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Joint-life insurance
Joint life insurance is a life insurance policy that covers an individual and his/her spouse under a single contract. It could be term plans or endowment plans. The premium amount is usually lower in joint life plans compared to the individual plans, though benefits remain the same under both cases.
On death of one of the policyholders, the insurer will settle the claim to the surviving partner. However, whether the surviving partner continues to be covered under the same policy will depend on the insurer. Some companies waive or reduce the premium following the death of one of the spouses, but keep the policy active. Other companies terminate the policy and suggest the surviving partner to take a new one.
For instance, consider Bajaj Allianz’s iSecure, a term insurance. In the case of joint life policy, on death of any of the life assured, the policy will automatically continue for the surviving life, assured with reduced premium. The reduced premium will be based on the age, policy term, premium payment frequency and sum assured of the surviving life assured.
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