Spouse Term Insurance Plans

In the UAE, where many families depend on a single income or have significant financial commitments like rent, loans, or children’s education, spouse term life insurance is a practical way for couples to secure their future together.

What is Spouse Term Life Insurance?

Spouse term insurance, a type of life insurance policy, is specifically designed for married couples. It provides financial protection to the surviving spouse and dependents in the event of either partner's untimely demise. These plans often offer joint coverage, meaning both the husband and wife are insured under a single policy, with the death benefit paid out upon the death of either partner.

Spouse term insurance aims to secure the family's financial future, ensuring that the surviving spouse and other dependents can maintain their lifestyle and meet financial obligations without hardship. In addition to this, this couple term insurance for husband and wife is introduced to recognise the role of both wife and husband, boosting the fact that the lives of both individuals are equally essential.

With some term insurance plans, you can add riders to your couple term policy and enhance the coverage. Some of the basic term insurance riders are critical illness cover, accidental death rider, dismemberment, and permanent disability add-on.

Benefits of Spouse Term Insurance Plans

Term insurance for spouses does more than just offer protection, it creates a financial safety net that supports couples and their families when it’s needed the most. Here are the key benefits —

1. Financial Security for the Family: The death benefit ensures that the surviving spouse can cover essential expenses like rent, household bills, outstanding loans, or medical costs, without facing sudden financial strain.
2. Income Replacement: If the earning partner passes away, the payout serves as a substitute for lost income. This allows the surviving spouse to manage living expenses, childcare, and other daily needs without compromising on quality of life.
3. Protection for Homemakers: Even if one spouse does not earn an income, their contribution to the household has financial value. Covering a non-working spouse ensures the family is safeguarded if the homemaker passes away.
4. Support for Children’s Education: The lump sum can fund school or university fees, ensuring children’s education continues smoothly despite the loss of a parent.
5. Affordable Coverage: Compared to other life insurance types, term insurance offers high coverage at relatively low premiums, making it cost-effective for couples at any life stage.
6. Flexible and Customisable Plans: Couples can tailor the plan by choosing coverage amount, tenure, and add-ons (riders). Common riders include:
   • Accidental death benefit
   • Accidental disability benefit
   • Critical illness cover
   • Waiver of premium
   • Accelerated death benefit
7. Simple Policy Management: Since both partners are insured under one plan, there’s only a single policy to track – one premium, one renewal date, and one set of documents.
8. Peace of Mind: Knowing that your partner will be financially protected, no matter what happens, provides both spouses with confidence and security in planning their future together.

Who Should Buy Spouse Term Insurance Plans?

Now, the question arises - who should buy a term insurance plan for husband and wife? Generally, couple term insurance plans are ideal for married couples, particularly those who want to ensure their partner's financial security in the event of their death.

Here are some situations in which spouse term insurance plans may be a good fit -

• Couple term insurance is designed for married couples who want to secure their partner's financial future. 
• Both working and non-working spouses can benefit from this type of insurance.
• If you have children, a spouse term insurance plan can be of great help. It will provide funds for your partner to cover childcare, education, and other expenses in case of any unfortunate circumstances. 
• If one spouse is financially dependent on the other, a couple term insurance plan can provide the necessary financial support for the dependent spouse if the breadwinner passes away.
• If you and your spouse have outstanding loans or debts, such as a mortgage or car loan, couple term insurance plans can help ensure that the surviving spouse isn't burdened with these financial obligations after the other's death.
• If one spouse earns significantly more than the other, the insurance plan can help replace the higher-earning spouse's income in the event of their death, ensuring that the surviving spouse maintains their standard of living.
• Another remarkable benefit of a spouse term insurance plan can be observed in the retirement years. An appropriate couple term insurance plan will provide financial security for the surviving spouse during their retirement if the other spouse passes away before or during retirement.

When Should You Buy a Spouse Term Insurance Plan?

Purchasing a spouse term insurance plan is particularly well-suited for small families where both partners are employed and have financial obligations to fulfil.

Term insurance policy for husband and wife offers protection against the death or disability of either of the income-earning partners, helping to alleviate the family's financial burden with the assistance of the insurance payout. Young parents with outstanding loans should also consider obtaining a spouse term life insurance policy to safeguard their children against unforeseen events.

It is to be noted that the death benefit amount provided under a couple term insurance plan is determined by evaluating various factors such as the primary policyholder's age, annual income, health status, and lifestyle habits.

