A joint term insurance plan offers life insurance for the couple and is similar to that of a single term insurance plan. Unlike a single term policy, where a person is insured for a certain time period, a joint plan allows both persons to be insured for a longer period. Unlike a single term policy, where the premium and death benefit is charged on the basis of age, a joint term insurance plan charges premiums on the basis of the duration of the plan and the amount of coverage provided by the plan. Unlike a single or term policy, where the death benefit of the plan is reduced if the insured dies during the insured period, a joint term insurance plan offers a full death benefit, irrespective of the age of the insured when the policy is purchased. Unlike a term or universal life policy, the premiums paid by the joint term insurance plan are not refundable.
The joint life assurance is usually purchased by the husband and the wife, or by the wife and the husband, or by both the husbands and the wives. But it can also be purchased by any of the members of either sex who are members of the household. There are situations where the insurance of one person may be beneficial to another, in which case a premium waiver is often sought. Such premium waiver is also referred to as the accidental death waiver.
One of the biggest advantages of joint term insurance plan is that there is no requirement for a medical examination for either the husband or the wife, irrespective of their state of health. This means that people who are generally diagnosed with serious ailments are offered a chance to buy a policy without wasting their time and money in taking a medical examination. Under normal circumstances, people with such ailments are usually refused a life assurance policy by insurance service providers because of their inefficiency in taking medical tests. These tests can sometimes be misleading and a wrong medical report can lead to high premiums being paid.
Term assurance plans have two parts: term premiums and deferred payments. Deferred payments mean that the payments are made whilst the beneficiary waits for a lump sum to be received. For instance, the benefit amount in case of the death of one spouse is paid directly to the surviving partner. However, if the surviving partner does not dies before the maturity benefits are fully paid, then both the spouses receive the benefit equally. In case of death of both spouses, the one who has the highest number of years of tenure gets the death benefit first, followed by the second spouse.
Joint term plans have been designed so as to provide financial assistance to couples when one of them dies. They are also useful when one of the partners suffers from terminal disease or endometriosis. The insurance plan helps in dealing with these kinds of situations, since terminal illnesses mean that the person will not be able to make any regular payments on the insurance. In such cases, the insurance company advances money to the person until his or her life expectancy is reached or until the insurance matures. The premiums and benefits are generally variable, and one can choose to pay a fixed sum assured on a monthly basis or a combination of monthly and yearly premiums.
The premiums in these insurance schemes vary from person to person depending on the age, gender, profession, and family history. However, a reasonable premium can be paid within a year by people who do not smoke and do not suffer from pre-existing medical conditions. In addition, life assured plans can be bought by couples who do not own any other insurance policies.
One of the main features of the plan is the ability to adjust the premiums paid towards the benefit based on certain factors such as the number of years the partner lives. This is done in line with the growth of the benefit. In addition, the plan provides additional benefits to long-term care and hospitalization. In addition, joint term insurance plans provide guaranteed cash value benefit levels that make the policies even more attractive for both the individuals and the insurance providers.
A good number of insurance companies offer joint term insurance plans. However, it is important that an individual considers the rates offered by different insurance companies before taking the final decision. The best way to go about this is to get online quotes from the different insurance agencies to compare their premiums and benefits. This can be done at the comfort of your home by using an online quote comparison tool. The quote comparison website will request details from you and after a short enquiry, will provide you with a list of top insurance quotes in the market that will enable you to make the best decision.