Spouse plans

Traditionally it is believed that life insurance plans are designed to safeguard the life of a family’s breadwinner. However, with the changing lifestyle where women are giving head-to-head competition to male community in every field, an increasing need of spouse or couple insurance plans have witnessed a rise in demand.

Newly married couples has a lot of responsibilities and of course, fantasies to fulfil; and all this comes with additional set of expenses that may burn a hole in the budget unless finances are planned wisely.

Joint insurance policy is one of the greatest financial tools that give peace of mind during a rough patch of life. One can choose the plan according to their needs and requirements; and financial budget as well.

We all are well aware of the term ‘insurance’ where the family or nominee of the policyholder receives sum assured in the event of latter’s demise. But, joint insurance plans come with double benefits offering the opportunity to cover oneself along with spouse under a single plan. Spouse plans give due recognition to the fact that spouse’s life is equally important, where the insurance company offers payout on death of either one of the couple, though the policy expires post making the claim. Also, some policy plans assure regular income to pre-specified surviving family members in the event of policyholder’s demise.

Also to be noted that joint life insurance plans are cheaper than the traditional policy plans as both insured individuals pay a single premium for a fixed period. This doesn’t make any financial burden over the couple and thus, they can keep a better balance of their lifestyle.

Types of joint policy plans:

Just like an individual insurance plan, there are options available in the Joint life insurance category as well. So, let’s check out the types of spouse plans available under this category.

Joint term plan – This is somewhat similar to that of regular life insurance, but the only difference is that the insured couple pays a joint premium for a policy term. During the term either of them can claim the sum assured in case of latter’s demise. However, the policy expires after the sum assured is being claimed. Another policy can be purchased at a revised rate of premium.

Joint endowment plan – An endowment plan has an investment aspect along with life cover benefits. The policy plan is valid for a pre-specified term, ideally until insured’s retirement begins. Post the policy term, the insurance company pays the insured a certain amount, which is called as the ‘endowment’.

Benefits of spouse policy plans:

Cheaper premiums – When compared to traditional policy plans, joint policies have cheaper premium rates with double benefits. Also it’s easier to negotiate the premium rates with insurance company. This way you can avail added benefits at comparatively lower premiums.

Better financial management – As there is no need to sign in for individual policy plans, it avails better financial management and budget setup. Better financial management gives peace of mind while keeping a balance between income and expenses.

Alternative income – As a matter of fact, the inflation rate is rising with each passing year, which gives a serious financial or income concern post demise of family’s breadwinner. Losing a family member is a terrible feeling and sudden loss of income can only add to the nightmare. However, with spouse plans, you can secure your surviving family financially. Most insurance plans come with regular income option, where the sum assured is not paid in lump-sum; instead it is paid as regular income post insured’s demise.