- Cover Your Non-working Spouse
- Why Opt Spouse Term Insurance?
- Benefits of Spouse Term Insurance
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Updated on Mar 05, 2025 6 min read
What is Spouse Term Insurance?
As the name suggests, spouse term life insurance is a life insurance product that secures both household members under one plan. These comprehensive protection policies offer extra perks to the insured and his wife. In this way, a joint term insurance plan provides financial protection for their spouse in case of their unexpected death.
In India, over 55% of marriages have a husband who is the primary or sole breadwinner of the family. In today’s modern society, about 16% of women become working professionals to reduce the burden on their spouses and family members. So it’s essential for couples, earning household members to buy a spouse term insurance. It provides financial security to the surviving spouse and gives peace of mind to both spouses, knowing that they have taken steps to secure their family’s financial future.
How Does Spouse Term Insurance Plan Work?
Term insurance with spouse cover safeguards two individuals (husband and wife) under a single plan. In case of the death of any of the policyholders, the death benefits are paid to the surviving partner to fulfill their financial goals and the life coverage will continue. The surviving spouse does not have to pay any premiums to continue their policy.
In case of the uncertain demise of both partners, the death benefits are paid to the nominee of the policy and the policy will lapse with effect.
When Should You Buy a Spouse Term Insurance Plan?
A spouse term insurance plan is undoubtedly a perfect option for the family where both spouses work and contribute to the household equally.
As we know, with a husband and wife term insurance plan, the policyholder can secure the life of their family members, support them financially in his absence, or disability of either earning member. If you have kids or other dependents, like parents who rely on your spouse’s income, a term insurance plan can provide financial protection in uncertain circumstances.
However, it’s also worth considering buying a spouse insurance plan in case your spouse has any debts, including a home, personal, or car loan, that you would be accountable for paying the offer in the event of their death.
Features of Spouse Term Insurance Plans
Here are some key features of spouse term insurance plans:
Easy to manage
Managing a single policy is much easier than managing two individual term life insurance policies. A spouse insurance plan makes it easier to manage in terms of premiums, benefits, and claim settlement.Flexible policy tenure
Term insurance for husband and wife provides you an option to choose the policy tenure that best suits both of your requirements.Choice of premium payment mode
Spouse insurance provides you with an option to choose your premium payment mode. You have multiple premium payment modes available including monthly, quarterly, half-yearly, and yearly.Choose your preferred sum assured
You can choose the sum assured of your choice with your spouse term insurance policy. The sum assured depends on both of your financial goals.
Benefits of Buying A Spouse Term Insurance
A spouse term insurance offers various benefits. Let’s understand these benefits in detail.
Cost-effective
Term plan is one of the affordable forms of life insurance. However, the premiums paid separately for two individual term plans are significantly higher as compared to the premiums payable on a joint term plan. Thus, as a couple, buying a term insurance with spouse cover will be more economical.Premium Waiver Upon Death
Having spouse term insurance allows couples to avail of a waiver of future premium benefits. It means that if the primary policyholder dies during the policy term, the surviving spouse will receive the whole sum assured as a death benefit, & he/she wouldn’t have to pay future premiums to maintain the life cover.Financially Secure the Future of Children
In an unfortunate event where both parents succumb to death during the policy term, the child will receive the sum assured as a lump sum or regular monthly income. This will ensure that your child can lead a financially independent life even in your absence.Additional Riders
To offer comprehensive coverage, spouse term insurance comes with advanced benefits such as an in-built accidental death benefit and an in-built terminal illness benefit.Avail Tax Benefits
Term insurance in India allows the policyholder to avail of tax benefits under the Income Tax Act, of 1961. Under the term insurance for husband and wife, you can avail of tax benefits under Section 80C and 10(10D) of the Income Tax Act, 1961
Pros of Buying A Spouse Term Life Insurance
It is quite beneficial to purchase a spouse term insurance to secure the life of their family’s financial future. Let’s look at the benefits of buying term life insurance.
The best term insurance for couple provides financial security for the surviving spouse and dependent in the event of the uncertain demise of the policyholder.
