This article delves deep into the realm of holding multiple term insurance policies, highlighting the benefits and answering your pressing queries regarding this facet of financial planning.
Spouse term insurance (term insurance for husband and wife) serves as a vital financial safety net for couples looking to safeguard their family's financial well-being in the event of an untimely demise.
These term insurance plans are designed for husbands and wives, offering comprehensive coverage and ensuring that the surviving spouse and dependents are financially secure in the face of adversity.
In this article, we will cover couple term insurance, discussing its importance, key features, benefits, and factors to consider when choosing a plan. By understanding and investing in a suitable spouse term insurance plan, couples can embark on their life journey with the assurance that their loved ones will be well taken care of, no matter what the future holds.
Spouse term insurance, a type of life insurance policy, is specifically designed for married couples as the name suggests. 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.
After knowing what a couple term insurance plan is, let’s understand the benefits of applying for a spouse term insurance plan –
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 -
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.
A spouse term insurance plan functions on a first-death basis, which means that when one of the two insured individuals passes away within the policy's duration, the other policyholder is given a one-time payment known as a death benefit.
In the unfortunate circumstance where both the insured spouses pass away simultaneously, the nominees or legal heirs receive the combined sum assured as death benefits. Most couple term life insurance plans in the market offer coverage of up to 50% of the sum assured for the spouse upon the primary insured's death.
For instance, let’s assume a couple purchased a couple term insurance plan, with a death benefit sum assured of INR 30 lakhs for the primary policyholder and INR 20 lakhs for the secondary one.
If the primary policyholder passes away, the other person will receive a sum assured of INR 30 lakhs. Conversely, if the secondary policyholder dies, the primary one would be compensated with a sum assured of INR 20 lakhs. If both policyholders pass away, the nominee or legal heir will receive a total of INR 50 lakhs.
The following table lists the best term insurance plans for husband and wife available –
|Life Insurance Provider||Life Insurance Plan Name|
|Bajaj Allianz Life||Bajaj Allianz iSecure Insurance Plan|
|PNB Metlife||MetLife’s Mera Term Plan|
|Aegon Religare||Aegon Religare iSpouse|
|SBI Life||Smart Humsafar|
You can purchase Bajaj Allianz iSecure Insurance Plan both online and offline. The plan does not come with the maturity benefit as it is a pure-term plan. A remarkable feature of the plan is that you can purchase it jointly as a couple term insurance plan or individually.
Some key features of the Bajaj Allianz iSecure Insurance Plan include:
In the context of this plan, when the primary policyholder passes away, the secondary policyholder receives 50% of the sum assured. When the primary policyholder buys the plan, and the secondary policyholder is employed, they are entitled to receive 50% of the sum assured. Conversely, if the secondary policyholder is not employed, they will receive 25% of the sum assured.
Here are some notable features of the plan:
This term insurance plan is designed for both spouses and, like other plans, operates based on the death benefit feature. Upon the death of one partner, the other partner receives a lump sum payment. A distinctive aspect of this plan is that monthly benefits are paid out over five years.
The prominent features of this plan include -
SBI Life Smart Humsafar is a term insurance plan for husband and wife which offers bonuses announced by the insurer.
Take a look at the major features of the plan listed below:
Take note of the following terms and conditions before opting for the couple term insurance plan –
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.
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