Term Insurance Plans For Couples
Term insurance is one of the most preferred type of insurance that many people seek today. This is mostly because of the benefits it offers, which include pure risk protection at an affordable price. Couples who are looking to purchase an insurance policy have the option of either going in for a single life insurance policy or a joint life insurance policy.
Couples can either opt for separate term life insurance covers or joint life insurance cover as listed below:
• Nuclear Double Income Families: Families with both the spouses working and sharing the household expenses take a joint term insurance cover or separate cover. According to experts, a working couple must buy term insurance policies to cover their family and dependants. The sum assured should be 10 times their annual income./p>
• Cover for life: Securing the lives of their partners with the right policies will make their future less uncertain and more secure, come what may./p>
• Future requirements: Marriage entails various kinds of expenses at various stages of life. It is important that couples save enough to cater to their family's future financial requirements such as tuition fees, house renovation and so forth./p>
• Health concerns: Given that with increasing age, the health of most individuals, in this day and age, goes for a toes, it is advisable to opt for a critical rider benefit in term insurance plans to deal with any untoward health contingencies./p>
Separate Versus Joint Term Insurance Policies
There are several differences between separate and joint term insurance policies as listed below:
• Terms and conditions: If a couple takes separate term insurance policies, the cost and terms and conditions of the policies can be chosen by each according to his or her specific requirements.
• First death: Many joint life plans entail pay out upon the first death or first-claim basis. However, some joint plans entail payment of sum assured upon demise of each insured partner.
• Single payout: In a joint policy, if a couple dies in an accident, the nominees will receive only one death-payment. In an individual policy, however, the nominees will receive two separate payouts.
• Divorce/separation: In case a couple chooses to divorce, a joint insurance policy cannot be divided in that if one partner does not pay up (premium), the policy will cease. Experts, therefore, suggest that a couple should have separate policies, just in case.
• Affordability: A joint term insurance policy, more often than not, is cheaper than two separate life insurance policies for a couple.
• Convenience: Many couples opt for term life insurance policies owing to the ease of documentation in terms of coverage for both partners at one go.