Spouse term insurance policies are more affordable than other life insurance products, making them an ideal option for newly married couples.
With the flexibility of selecting a sum assured amount, they can choose the sufficient funds they need based on their financial situation and future needs.
Cons of Buying A Spouse Term Insurance
As everything has its pros and cons, so is the spouse term insurance. Here are some of the cons of buying a spouse term insurance.
It only provides coverage for a specific term, typically 10 to 30 years, and no maturity benefits if the insured spouse outlives the policy.
Unlike other life insurance products, spouse term insurance policies do not accumulate cash value over time.
If any of you suffers from a pre-existing health condition, the premiums for the spouse insurance plan may be higher and vary from insurer to insurer.
Things To Keep In Mind Before Buying Spouse Term Insurance
You have to keep certain things in mind before buying a spouse term insurance plan. Let’s understand these factors in detail so that you can make an ideal decision.
Same Terms & Conditions
Under a spouse term insurance, the same terms and conditions are applicable for both partners. Therefore, if either of the partners wants to add or remove any feature, he/she has to purchase an individual plan as per their requirements.Single Death Benefit
A spouse term insurance generally offers only a single death benefit, and the policy expires after that. This means that if the surviving spouse wants to get any sort of life coverage, he/she will have to buy a new term life insurance policy. Moreover, buying a new life policy at a later stage may be costlier due to age and health factorsPremium Payment (In case of divorce)
In case a couple under the spouse term insurance decides to get divorced, one of the partners will have to take the burden to continue paying premiums, or the policy will lapse. This happens because a spouse term insurance cannot be divided.Determination of Sum Assured
Sum assured is determined by examining factors like age, lifestyle, medical condition & income of the primary policyholder. Even if the factors vary for the second policyholder, the sum assured will depend on the profile of the primary policyholder only.
Need of Term Insurance for a Non-Working Spouse
Firstly, let’s clear out the doubts of those who don’t know about a nonworking spouse; the nonworking spouse takes care of the household, cooking, cleanliness, and child and aging parents care.
In India, term insurance for housewife will be helpful as it makes sure a term insurance plan protects the family from a financial crisis in case of any unfortunate event. Even though they do not hold any income source, it might be unimaginable to account for the financial implications in case of their absence.
Conclusion
Buying any sort of insurance is your personal choice. However, in today’s time when lifestyle costs are on the continuous rise, it is always recommended to be prepared in advance. Securing your and your partner’s future with a spouse term plan can be one of the best gifts you can give to your better half.
Evaluate your requirements, your lifestyle costs, and your child’s future, and then make a wise decision.
If you are still confused about which spouse term plan is best, you can contact us at PolicyX.com or call us at 1800-420-0269.
FAQs: Spouse Term Insurance
1. What is a spouse term plan?
A spouse term insurance policy cover is an insurance policy that covers both spouses under a single policy. Generally, spouse term insurance is less costly as compared to individual term insurance policies.
2. Is it good to take spouse term life insurance?
Yes, it is good to take spouse insurance as your premiums are comparatively economical.
3. What are the pros of buying a spouse term insurance?
There are various pros of buying a spouse term insurance including affordable premiums, premium waiver benefits, financial security, and much more.
4. Are spouse term insurance and joint life insurance the same?
Yes, spouse-term insurance and joint life insurance are the same thing.
5. What is the spouse cover in term insurance?
A spouse cover in term insurance provides you an option to add your spouse under your term insurance policy. It’s an economical option as compared to buying two separate term plans.
6. Can I add my spouse to my term life insurance policy?
Certain term life insurance policies provide an option to add your spouse under the same plan.
7. What is a spouse term rider?
A spouse term insurance provides an option to opt for additional riders to enhance the coverage of your plan. These riders are called spouse term riders.
8. What is the age limit for the spouse term rider?
The maximum age limit for the spouse term rider is 65 years.
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Written By: Himanshu Kumar
Himanshu is a seasoned content writer specializing in keeping readers engaged with the insurance industry, term and life insurance developments, etc. With an experience of 2 years in insurance and HR tech, Himanshu simplifies the insurance information and it is completely visible in his content pieces. He believes in making the content understandable to any common man.
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