All you need to know about Term plans for husband and wife
The topic of family’s responsibility or securing them financially, usually gets connected with the male member of the family. As traditionally in an Indian household, the male member is the breadwinner for the family, and he is the one who takes the financial decision in the family. However, with the change in people’s thought process and societal norms, more and more women are equally sharing this responsibility with men. And thus, both men and women need life insurance cover. Looking at this scenario, insurers have come up with term plans for husband and wife under a single insurance policy.
Moreover, it is not always about working individuals need insurance. Non-working members like homemakers also require insurance coverage due to the rising number of lifestyle diseases and healthcare costs. Term plans for husband and wife have become as necessary in today’s time as any other insurance policy.
But as per the Insurance Regulatory and Development Authority of India (IRDAI), a non-working member is not eligible to have term insurance. So, in such a case, the working member (husband or a wife) can purchase a term plan for his or her spouse. However, certain insurance company’s provides term insurance coverage only for housewives.
Let’s understand what is meant by Spouse Term Insurance.
As the name suggests, Spouse Term Insurance refers to term plans for husband and wife. In such a term policy, one can cover oneself along with his or her spouse. These kind of term policies are comprehensive protection plans offering multiple benefits to both husband and wife. However, it is crucial that before buying a spouse term insurance one should do thorough research about the policy, its terms and condition etc.
Benefits of having a term plan for husband and wife
High Sum Assured: In case of term plan for spouse, the nominees like children get a higher sum assured. One needs to ensure that they have opted for a term plan for husband and wife and not just for one. So, if one of the insured dies, then their Sum assured is paid to the beneficiary.
Cheaper premiums: The premiums paid for a spouse term insurance which cover both husband and wife will be less expensive than the premiums paid for single term insurance. As a couple, the premium charges will come out to be economical rather than paying for two separate term insurance plans.
Waiver of Premium: In term plan for husband and wife, if one of them dies, the other one gets the waiver of premium. This means that they don’t need to pay the premiums, and the insurance policy will remain active, and the spouse will be able to enjoy the policy’s benefits. And the beneficiaries will receive the Sum assured upon the demise of the other spouse.
So, below are the details of some term plan for husband and wife or spouse term insurance.
Aegon Life iTerm insurance plan: Aegon Life Term insurance plan offers spouse coverage for housewives. However, if the policyholder (husband) has taken term policy from any other insurer then also he can get spouse coverage worth Rs 25 lakhs.
Canara HSBC iSelect+ term plan: In Canara HSBC iSelect+ term plan the policyholder can opt for coverage for spouse whether working or non-working under the plan option ‘Life’. The definition of working and non-working spouse will be according to the company’s BAUP. The coverage option for a non-working spouse needs to be chosen by the policyholder at the time of the policy inception, and it cannot exceed Rs 25 lakhs. Whereas a working spouse has the option to select the Sum assured, which will be based on his or her income.
Max Life Smart term plan: Under Max Life Smart term plan, only housewives are eligible to get spouse coverage maximum up to Rs 40 lakhs. To get the coverage, the husband should have more than Rs 10 lakh income and opted for twice the cover proposed. The husband and wife (spouse) should be graduate and above.
Overall, whether working or not, life insurance coverage is a must for everyone. But before buying insurance coverage like spouse term insurance one should delve into its features, clauses, guidelines, benefits and even eligibility criteria. As in certain spouse term insurance coverages, the insurer only offers coverage for housewives or in some policies this option is available as a rider. So, it is necessary to check before making the buying decision. If you are planning or looking for a spouse term insurance plan, then you can visit BimaKaro.in, speak to their insurance experts and seek clarity on all your concerns.