What is a Joint Life Insurance Policy: A joint insurance policy provides financial protection to married couples or business partners under a single insurance plan. The best feature of this insurance policy is that its cost is less than that of two different life insurance. With this it is also easy to manage.
What is joint life insurance Policy
Single life insurance ensures that your dependents are not financially harmed in the event of your death. Whereas under joint insurance, financial assistance is provided to two business partner or spouse.
This approach can be understood by the head of the household who contributes financially to running the household, even if his spouse does not contribute financially, he still discharges family responsibilities, so from the financial point of view of the partner’s death. Can be harmful.
In such a situation, combined life insurance plan can be very beneficial compared to any other life insurance plan. This is why it is worth considering taking a joint insurance policy that covers the financial loss that occurs after the possible death of the partner.
Joint insurance Better choice for married couple
It is clear from the name of joint insurance policy i.e. Joint Life Insurance Scheme that this insurance scheme provides financial security to two persons. According to financial experts, this scheme is a better insurance scheme for married couples. Under this, if one is not available during the period of insurance cover, the other gets the benefit of life cover.
What is Joint Endowment Plan
The endowment plan offers life protection as well as investment option. In this scheme also, two partners or spouses get the benefit of financial security. Like a joint term plan, insurance cover is also given for a fixed time. Many such companies also provide cover till the age of Jai Retirement. After retirement, the insurance holder gets a fixed amount, which is called an endowment.
PNB MetLife, Aegon Religare and State Bank of India (SBI) Life have recently launched 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 offers an endowment plan.
Types of Joint Life Insurance
- Insurance companies provide two types of plans under joint insurance, one of which is Joint Term Plan
- The second is Joint Endowment Plan. Let us know a little more about these two policies.
What is Joint Term Plan
In this type of joint life insurance, two persons are provided financial security for a fixed period in a single premium. Two persons can have a husband wife or two business partners. The term of insurance can be for 10-30 years. The insurance premium is determined based on the age and health status of both.
Taking a policy at a young age is beneficial as insurance companies charge a lower 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 expires.
Benefits of Joint Insurance Policy
After knowing what joint insurance is and what type of joint insurance is, we will know about the benefits of joint insurance policy. Joint insurance is better than single insurance in many ways, it has many benefits. So let’s know what are the benefits of joint life insurance policy.
How much will be saved from joint insurance over single insurance?
If a 30-year-old youth takes term insurance of Rs 1 crore, then he will have to pay a premium of about Rs 12 thousand 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 take different policies, then they have to pay a premium of Rs 21 thousand 500 annually. At the same time, a premium of about 20 thousand rupees will have to be paid for taking an annual joint insurance cover of Rs 1 crore. In this way, you will have Rs 1500 annually.
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Insurance management is also easy
The primary benefit of a joint term plan is the convenience associated with it. It is much easier to operate one insurance than two different insurance policies. Therefore, taking a joint insurance policy would be better than taking two separate insurance policies. In small families, both spouses can also take advantage of shared assets and joint collateral.
If the married couple is working then it is a better option for this because in today’s time financial responsibility is equal on husband and wife. From home loan to car loan both are named, in such a situation, both need equal financial security. According to this, combined life insurance policy is a better option.
Premium rate is also low
One benefit of combined 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, while the premium for joint life insurance cover will be much cheaper than the two insurance covers.
In joint insurance, the premium is reduced after the first insurance installment is paid. If a partner dies, the surviving spouses are not only entitled to receive the full assured amount on the cover of the primary policyholder but also to pay future premiums to keep their cover for this type of joint life insurance. Does not matter.
For example, if the husband is 36 years old and the wife is 35 years old, then taking two joint insurance policies will be more beneficial. Under the first joint plan, Rs 50 lakhs and the second policy should be taken for 25 lakhs. In case of death of husband, wife will get insurance amount of Rs 50 lakh. Apart from this, his own life insurance of 25 lakh will be continued without paying the premium.
There is also a monthly payment option
Many insurance companies offer the option of paying insurance amount monthly or in one lump sum in the event of death of a partner in the benefit of joint insurance policy. The beneficiary gives the option of making a lump sum or monthly payment for 10 years.
In joint insurance scheme, parents can make their child a nominee. In case of death of parents, the amount of covers is given to the children. The child can also opt for lump sum or monthly payment.
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