What is the importance of term insurance for couples?
A joint term insurance plan refers to the term insurance for couples. It is a single protection plan offering life cover for two people or to be a specific couple. People often are not aware of this kind of feature in term life insurance, but there are several benefits of buying term insurance for couples. So, let’s understand the importance of purchase such term insurance.
Benefits of term insurance for couples
Joint life coverage: The primary benefit of purchasing term insurance for couples is under a single policy; you get a solitary spread for both yourself and your spouse. However, some policies include both husband and wife under the term while specific covers only wives. You don’t have to purchase two separate life covers. Keeping up two-term insurance plans might be troublesome and precarious. Thus, if you have a single term policy, you will simply need to fill and submit one application form, provide a single set of documents, and maintain a sole policy document. Similarly, you need to pay the premium for one policy only, and that makes it simpler for you to recall the due date for the installment, as compared to remembering multiple due dates.
Reasonable priced: A term insurance for couples offer life coverage for both the individuals (husband and wife) at considerably low cost. Since a solitary life insurance policy covers two individuals, you get a higher life cover at a lower, relatively affordable rate. Whereas, if you purchase two separate policies, the premium for both the policies will be higher than the single premium of the term insurance for couples.
Payout options: A term insurance for couples which is also referred to as joint term insurance offers numerous payout choices to the policyholders. Most importantly, you can pick how the insurance coverage amount will be divided under an insured couple. You can either opt for a single payout wherein the entire sum assured will be paid in case any one of the insured person dies, or you can choose two separate payouts, each paid after the demise of the anyone of the policyholder. And if both husband and wife die at the same time than the sum assured, or the death benefit amount gets paid as a single amount. Thus, the joint term insurance offers a lot of flexibility, making it simpler for you to select the payout option best suited for your family.
Tax benefit: The premiums paid towards term insurance for couples are eligible for tax benefit under Section 80C of the Income Tax Act. Premiums paid up to Rs 1.5 lacs in a year comes under tax exemption bracket.
But if you think that why term insurance for couples is required? So, here are a few pointers to enable you to comprehend:
Life cover for working couples or partners: In case both the partners are working; at that point, joint life insurance is undoubtedly needed. The salaries of life partners are used to fulfil the family’s bill and day to day requirements. From the EMIs to the medical costs, all are divided between the accomplices. So, if something happened to one of the partners, the life cover amount helps in filling the gap such that the family continues with their lifestyle even if a portion of the income stops.
Life cover for a non-working partner or stay-at-home parent: It’s not necessary that in every family both the partners will be working. In the majority of cases, only one of the partners works and the other stay at home, taking care of the household chores, especially kids. And thus, there is a massive misconception that those staying at home do not require life insurance coverage. A non-working partner also unquestionably requires a term insurance coverage because such an individual may not add to a month to month income. Still, the amount of work he or she does add to the overall financial prosperity of the family. In his or her nonappearance, the family would need to enlist a cook, a driver, a caretaker and so forth. Hence an individual who does so many tasks needs to get ensured under a joint term life plan as, after his or her demise, the family can utilize the death benefit to fill the financial gap.
These are some appropriate reasons concerning why both the husband and the wife need to remain secured under term insurance for couples. The joint term insurance is extremely helpful, which you can understand from the pointers mentioned above. However, you need to look carefully which term insurance plans the feature to cover both the partners, compare the plans and then decide. To get more clarity on the same, you can visit BimaKaro.in and speak to their insurance experts to make the right buying decision.