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What Is Joint Life Cover Insurance? Should You Buy It?
Joint life covers as the name suggest is a term insurance cover that provides for financial security against the life of primary as well as secondary policyholder (who in the case is spouse). The origin of such a policy comes in from the fact that majority of population now happens to be in the bracket where both the partners are working and so need to be insured.
Insurers offering joint life insurance cover
PNB Met Life
Aditya Birla Sun life Insurance
Aegon Insurance
It is in general a contract under which both of the partner's can be covered and much like the plain term plan you need to pay premium for a fixed term and are insured until some years and in case of any death even, the other policyholder can make the claim.
Now, before you consider the option, here are listed the advantages and disadvantages of the plan:
Advantages
1. In the joint life cover, in case the primary policyholder dies claim in its respect is paid and the cover for second life insured continues until maturity with future premium being waived off for him or her.
2. In the case when the second insured person dies, the sum assured value in its respect shall be paid-off and for the premium amount for the first policyholder, the amount shall be reduced to the extent which was payable when the policy was running for a single insured person.
3. A more suitable option in case the second spouse is not earning. In most cases, the coverage extended for the second spouse even if she is non-working happens to be in the range of 25-50% of the sum assured value of the primary policyholder that is equal or more than Rs. 50 lakhs.
Disadvantages
1. The policy is available in most of the cases only when the sum assured for the primary policy holder is over or equal to Rs. 50 lakhs in value.
2. Moreover separate policies for each of the working partner provides greater flexibility in respect of the cover and features.
3. When considering the premium aspect, the policy isn't cost-effective even in the light of the premium waiver facility for the second insured person if he or she happens to be working.
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