What is the Best Term Insurance for young Married Couples?

“And they lived happily ever after...”

This is how stories are supposed to go for most new marriages. Two people coming together to stay for eternity sounds beautiful and hopelessly romantic until the realities of life come crashing on this dream. Marriage is an agreement two people get into to support and be with each other, irrespective of good and bad times.

From a conventional societal expectation, we are required to get married and the earlier we do it, the better it is (supposedly). Sarcasm apart, there is truth in the earlier statement as there is more stability in the latter years versus doing this later (when we get set in our ways). Apart from the conventional expectations, the economic benefit is much fold in marriage. In the modern middle-class setting, women are equal contributors to the household and this reduces the burden placed on men to be the provider. It elevates the economic status of the individuals since two people earning bring in much more!

As young couples get married, certain steps are taken towards oneness – setting up a joint account to run the expenditures of the home. Investing in setting up a stable home, preparing for unforeseen financial difficulties and other such things. There is a tendency to ignore the most important aspect of securing health and happiness – insurance. While individuals may have their insurance policies, it is set up for themselves and has no benefit for their partner. Hence, young married couples need to look at insurances that benefit them mutually, especially if both are working.

Amongst the available forms of insurance, term insurance is perfectly suited for couples. There are multiple benefits which we will look at below:

• Joint Cover Advantage – This is the topmost benefit of buying a term policy together since you get a single cover for you and your spouse. There is no need for a separate cover. Of course, the premium amount paid is for a single cover which is amazing since that saves excess expenditure on another policy. There is an ease of maintaining a single set of documents, dates versus having multiple policies. Apart from this, some of these policies provide a regular income to the surviving partner for a fixed number of months until they can recover and go on with their lives. Payout – There are multiple payout options where the sum assured can be divided or there can be a single payout. There are options for segregated payouts depending on the demise of the respective policyholder. Many joint life plans come only with the option of a single payout upon the first death. However, some joint plans also provide payment of sum assured to each insured partner in case of death.
  
  
• Cost & Tax benefits – Getting a single joint policy calls for greater affordability as the premium amount is lower than two policies. The coverage is higher for couples at a lower cost versus two single policies for each individual. There are tax exemptions as well for those who are spending upwards of Rs 1.5 Lakh per year (Under section 80c of the Indian Income Tax Act).
• The greatest benefit is the fact that it covers the loss of life. This is so important especially for the fact that if there is a single breadwinner between the couple. Despite thinking that in the modern age that most couples are working, many have opted to be at home and dedicated themselves to handling/managing the various aspects of domestic life. This person may not contribute income directly, however, the effort put in is equivalent to a full-time job. So, it is important to provide financial safety and support for such a person in case of any untoward incident.

There are several Joint Term insurance plans available, but the following are worthy of a mention:

• Bajaj Allianz I secure Plan – This plan carries a term of 10 to 25 years and there is no limit to the maximum sum assured. Under this plan, in case the plan was opted for while you were unmarried, you can add your spouse and make it a joint policy. In case you are already married, then the spouse can be added only at policy inception. You can also opt for death benefit pay-outs in instalments to your spouse.
• PNB MetLife’s Mera term plan – according to this plan, you may opt to cover your spouse under the same policy. However, the cover for a working spouse is capped at 50% of the Sum Assured for the primary policyholder and 25 % for a non-working policyholder. Also, all benefits for the other partner will continue even if the first partner is no more and all future premiums will also be waived.
• Aegon Religare iSpouse is a joint term insurance plan in which both husband and wife are covered under one plan. Death benefits are paid out upon the death of one of the partners and both Terminal Illness benefit and Accidental Death Benefit riders are built into this plan. There are however no maturity benefits available.
• SBI Life Smart Humsafar is a participating plan provided jointly for both husband and wife.

This plan declares bonuses which are paid from time to time to the policyholders. This plan also offers waivers of future premiums in case one of the policyholders expires. Apart from the payment of death benefits in case of the death of one of the policyholders, there is also a maturity benefit which is paid if one or both the policyholders survive beyond the term of the plan.

This is the reason why one must invest in term insurance sensibly. To know more about joint term plan you can visit bimakaro.in or speak to their insurance advisors.