Term Insurance Plans For Couples

Know the features of benefit of availing a couple’s term insurance plan, the top insurers offering such term insurance plans, premium cost and a host of benefits that will benefit both involved parties.
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What is a Term Insurance Plan?

One of the simplest insurance product available in the market, a term insurance plan provides the family of a policyholder the sum assured in the event of the latter’s demise. Customers can choose their required over amount, premium paying term, policy term and riders. Traditional term insurance plans offerseveral advantages such as higher coverage amount for a lower price in that the premium customers have to pay for regular term plans is lower compared to endowment or Ulip plans. It is important to note that there is no investment in traditional term plans.

Term Insurance Plans for Couples

Couples can either opt for separate term life insurance covers or joint life insurance cover as listed below:

  • Nuclear Double Income Families: Families with both the spouses working and sharing the household expenses take a joint term insurance cover or separate cover. According to experts, a working couple must buy term insurance policies to cover their family and dependants. The sum assured should be 10 times their annual income.

  • Cover for life: Securing the lives of their partners with the right policies will make their future less uncertain and more secure, come what may.

  • Future requirements: Marriage entails various kinds of expenses at various stages of life. It is important that couples save enough to cater to their family's future financial requirements such as tuition fees, house renovation and so forth.

  • Health concerns: Given that with increasing age, the health of most individuals, in this day and age, goes for a toes, it is advisable to opt for a critical rider benefit in term insurance plans to deal with any untoward health contingencies.

Types of Term Insurance Policies for Couples

  • Single life term insurance policy

  • Joint life term insurance policy

Separate Versus Joint Term Insurance Policies

There are several differences between separate and joint term insurance policies as listed below:

  • Terms and conditions: If a couple takes separate term insurance policies, the cost and terms and conditions of the policies can be chosen by each according to his or her specific requirements.

  • First death: Many joint life plans entail pay out upon the first death or first-claim basis. However, some joint plans entail payment of sum assured upon demise of each insured partner.

  • Single payout: In a joint policy, if a couple dies in an accident, the nominees will receive only one death-payment. In an individual policy, however, the nominees will receive two separate payouts.

  • Divorce/separation: In case a couple chooses to divorce, a joint insurance policy cannot be divided in that if one partner does not pay up (premium), the policy will cease. Experts, therefore, suggest that a couple should have separate policies, just in case.

  • Affordability: A joint term insurance policy, more often than not, is cheaper than two separate life insurance policies for a couple.

  • Convenience: Many couples opt for term life insurance policies owing to the ease of documentation in terms of coverage for both partners at one go.

Examples of Term Insurance Policies for Couples

  1. Bajaj Allianz iSecure Insurance Plan

  2. HDFC Term Assurance Plan

  3. Bajaj Allianz iSecure More Insurance Plan

The important features of Bajaj Allianz iSecure Insurance Plan are as follows:

  • A spouse can avail of the death benefit in monthly installments.

  • If your spouse is not included at the inception of the policy, he or she can be included at a later date

  • The minimum sum assured is Rs.2,50,000 while there is no limit to the maximum.

  • The policy term may range from 10 to 25 years

  • Premium instalments are listed in the table below:

Yearly

Rs.1,500

Half-yearly

Rs.750

Quarterly

Rs.400

Monthly

Rs.150

  • HDFC Term Assurance Plan

The important features of HDFC Term Assurance Plan are as follows:

  • Offers rebate on higher sum assured in addition to riders

  • Policy term can range from 10 to 30 years

  • The minimum sum assured is Rs.80000 while there is no limit to the maximum. The minimum premium is Rs.2000.

  • Tax rebate under Section 80D of the Income Tax Act, 1961 may be applicable on premiums accelerated sum assured under this policy.

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Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

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