In past days most of the families relied on the income of a single person, and it was important for that person to have sufficient life insurance coverage to protect the rest of the family after his death. However, it is much more common for the couple to work full time, to fulfill their financial needs. So it is important to have insurance for both husband and wife.
To give more facility for such type of people, the insurance companies introduced a joint life insurance policy. A joint life insurance policy is specially designed insurance policy to secure the two individual life under one policy. It is a policy in which the two people can be covered under one insurance policy. Joint life insurance policy provides single cover for the two people with one premium amount.
This type of policy best suits for the couple whose husband and wife both are working, and for the joint business persons. In this policy, when one of the policy holder dies the other holder can receive death benefits.
A joint life insurance policy is usually a whole life or universal life insurance policy, although the term life insurance may also be purchased.
Here are the advantages with joint life insurance policy, they are
- The premium amounts are lower than two individual life insurance policies. So it is cheap when compared to two individual life insurances.
- In case, both pass away, the nominee would get both the lump sum and bonus.
A joint insurance policy is best suited for present day conditions, hence, if you are thinking of opting a life insurance policy, go for joint life insurance policy.