Spouse Term Insurance: Term Insurance Plans for Husband and Wife

 

If one of the partners in a marriage is a non-working spouse, it makes eminent sense for the couple to go in for a Spouse Term Insurance plan, which takes care of the family in the event of the death of one of the partners. As an added protection, the children stand to get the death benefit if both parents covered by the plan were to pass away together.

In today's world, life insurance has become a necessity rather than a choice for every family. With economic fluctuations, unforeseen health issues and layoffs at the workplace becoming common, Spouse Term Insurance is a good idea to safeguard your family against all odds. 

What is Spouse Term Insurance? 

Spouse Term Insurance is an insurance plan which provides both spouses (the husband and wife) protection under a single policy. When one of the two policyholders dies, a spouse term insurance plan pays out, and in some situations, it also provides the family members with a regular income. 

Key Features of Spouse Term Insurance Plans

A Spouse Term Insurance plan is a good policy which provides either of the spouses its benefits in case of the death of any one of them. Term insurance gives you the coverage for critical illnesses, permanent disability, accidental death, and dismemberment. However, in case both partners die, then the child gets the sum insured in the plan.

 Apart from support in emergency situations, a Spouse Term Insurance plan also helps in getting the tax benefits under the Income tax Act 1961*. A Spouse Term Insurance is also affordable as compared to individual term plans as one has to pay relatively lesser premium. So buying a spouse term insurance plan is comparably less expensive than buying two separate term insurance policies.

Benefits of Spouse Term Insurance Plans 

Spouse Term Insurance has multiple benefits to offer, like tax saving benefits, discounts on spousal premium payments, long-term policy tenure. Few other advantages are -

• Easy to handle -

  Having spouse term insurance coverage makes it simpler to handle premium payments, policy benefits, and claim settlements under one policy as opposed to two different plans.

• Tax exemption and Premium waived off after death -

  After the demise of any one of the spouses, the remaining premium payments are waived off in this policy. Also, the money received after the death of either partner is tax-exempt under Section 10 (10D) of the Income Tax Act*.

When Should You Buy a Spouse Term Insurance Plan? 

In case both parents are working and have outstanding debts, they should choose a Spouse Term Life insurance policy to ensure that their family is safeguarded from any unforeseen events.

Also, since it might be difficult for non-earning members of a family to opt for a term plan, it is a good idea for couples, one of whom is not earning, to go in for a Spouse Term Insurance Plan and ensure better coverage for the family.

How Does Spouse Term Insurance Plan Work? 

Under Spouse Term Insurance, if the primary policyholder dies, the surviving spouse will receive the sum assured as a death benefit and thereafter, no future premiums are required to be paid. In case of death of both partners, their child will receive the sum assured amount as a lump sum or regular monthly payout.

Things To Consider While Selecting A Spouse Term Insurance Plan

In the event of a death, the policy's death benefit will be paid to the surviving spouse, and after that, the policy would expire. Since the policy is expired, life coverage of spouses will not be available and will need to be bought separately. It is important to note that both the partners will have the same terms and conditions under Spouse Term Insurance. 

Related Articles

• "Non-working" Spouse - Term Insurance Cover
• Term Insurance Plans for Single Women
• Term Insurance for Millennials: Planning for a Secure Future
• The Importance of Term Insurance for Working Women
• Your Family Needs You, You Need Insurance

ARN - ED/05/23/2251