Every individual’s life can be divided into specific milestones. Amongst the rest, marriage can be one of the most crucial milestones of your life. Marriage can be a joint partnership. When you get married, you might share responsibilities with your partner jointly. Right from household chores to financial duties, you might equally divide everything with your spouse. Since you and your partner might bear the whole responsibility jointly, you might be unable to imagine your lives without each other.
While your partner might cherish your presence, it might be difficult to bear the financial burden in your absence. Although you might be unable to predict your death, you can prepare your loved ones financially to maintain their current standard of living, even in your absence. Ideally, you should buy term insurance to safeguard the future of your spouse. Before you purchase a plan, let’s understand what is term insurance in detail:
Term plans are the purest form of insurance, which aims towards the financial security of your loved ones. Since it focuses on the financial safety of your loved ones, a term plan can offer a payout called death benefit in your absence. As the nominee, your spouse can decide whether to obtain the death benefit as a monthly income or lump-sum amount.
While choosing a term plan, you might come across various options to choose from. Typically, term insurance can be of two major types:
- Single premium term insurance
A single premium term policy can let you pay the whole lump-sum amount at once at the time of purchase.
- Joint premium term insurance
Under a joint premium term policy, you can receive a dual coverage with different premium value and applicable terms and conditions.
Both these policies are completely different from each other. While a single premium policy can be advisable for an investor, joint coverage can be applicable for couples or partnerships. Although single premium coverage might seem preferable to you now, you should not buy it since it can become irrelevant if your spouse is financially independent. Ideally, you should buy joint term insurance cover due to its many benefits. Therefore, let’s go through the following benefits of joint coverage term policy:
- Dual coverage
Unlike an individual cover, joint term insurance can provide you with dual coverage that allows you to meet the financial requirements of your spouse. Although it can offer extended coverage for your spouse, the pay-out can be limited when it comes to claiming death benefits after your or your spouse’s demise. The coverage can end with the demise of your demise irrespective of the fact that it is a broad coverage.
Buying two single premium policies can be expensive. However, joint term insurance can be relatively cheaper since there can be non-variation of different premium value. You can receive additional term insurance tax benefits. Typically, you can claim a deduction up to Rs. 1,50,000 on your taxable income. Therefore, if you are looking for a joint coverage for you and your spouse, you should buy a joint term insurance plan since you can receive dual term insurance benefits at an affordable rate. Moreover, if you buy joint online term insurance, you might have to pay a relatively cheaper price than offline purchase.
In a nutshell, the primary goal of every term insurance policy can be to offer financial support to your loved ones. Although the primary goal remains the same for an individual cover as well as joint term life insurance, you should consider your financial requirements and make a final purchase accordingly. However, purchasing a joint coverage can be a lot more advantageous since the financial security of your spouse and children can be guaranteed in your absence.