Joint Life Policy
What is Joint Life Policy?
Joint life policies are similar to endowment policies in as much as these policies also offer maturity benefits to the policyholders, apart form covering the risks as all life insurance policies.
But these are categorized separately as these cover two lives together thus offering a unique advantage in some cases; notable, for a married couple or for partners in a business firm.
How is it beneficial to me?
Under a joint life policy the sum assured is payable on the first death and again on the death of the survivor during the term of the policy. Vested bonuses would also be paid besides the sum assured after the death of the survivor.
If one or both the lives survive to the maturity date, the sum assured as well as the vested bonuses are payable on the maturity date.
The premiums payable cease on the first death or on the expiry of the selected term, whichever is earlier.
Accident benefits equivalent to the sum assured are available under this plan on the first death. However, if both lives are covered under Double Accident Benefit (DAB), the surviving life is covered under DAB until the end of the policy year, in which the first life dies under the cover of the policy.
These benefits are available with respect to both lives if
- Both lives perish simultaneously owing to an accident. To avoid such an eventuality, nomination is allowed under the policy OR
- Both die within the specified period as a result of the same accident OR
- The second life also dies in the same policy year as result of another accident. To avoid such an eventuality, nomination is allowed under the policy
Who should buy this plan?
Particularly for couples - Joint life policies provide dual-purpose income and risk protection for both belonging to every income group and class of society.
Under a joint life plan though the premium payment stops after the first life's death, bonuses continue to accrue on the basic Sum Assured till Maturity Date or till the death of the second life, if earlier.
A good plan for middle-aged married couples, working couples or professionals offering financial security for both the lives.