Joint life insurance, as the name suggests, is a single policy that covers both husband and wife. A compound term plan, like a joint life insurance policy, guarantees financial security for the home in the event of the death of one of the policyholder's girlfriends. Community life insurance premiums must be paid periodically, just like personal risk contributions.
Joint life insurance, as the name suggests, is a single policy that covers both husband and wife. A compound term plan, like a joint life insurance policy, guarantees financial security for the home in the event of the death of one of the policyholder's girlfriends. Community life insurance premiums must be paid periodically, just like personal risk contributions.
If one of the members dies during the insurance period, the other member can apply for insurance. After the due date has passed, there is no pension benefit related to part-time insurance. Married couples may ideally have a joint life insurance policy, but there are no restrictions on who can purchase the insurance.
Any two of hers can take out a joint life insurance policy to secure each other's future. For example, a parent and their children may choose joint life insurance. In the event of a parent's untimely death, plan payments can cover financial security for the family and other large expenses such as schooling.
How does the community work? Understanding what joint life insurance is can help you plan your finances more effectively. Put your hard-earned income into tools that help you further improve the financial security and prosperity of your loved ones.
Understand what joint life insurance is and how it works.
Most community life insurance policies available today cover up to 50% of the policy amount for the policyholder's spouse. In the event of the death of the primary insured person, a fixed monthly benefit will be paid to the spouse living with the insured person. This also depends on the payment frequency specified by the policyholder.
The policy remains in effect even if the policyholder dies in an accidental accident. In this case, the insurance money will be distributed to the surviving family according to the terms of the joint life insurance. Cohabitation insurance also waives premiums in the event of the death of the policyholder to reduce the financial burden on the surviving partner.
If both policyholders do not survive due to unfortunate circumstances, the insurance proceeds are distributed to the policy beneficiary or legal heir. If one of the spouses is unemployed, the sum insured under the joint life insurance shall not exceed the maximum insured amount of the principal insured.
Types of joint life insurance
If you are looking for a joint life insurance policy that provides comprehensive coverage for yourself, there are options available just like regular insurance. This is either a donation plan or a simple recurring plan.
Let's take a look at the types of joint life insurance available to policy purchasers.
1. Common runtime plan
As with a regular term plan, you and your spouse pay a premium for a set period of time to remain insured under a joint life insurance policy. During this time, if one of you has an unforeseen accident, you can claim the life insurance money. Once this is completed, the joint life insurance coverage will end.
2. Common basic plan
A combined lump sum life plan offers the benefits of both investment and insurance. It is usually valid for a certain period of time before retirement. When the policy period expires, the insurance company pays you an amount called a claim. Joint lump sum life insurance works in much the same way as regular lump sum life insurance.
This doesn't change even if one of the policyholder's girlfriends suffers an unfortunate event. In this case, the surviving partner will receive the cover and contribution after the agreed deadline. Retirement benefits can also be used for endowment insurance. However, after the first death, you are not required to continue paying premiums.
Benefits of Joint life insurance
Joint life insurance has several advantages. Some of the many benefits that come from investing in this type of insurance plan are briefly discussed below.
1. Joint life insurance is cheap
One of the most notable benefits of having a joint life insurance policy is the cost savings it brings. Community life insurance has significantly lower premiums than other policies. Enjoy the benefits of double coverage at an affordable price
2. Replacement of income in the event of death of the insured person
In the event of the death of the insured, the beneficiary can benefit from monthly installments of the insurance. This allows you to better organize your budget and create a steady stream of income. Policyholders can choose between a lump sum payment and monthly installment payments for their contract, depending on their family's needs.
3. Tax incentives for already paid insurance premiums and death benefits under cohabitation insurance
Premium payments are deductible under Section 80C of the Income Tax Act (Income Tax Act). Otherwise, death benefits received from the beneficiary are tax exempt pursuant to Section 10 (10D). Premiums paid for insurance policies are deductible in accordance with Section 80C of the Income Tax Act (Income Tax Act). Otherwise, death benefits received from the beneficiary are tax exempt pursuant to Section 10 (10D).
questions
Is joint life insurance better than separate plans?
Joint life insurance is usually cheaper than two separate policies. Once paid, the policy will automatically terminate and the remaining partner will remain uninsured.
Therefore, it depends on your insurance requirements and other personal factors such as your life stage, source of income, and health status when you purchase community life insurance.
What happens to cohabitation death benefits?
Suppose Mr. and Mrs. Sharma have a joint life insurance policy. Mr. Sharma, the sole breadwinner of the family, opted for the promised amount of Rs. 500,000 rupees. Ms Sharma is entitled to receive her pledge amount of INR 25,000 in her case. Mr Sharma is now entitled to receive INR 50,000 from the insurance company if he dies within the policy period. If Mr. Sharma dies in due time, Mr. Sharma will receive INR 25,000 from the insurance.
In the case of a lump-sum payment, the policy will be canceled if either of the policyholder's spouse receives the death benefit. If both die at the same time, the beneficiary of the plan will be paid.
What happens to insurance after a divorce?
Your ex-spouse, even after a divorce, can take out life insurance to protect you and pay him a death benefit if you die. can be canceled or changed only by
Is mutual insurance only for married people? Joint life insurance is ideal for married couples, but it is not limited to them. Unmarried couples and possibly business partners can also benefit from this.
Who should have a joint life insurance policy?
In general, couples are more likely to consider joint life insurance as it has proven to be cost-effective in the long run. In the event of the death of one of her partners, the surviving spouse is not only entitled to full principal coverage, but also future premium payments to keep the joint life insurance policy in force. Exempt.
Also, joint life insurance is not just for married couples. Also available for business partners. This allows a wide range of people to use life insurance to protect corporate interests. Once you are familiar with joint life insurance and its benefits, you can decide if it is a good fit for your life goals and financial profile.
Parents can also option for joint life insurance with their children. In this way the child is protected in case of the untimely death of the parent. Life insurance can help protect your child's financial security. This is especially important given the skyrocketing costs of education, healthcare and even daily household maintenance.
