Gone are the days where there is only one breadwinner in a family. All genders are now equally considered and respected, and regardless of the gender, most adults contribute to the family income.
Insurance companies also understand this and have introduced joint insurance plans, even in term life insurance. Let’s look at what a term insurance is first.
Through a term insurance plan, you can insure yourselves for a fixed amount of money for a fixed amount of time. The idea is that, if something unfortunate is to happen to you, your beneficiary gets a financial aid that will help them stay financially afloat.
What is a joint term plan?
In a joint term plan, you and a family member, which is in most cases- your spouse, can subscribe to one single term life insurance with equal benefits.
The biggest advantage of a join term insurance is that there is only one plan to take care of, and a single, combined premium to pay.
In most joint plans, if a partner passes away during the course of the plan, the surviving partner will get the insured sum. This insurance amount would be paid as a lump sum or as monthly payments, according to your insurer’s terms and conditions.
If both parties pass away together, their heir gets the insured sum of both, in most cases.
And, as in any other term insurance plan, if both parties survive the period of the insurance, the premiums will not be repaid, unless appropriate riders are added.
How is normal term plan different from joint term plan?
In a normal, single person term plan, the insurance will only cover a single person. So, if you are a couple and both partners are to be covered, there need to be two different term insurance policies. But it gives you the liberty to choose individual plans that could suit you better than your partner.
In a traditional term plan, the beneficiary, which could be your partner or any other family member, will get the claim amount.
How to choose between a term plan and a joint term plan?
Choosing between a term plan and a joint term plan comes down to your personal preferences. Here are some points that can help you with your choice-
- Age – For younger people, term life insurance premiums are much lower. If you and your partner are in your 20s, you could choose two different term plans that will suit each of you better. If you are middle-aged, your term insurance premium could be significantly higher, and a joint term plan could help save you money.
- Occupation – Today, surviving in a single person’s income could be difficult for a family and those occasions are rare. Even then, if you or your partner is currently out of employment, a joint plan could help in saving money on the term insurance.
- Uncertainties – While life is sweet when things go as planned, uncertainties could happen at any time. Divorce is one among them. If you are a married couple and if you get divorced, maintaining your joint plan could get tricky as most insurers don’t have proper guidelines yet regarding this.
How to purchase a joint term plan online?
Purchasing an online term plan is easy, doesn’t matter whether it’s a joint plan or not.
Most insurance provider websites have options that will let you choose exactly the plan you want. You could also use a term insurance calculator found on these websites to figure out the premium according to your needs for both types of term life insurances.
In a joint term plan, the only difference would be that you will need to do additional documentation regarding your partner as well. The documentation will mainly include the medical details of both parties.
If you are yet to purchase a term insurance plan, joint or not, it is highly advisable to buy one as soon as you can, especially when online term plans can be bought in a matter of a few clicks. Get insured today and make sure your family is well protected!