Term Insurance Plans For Couples

Types of Term Insurance Policies for Couples

1. Single life term insurance policy
2. Joint life term insurance policy

Separate Versus Joint Term Insurance Policies

There are several differences between separate and joint term insurance policies as listed below:

1. Terms and conditions: If a couple takes separate term insurance policies, the cost and terms and conditions of the policies can be chosen by each according to his or her specific requirements.
2. First death: Many joint life plans entail pay out upon the first death or first-claim basis. However, some joint plans entail payment of sum assured upon demise of each insured partner.
3. Single payout: In a joint policy, if a couple dies in an accident, the nominees will receive only one death-payment. In an individual policy, however, the nominees will receive two separate payouts.
4. Divorce/separation: In case a couple chooses to divorce, a joint insurance policy cannot be divided in that if one partner does not pay up (premium), the policy will cease. Experts, therefore, suggest that a couple should have separate policies, just in case.
5. Affordability: A joint term insurance policy, more often than not, is cheaper than two separate life insurance policies for a couple.
6. Convenience: Many couples opt for term life insurance policies owing to the ease of documentation in terms of coverage for both partners at one go.

Examples of Term Insurance Policies for Couples

• Bajaj Allianz iSecure Insurance Plan
• HDFC Term Assurance Plan
• Bajaj Allianz iSecure More Insurance Plan
  

The important features of Bajaj Allianz iSecure Insurance Plan are as follows:

1. A spouse can avail of the death benefit in monthly installments.
2. If your spouse is not included at the inception of the policy, he or she can be included at a later date
3. The minimum sum assured is Rs.2,50,000 while there is no limit to the maximum.
4. The policy term may range from 10 to 25 years
5. Premium instalments are listed in the table below:

1. HDFC Term Assurance Plan

The important features of HDFC Term Assurance Plan are as follows:

1. Offers rebate on higher sum assured in addition to riders
2. Policy term can range from 10 to 30 years
3. The minimum sum assured is Rs.80000 while there is no limit to the maximum. The minimum premium is Rs.2000.
4. Tax rebate under Section 80D of the Income Tax Act, 1961 may be applicable on premiums accelerated sum assured under this policy.