A spouse term insurance plan, as the name implies, allows you to include your partner/spouse in your term insurance coverage. This way, a single life insurance policy will cover both you and your partner against life’s unforeseen events. Furthermore, a spouse term insurance plan is a custom-made life protection instrument for working couples as well as those where one spouse is a stay-at-home parent.
A spouse term insurance plan’s financial security is most valuable for non-working partners who cannot readily get an online term plan in India on their own. Having spouse term insurance, on the other hand, makes it easier to keep track of premium payments, policy benefits, and claim settlements under one policy rather than two. To assist you in making an informed decision, we examine the numerous features and benefits of best term life insurance in India for spouses.
What is a Spouse Term Insurance Policy?
A spouse term insurance plan, as the name implies, provides life insurance coverage to both partners (husband and wife) under a single policy. Tax benefits, reductions on spousal premium payments, long-term policy tenure, and regular monthly income payout to the surviving spouse are all features and benefits of a spouse term insurance plan.
You can add critical illness, permanent disability, accidental death, and dismemberment riders to a spouse term insurance plan for extra protection.
Spouse Term Insurance Plans: Key Features
The primary policyholder (you) must be an earning member of the household when purchasing a spouse term policy. Most spouse term insurance policies have a maximum sum assured that is either a percentage or a fixed amount of the primary policyholder’s relevant sum assured.
The Advantages of Spouse Term Insurance
In most circumstances, buying a spouse term insurance policy is less expensive than buying two separate term insurance policies (also, it may not be possible to purchase a separate term life cover for a non-working spouse). The availability of a waiver of premium feature is another benefit of a spouse term insurance plan. If your spouse term insurance has a death benefit, the non-working spouse will get a lump sum payment of the death benefit, while the waiver of premium provision will waive any remaining premium payments, allowing the surviving spouse to keep their life coverage. The premiums paid under spousal term insurance plans are likewise tax-deductible under Section 80C of the Income Tax Act 1961, while the money collected upon the death of either partner is tax-free under Section 10 (10D).
When Should You Purchase Term Insurance for Your Spouse?
Purchasing a spouse term insurance plan is suitable for nuclear families with both spouses working and financial obligations to meet. With a spouse term insurance plan, policyholders can protect their families against the death or disability of either earning member while also alleviating financial burdens with the insurance payout. Young parents with outstanding loans can consider purchasing a best term life insurance in India for spouses, to shield their children from potential misfortunes.
The sum assured payable under a spouse term insurance plan is determined using the primary policyholder’s age, annual income, health, and lifestyle. The insurance firm may only request proof of age and highest education for the spouse or secondary policyholder. In the case of a spouse or secondary life assured, there may also be no requirement for a medical examination. When purchasing a spouse term insurance plan, check out online term plan in India to choose the plan that suits you the best.
