What are the types of Joint Life Term Insurance ?

Joint term insurance plan is of two types- a joint term plan and joint endowment plan.

• Joint term insurance: A joint term insurance has similar qualities to a standard life term insurance policy, but it protects two persons rather than only one as with the latter. For the fixed duration of the insurance, only one premium is due from both policyholders. The surviving policyholder is entitled to the death benefit if one of the policyholders passes away within this time. The joint life policy coverage for the surviving policyholder expires at the death of one insured partner, and additional coverage must be purchased under a new plan.

• Joint endowment plan: The plan for joint endowment offers both investing and insurance benefits. It is valid for a specified amount of time, usually until retirement. The insurance company will give you a specific sum known as the "endowment" after the policy expires. A shared endowment plan operates similarly, with the exception that it pays the insured couple once the insurance expires. The surviving policyholder receives the sum even if one of the policyholders passes away. The maturity benefit is also available to endowment plans. However, after the passing of either policyholder, premium payments cease.