Life Insurance For Couples

Getting married can be a beautiful feeling as it welcomes the beginning of a new chapter where two people come together to partake in each others happiness and sadness and be the support system for each other. As the couple work together to bring their dreams to life, a tool is required so that their goals can become a reality irrespective of whether one of the partners is around or not. As families in India are becoming smaller and both husband and wife more career oriented, a joint life insurance is a must which should be availed by the couple to ensure that nothing comes between their goals and no situation can stop them from achieving them.

Benefits of Life Insurance for Couples:

A joint life insurance policy provides various benefits to a couple, some of the benefits offered by them are:

• A joint life insurance can be cheaper as compared to an individual life insurance.
• Both the partners get life cover.
• Tax benefits are given under Section 80C of the Income Tax Act, 1961.
• The couple can be eligible for death and maturity benefit.
• The couple get the flexibility to choose their own policy term and mode of premium payment.
• Option to avail a rider or add-on plan.
• Discounts are given on certain sum assured.
• Loan can be obtained under certain joint insurance plans.

Who can take Joint Life Insurance Policies?

Any couple can take a joint life insurance policy. This policy is ideal for those couple, where one of them is a homemaker or is in a low income job. The best time to take a plan is when both the individuals are in their 20s or 30s.

How does Life Insurance for Couple works?

Joint life insurance policies are very much similar to a normal life insurance except that the former will have two persons becoming a part of the policy .i.e. ‘Principal Life Assured’ and ‘Spouse Life Assured’. One of the persons will become the principal life assured and will decide the sum assured and premiums they will pay.

Incase the principal life assured dies due to any unfortunate event, the sum assured will be paid to the spouse life assured and vice versa. In short, these kind of policies allow a couple to be both the owner and the beneficiary as well. A joint insurance policy ensures that one of the partners does not suffer financially incase the other individual is no more.

Should I opt for a single or a joint life insurance plan with my spouse?

A couple can opt for a seperate insurance policy of their own, but it is highly recommended that they do go for a joint life insurance plan. It is also relatively cheaper as compared to single life insurance policies which allows the couple to plan for their future.

Incase of death of one of the partners, the other person gets the sum assured. Various companies provides waivers and discounts on future premiums payable in the event of the insured’s death which takes off a huge financial burden off the other person’s shoulder.

As mentioned earlier, a joint life insurance is very much ideal if one of the person is in a low income job or is a homemaker.

Life Insurance for Couples- Plans Offered

Some of the joint insurance policies which are offered in India are:

ICICI Prudential Joint Life Smart Parent Plan:

This is a ULIP based plan. Some of the benefits which a couple can enjoy are given below

• A lump sum is provided as and when the policy matures in order to help the couple fulfill their future goals such as education of their children, marriage of their children, etc.
• Incase of unfortunate death of one of the parents, a lump sum is given so that the surviving parent can take care of the immediate financial requirements.
• The plan has a policy term and premium payment term of 10 years.
• Policyholder can choose one of the modes of paying his/her premiums .i.e. yearly, half-yearly or monthly.

LIC Jeevan Saathi Plus

It is a unit linked plan which not only provides cover but also allows the Principle Life Assured to choose the sum assured he/she wants for himself/herself and his/her partner depending on the mode of premium payment and the premium amount he/she will pay. Some of the other benefits which a couple can enjoy are given below:

• The couple have the liberty to invest in upto four investment funds.
• There is an option to withdraw a certain amount of money from their fund/s.
• In the event of one of the life insured's death, the other life assured can ask the death benefit to be transferred to the policyholder’s funds.
• The policyholder can also switch from one fund to another.
• Additional premiums or top-up premiums can be paid without increasing the sum assured.
• One can choose flexible policy terms ranging from 10 years to 20 years.

SBI Life Insurance Smart Humsafar

It is a joint non-linked endowment plan which not only provides cover to the couple availing this plan but also saves money which would help them in future. Some of the other benefits a couple can enjoy are given below:

• The policyholder has the option to choose flexible policy terms ranging from 10 years to 30 years.
• Option to choose the mode of premium payment which are Yearly, Half-Yearly, Quarterly and Monthly.
• This plan provides various tax benefits under Section 80C and Section 10(10D) of the Income Tax Act,1961.
• A guaranteed bonus of 2.50% on the sum assured is provided for the first three policy years.
• The policyholder can also avail rider plans under this plan.
• In the event of death of one of the life assured,future premiums are waived off for the other life assured.
• Maturity benefit is payable if one or both the life assured survives the policy term.