How Does a Spouse Term Insurance Plan Work?

A term insurance with spouse cover covers two people under a single plan, usually spouses. It works slightly differently from an individual term policy because both lives are insured together.
Here’s how it typically works —

• Primary and Secondary Insured: In most joint plans, one partner is the Primary Insured and the other is the Secondary Insured.
• First Death Basis: The policy generally works on a first death basis. This means that if either of the insured persons passes away during the policy term, the insurance company pays out the agreed sum assured to the surviving spouse and the other nominees.
• Continuation of Policy: After the first death claim, some joint term policies continue to provide coverage for the surviving partner. In such cases, future premiums may even be waived off, depending on the insurer’s terms.
• Final Payout: When the surviving insured partner also passes away, the remaining sum assured is paid out to the beneficiaries (children or other nominees). After this payout, the policy ends.
• Simultaneous Deaths: In the rare and unfortunate case where both insured individuals pass away together (for example, in an accident), the insurer pays the full benefit directly to the legal heirs or nominees.

Best Term Plan With Spouse Cover in the UAE

Here are some of the most popular options available —

👉 You can easily compare these plans and buy the best one at Policybazaarinsurance.ae

Advantages of Term Insurance with Spouse Cover

Joint Term Insurance is often seen as a practical solution for couples who want life cover under a single plan. Here are the major advantages —

1. Cost-Effective Premiums

With one policy covering both partners, the overall cost is usually lower than buying two separate term plans. This makes joint policies budget-friendly while still offering strong financial protection.

2. Flexible Payout Structures

Many insurers let you choose how the death benefit is paid. Options include lump sum payout on the first death, shared payouts for both insured individuals, or even a mix of lump sum + regular income. This flexibility ensures the plan fits your family’s financial needs.

3. Rider Benefits

You can enhance protection by adding riders like accidental death cover, critical illness rider, or terminal illness benefit. These ensure wider coverage against uncertainties.

4. Simple Policy Management

Instead of tracking two different policies, a single plan means fewer premium due dates, easier documentation, and less hassle for the couple.

Disadvantages of Joint Term Insurance

While convenient, joint policies are not perfect. Here are the key drawbacks to consider —

1. Limited Death Benefit

Most joint term insurance plans work on a first death basis. This means once the first payout is made, the policy may terminate. In certain cases, the surviving spouse might have to buy a fresh policy, often at a higher premium due to age or health changes.

2. Conversion Challenges

If the joint plan ends after the first claim, converting it into an individual term plan is not possible.

Payout Options Under Joint Life Term Insurance

One of the biggest strengths of spouse cover in term insurance policies is their payout flexibility. Common structures include —

• First Death Payout: The full sum assured is paid to the surviving spouse, and the policy ends.
• Continued Coverage After First Death: The surviving spouse remains covered for the rest of the term. In case permanent total or partial disability, future premiums are waived.

Joint Term Insurance vs Two Individual Term Plans

Things to Keep in Mind Before Buying Spouse Term Insurance Plan

Take note of the following terms and conditions before opting for the couple term insurance plan –

• Terms and Conditions - Before buying couple term insurance, it is essential to note that the plan will follow the same terms and conditions for both partners. If either of the partners wants to add or remove any benefit or feature, they can go for individual plans to fulfil their specific requirements.
• Single Death Benefit - Another notable aspect of a spouse term insurance plan is that it offers a single death benefit. After availing of the single death benefit, the policy will lapse and no further benefits would be provided. If the surviving spouse wants life coverage, they must buy a separate life insurance coverage again.
• Undivided Premium Payment - If a couple decides to get divorced, one of the partners can pay the premium to continue the advantages of the policy. This is because couple term insurance premiums cannot be divided.
• Determination of Sum Assured - The sum assured can be evaluated by examining the primary policyholder's factors, like income, age, lifestyle, and medical conditions. 

Wrapping Up

Spouse term insurance plans or term insurance for husband and wife plans offer vital financial protection for married couples, ensuring the surviving spouse and dependents remain financially secure in the event of an untimely demise.

These plans offer joint coverage for partners, customisable coverage, and rider benefits and are generally cost-effective and easy to comprehend. Couple term insurance plans are ideal for couples with financial obligations, outstanding loans, or dependent children.

Policybazaarinsurance.ae makes it easier to compare multiple joint life plans, check riders, and buy a policy that truly fits your family’s needs

FAQs for Term Insurance for Couples