Investing in a life insurance plan should be your foremost priority even when you are young. Life insurance plans act as an income replacement tool for your family in case something untoward happens with you.
Out of the various life insurance products available in the market, a term plan is the most sought-after insurance policy, as it offers a high sum assured at an affordable premium. If you are unclear about the term insurance meaning, then let us explain it to you in a simple way. Term insurance is a pure and simple kind of life insurance policy that safeguards the financial future of your loved ones if something unfortunate happens to you.
If you have just got married, then you have an added responsibility on your shoulder. So, you need to ensure that the monetary requirements of your spouse and other dependents are taken care of when you are not there to provide for them. While searching for term policies, you will come across joint term plans. In these policies, you have the facility of adding your spouse to your term plan, wherein she becomes a joint policyholder. There are many advantages of investing in a joint term plan. These include:
- Substantial sum assured
When you purchase a joint term plan, the sum assured received by the beneficiary of your policy is significantly high. However, to avail of this benefit, you need to opt for a joint plan that pays a death benefit upon the death of both spouses. For instance, if the husband passes away, the insurer pays the death benefit to the wife. Once the wife is no more, the insurer pays the sum assured to the child. So, here the beneficiary can receive the death benefits twice if both the policyholders die within the tenure of the policy.
- Affordable premium
The premiums of term plans are comparatively cheaper than any other life insurance policy. If you are considering buying two term plans, one for yourself and another one for your spouse, you may end up shelling out more money, as you are paying for two separate policies. Therefore, it is ideal for you to consider one joint term plan instead of paying premiums for two different term plans.
- Premium waiver
Another plus point of investing in a joint online term policy is the waiver of premium. Here, the insurer waives off the premium if something unforeseen leads to your or your spouse’s untimely absence during the policy period. So, the surviving spouse need not pay any premium, but the policy will remain active. In this scenario, the surviving spouse can claim the death benefit. Also, once both the spouses die, the dependents get the sum assured again.
- Convenient to buy
Paperwork is the most tedious task while buying any insurance plan. If you are investing in separate term plans for you and your wife, the paperwork will be double. However, if you apply for a joint term plan, the paperwork reduces to some extent. Besides this, you have to understand the term and conditions of the term policy only once, as these clauses are the same for both policyholders. Facilities like the flexibility of paying premiums, minimal documentation, and multiple payout options have made it simpler to purchase this policy.
Now when you know about the term insurance meaning in detail, start investing as soon as possible and secure the monetary well-being of your spouse and other dependents.
Selecting an ideal joint term plan can be a daunting task as numerous insurers are offering it. You can use the term plan premium calculator to compare the features, premiums, and other details of various policies offered by different insurance providers. With the help of a term plan premium calculator, you can get a suitable policy as per your family’s financial requirements.