A wedding heralds the start of a new life for the couple entering into wedlock, opening their eyes to a whole new world. The bond shared by a couple is unique, where two individual entities are amalgamated into one. While this new beginning is bound to be filled with joy and happiness, life can take sudden turns, changing the equation, and it pays to be prepared for such events. Life insurance policies for couples can be an ideal solution, offering specialised protection, ensuring that one is prepared for any future eventuality.
Benefits of Life Insurance for Couples:
A life insurance policy for couples offers a host of benefits to policyholders, some of which are mentioned below.
- Life cover for both spouses.
- Joint life insurance policies help a couple plan for the future.
- Additional riders can be added to a plan to customise it.
- Death and maturity benefits are paid (subject to individual policy).
- One can choose from flexible policy terms and premium payment modes.
- Rebates are provided for certain sum assured values.
- One can opt for maturity benefit/sum assured which suits their family requirements.
- Tax benefits are provided under Section 80C of the IT Act.
- It is possible to obtain loans/overdrafts (subject to individual policy practices).
- A joint/couple life insurance policy works out cheaper than an individual policy, making it a smart investment option.
Who can take Joint Life Insurance Policies?
These policies can be taken by couples who wish to be prepared for the future. One can opt for it at any point in their life (subject to meeting certain age restrictions), regardless of how many years they’ve been together. Life insurance for couples can also be gifted by well-wishers or family, to ensure that death doesn’t comes between their love.
How Life Insurance for Couples Works?
Joint Life Insurance policies or life insurance for couples as they are generally called are similar to traditional policies in most terms. The differences lie in the minute details, with most service providers using the term “Principal Life Assured” and “Spouse Life Assured” to depict the two parties in a policy. The principal life assured could be either the husband or wife, with the spouse life assured becoming the other partner. Premiums can be paid regularly, as is done in other policies. It is generally the principal life assured who chooses the policy term and other major details like sum assured.
In the event of death of Principal Life Assured, most plans allow for a waiver of future premiums, and the sum assured is provided to the spouse. Most policies pay the sum assured if the surviving member were to pass away during the policy term, tremendously lowering the burden on kids or family members.
Should I opt for a single life insurance plan or a joint life insurance plan with my spouse?
It is common for one to feel confused while opting for a life insurance policy, especially when it comes to choosing a joint/husband-wife life insurance policy. A joint insurance policy offers better benefits compared to two different individual policies, as one is entitled to save on premiums and taxes. Premiums for joint insurance policies are lower than two separate individual policies, enabling one to save more money for other activities.
Also, in the event of demise of one partner, the other could get waiver of future premiums, lowering the financial burden on the surviving partner. One also gets a wider cover compared to an individual policy, encompassing a broader range of services compared to an individual premium.
Life Insurance for Couples – Plans offered
Some of the popular Joint Insurance plans in India are mentioned below.
- Bajaj Allianz iSecure – This plan offers protection to the policyholder and his/her spouse, the benefits of which are mentioned below.
- One can opt for a sum assured which best suits the needs of a couple, with no upper limit on the sum assured.
- One can choose from flexible policy terms, ranging from 10 years to 30 years.
- Individuals following a healthy lifestyle get additional benefits.
- One can get rebates on premiums, depending on the sum assured.
- Policyholders are subject to tax benefits under the IT Act.
- LIC Jeevan Saathi Plus – This unit linked plan enables couples to take joint cover under a single policy. The benefits of this plan are mentioned below.
- Couples can choose a sum assured which best suits their needs.
- One can choose from flexible policy terms, ranging from 10 years to 20 years.
- Policyholders can choose from flexible payment options like yearly, half-yearly, quarterly or monthly.
- There is a 0provision to add additional riders to enhance a policy
- Term Insurance Plans
- Endowment Plans
- ULIP Plans
- Money Back Policy
- Whole Life Insurance Plans
- Pension Plans
- Life Insurance for Child
- Family Life Insurance Plans
- Group Life Insurance Policies
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GST of 18% is applicable on life insurance effective from the 1st of July, 2017