Details of the Joint Life Policy:
There may be two types of cases to the insurer person to choose from, which you have to select the best policy:
The first one is the plan which gives the benefit in case the death of the one person from the husband or the spouse, whichever dies the first. I would give the example of the same. If the Policy is taken in the year 2012 for 30 years, if the husband dies unfortunately in the year 2015 than the sum insured would be given to the spouse and the insurance policy would end there only. This policy is also known as Single payout policy, as the insurance company may have to pay only once in the lifetime.The second one is in case any of the person that unfortunately dies than the insurance policy will give the nominee of the insured person the sum insured and after that also the insurance policy will continue be in force. The surviving person would be covered by life cover and in future if anything happens to that person and if the policy period has not expired than the other person would also get the sum insured.
Now we would see in detail what are the options available to the individuals take the Joint Life Insurance Policy:
The first option available to the individual that he should for single payout where after the death of one person and receiving the sum insured, the policy will expire.The other option is to take the plan which provides benefit also after the death of one person and continues the policy.In the event of death of both the persons together, the nominee will get the full amount and the policy will expire there only.
Advantages of Joint Life Policy:
The main and the basic advantage of buying this policy is that the individual costs of insurance policies need not be taken separately for husband and wife and only one policy needs to be taken.It would be easy to manage one policy rather to manage two policies.There are other benefits also attached to the joint life policy which may be provided by some of the companies such as they would provide the children of the deceased person the education at free of cost or at the lower, i.e. they would provide the reimbursement for the cost incurred which might be very much beneficial.
Disadvantages of Joint Life Policy:
In case of single payout plans the life insurance of any one of the living individual’s life will not be covered and would have to take another plan for the same.If the individual dies after the policy gets matured than there would not be any amount to be paid by the insurance company to the deceased person. The cost incurred by the individual during the policy period will go into waste.The cost of such joint life policy is high in comparison with the individual policies, as they cover the life cover of two people.
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