Joint or Individual Life Insurance Policy - which one is better?
Life is so valuable that we can't put a price on it. Life Insurance is very much important for each and every person. In Insurance, an approximation of the value of life is insured on various factors. In a policy, the life of the individual or any of individual's near one's life gets benefited in a case of any of death or health issue.
Generally, Life Insurance Policies are designed for an individual based on various criteria's like age, income, health, pre-existing illness and lifestyle. Moreover, there are joint policies too, which covers the whole family or a couple together. In these joint policies, both members get the equal benefit, by which if anything happens to one individual the other remains Financially stable. In some joint policies, one can cover child instead of the spouse.
Type of Joint Life Insurance Policies
'First Death': In this policy, the policy will cover the sum of the death of the first individual, the rest will cease to continue.
'Death of Each Life': In this policy, plans pay on the death of the first individual, later on, the cover will continue with reduced premium.
Currently, Bajaj Allianz iSecure Plan, HDFC term Assurance Plan , LIC Jeevan Sathi Plus and various other term insurance plans are available in the market.
Before picking up any of the plans you should keep in mind the following features.
- Cost Pricing
- Terms and Conditions
- Tax Benefits
- Ease of Use
- Benefits and Maturity
- Divorce and Separation
- Premium Waiver Benefit
Terms and Conditions
Ease of Use
Premium Wavier Benefit
This is only available for Joint Insurance Policies. In this, after the death of any individual, other spouse doesn't need to pay Premium amount. Also, the Spouse get income every month or year based on the chosen policy.
Divorce or Separation
Benefits of Plan Maturity
Life Insurance Plans Differ for both Individual and Joint Life Insurance Policies. Some Provide Payout after the death of one individual, while sum provides benefits after reaching a certain age in the life. The Benefits of the Policies are based on the selection of Policy.
One should also consider terms like additional benefits, sum insured, policy term gross payout, surrender values, the premium amount of plan and claim settlement values before selecting Policy.
Both Joint and Individual Policies have their Prons and Cons, one should deeply look at them before selecting.