VIP Class Notes (Lily) [R]

There is no need to mention the importance of Life Insurance policy. However, there are single policies these days, for both husband and wife, together. They are called Joint Life Insurance policies. If one of them dies, the other will get the insured amount. In case both die, compensation is paid to their nominees. This is the benefit. When you know all the details regarding these policies, you will understand how useful they are.

Earlier, it was imagined that life insurance meant only for the bread earner in the family. But because of the change in time, its importance has increased. As both husband and wife are working insurance has become necessary for both of them. Policies that ensure no one in the family is at a loss if either of them dies, are now being offered. All have to agree that in a family, not just the position of the man even the woman is important.

Facilities, benefits

If both partners are earning, their family will definitely have some needs, that is linked to their earnings. Loans and lifestyle will depend on what they are earning. The death of either of them will be a loss to the other family members, says Rithuraj Bhattacharya, policies design head of Bajaj Allianz Life Insurance. Experts suggest that even young couples need joint life insurance covers. If they have kids and have taken loans, it is better to have joint life policy, they say.

The most attractive feature of the policy is the compensation that is paid, when something untoward happens, rather than the cost of premium. Just imagine the condition of the children, when their mother, who has taken care of them passes away? The responsibility of the welfare of the children is vast. That is, it is essential that even housewives should have joint life insurance policies.

Joint Life Term Policy/separate term policy

Working couples can take separate term policies depending on their annual income. Or both can take a joint term policy together. Before taking either, it is better to know about the benefits and losses of both.

Joint Life Insurance policy envisages the same rules and regulations to both the partners. If they take separate policies, than the rules will be separate. There a variety among these policies. Some policies end when one of the partners expires and the compensation is paid. There is some disadvantage in this kind of a policy. Because, if one of them passes away, the fact that the other loses cover, is a big disadvantage.

If this happens after 40 years, and the surviving partner has to take a policy, then the premium will be high. Therefore, joint life insurance policy that not only compensates at the time of death of one of the partners, but also keeps the coverage active for the other, is preferred. Similarly, if both expire, the whole compensation should be paid. These policies are useful. A few joint insurance policies pay a part of the compensation when one of the partners passes away and the remaining is paid within the next 60 months.