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Spouse Term Insurance Plans

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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.

Defining Spouse Term Insurance: Term Insurance for Husband and Wife

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.

Benefits of Spouse Term Insurance Plans

After knowing what a couple term insurance plan is, let’s understand the benefits of applying for a spouse term insurance plan –

  • Providing Financial Security - If one spouse passes away, the death benefit provided by a couple term insurance plan can help the surviving spouse maintain their current lifestyle, pay off debts, or cover any other financial needs that they may have.
  • Coverage for Home Makers - Spouse term insurance can cover the spouse who stays at home and takes care of the household, as it can provide financial security for the family if the stay-at-home spouse passes away.
  • Replacement Of Income - Couple term insurance can replace the deceased spouse's income, ensuring that the surviving spouse has enough money to cover living expenses, childcare, and other daily costs.
  • Customisable Coverage - The plans related to term insurance for husband and wife can be tailored to meet the specific needs of your family, including coverage amount, term length, and additional riders or benefits.
  • Rider Benefits - You can enhance the coverage of your couple term insurance by adding riders or add-ons. Some of the common ones include the following – 
    • Accidental death rider
    • Accidental disability rider
    • Critical illness rider
    • Waiver of premium rider
    • Accelerated death rider
  • With Less Premium, Get Better Coverage - Term insurance is usually more affordable than other types of life insurance policies, making it a cost-effective way to secure financial protection for your spouse.
  • Easy to Comprehend - Term insurance for husband and wife is usually straightforward and easy to understand, making it easy for policyholders to determine the coverage that best suits their requirements.
  • Sponsor Children’s Education - The death benefit can be used to cover the cost of the children's education, ensuring they have access to quality schooling even after the death of a parent.
  • Sense of Security - Knowing that your spouse will be financially protected in the event of your demise can provide both you and your spouse with a sense of security and peace of mind.
  • Managing Policy Becomes Easy - Since the spouse term insurance plans offer combined coverage for both partners under a single policy, it simplifies the management process. You only need to keep track of one policy, premium payment, and renewal date.

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 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.

Best Spouse Term Insurance Plans

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

1. Bajaj Allianz iSecure Insurance Plan

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:

  • You have the option to pay monthly instalments for the spouse term insurance plan.
  • The policy duration can vary between 10 and 25 years.
  • The plan has a minimum sum assured of INR 2.5 lakhs.
  • There is no specified maximum limit for the sum assured.
  • If your spouse was not included during the initial purchase, you have the opportunity to add them after obtaining the plan.

2. PNB MetLife’s Mera Term Plan

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:

  • The maximum coverage for a non-working policyholder is set at INR 2.5 lakhs.
  • The plan provides life-stage benefits, allowing policyholders to adjust coverage based on significant life events.
  • Provides financial security to the family of the policyholder

3. Aegon Religare iSpouse

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 -

  • It is a conventional joint plan that covers both spouses.
  • Maturity benefits are not provided.
  • The plan includes two integrated riders - accidental death benefits and a terminal illness rider.

4. SBI Life Smart Humsafar

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:

  • The plan is a joint-life endowment policy that offers coverage for both spouses.
  • Maturity benefits are paid if primary and secondary policyholders are alive at the end of the policy term.
  • If either of the policyholders dies during the coverage period, a death benefit is paid out.
  • An integrated rider is included, which waives future premiums if one of the policyholders passes away during the policy tenure.

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.

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