for the survivor
As the first partner passes away, the cover ends and the surviving partner will have to buy a new policy. The premium will increase with age and the survivor will end up paying a high premium than usual.
Joint life insurance can be ideal for those couples who are happily living together.However, this plan can have a complicated situation if a couple decides to part ways. The policy comes with its own set of pros and cons, which makes it essential to think twice before choosing such a cover.