The Concept of “Joint Term Insurance” for Business Partners

What is Joint Term Insurance?

As the name may suggest, a joint term insurance is a policy that covers more than one individual. For instance, a married couple or two business partners may purchase joint term insurance where both are covered under a single term insurance.

Simply put, if two people have an insurable interest in the other’s life or are financially dependent on each other, they can opt for a joint term insurance. This stands true not just for legally married spouses but also for parents and children, business partners, etc.

As in the case of Rishi and Kritika, they chose to purchase a joint term plan that covers both their lives. In a joint term insurance, both partners are covered, and the death benefit is provided if either one of them passes away. Since the lives of both spouses are precious and the loss of either spouse can cause financial stress, people may purchase a joint term plan.

Features & Benefits of Joint Term Insurance

As discussed above, a joint insurance pays out if any one of the life assured members passes away. Such a term plan has several other benefits as well. Key features and benefits of a joint term plan are discussed below:

A Cost-effective Policy

Joint term insurance can be quite affordable and cost-effective compared to regular term plans. That's because dual lives are covered under a single policy. You don't have to pay premiums for two different policies and follow their premium payment timelines. Rather, you can get all the formalities done under a single plan for both partners.

Dual Lives Covered

A joint term policy covers dual life. So, business partners like Rishi and Kritika can purchase a joint term plan. Since both lives are covered, the death benefit is provided for the first person to pass away during the policy tenure.

A Fixed Tenure Policy

The tenure of the joint term insurance is fixed. You may purchase a policy according to your business needs and future plans. This also means you only pay the premium for a limited tenure, which further makes the policy affordable.

Quick Claim Settlement

The claim settlement process for joint term plans is also quick and easy. You may purchase the policy or raise claims online from the comfort of your home or office. At Jio Insurance Broking, we are there to assist you. Get your joint term insurance policy today!

Why Should Business Partners Choose Joint Term Insurance?

One of the major concerns for any business is its finances. As we read about Rishi and Kritika, both business partners played an important role in managing business finances. So, the unfortunate demise of either can impact business in many ways, and finances could be the most affected department.

Although the future is not in our control, we can definitely prepare for the unfortunate incidents like death that may occur. Some of the reasons why business partners must purchase joint term insurance are:

Financial Aid

A joint term insurance works like a usual term plan, where the beneficiary receives a death benefit if the life assured dies during the tenure. In the case of business partners, joint term insurance can be a huge financial help. The death benefit may not cover the loss, but it can provide financial relief that may otherwise take a toll on the business.

Relief for the Family

A joint term insurance policy can also bring financial relief to the family of the deceased. Along with continuity of business, the death benefit can be utilised to compensate the family of the deceased and help them financially.

Mental Peace

All you can do about unforeseen situations is prepare for them in advance. It brings you peace of mind. Having joint term insurance will give you peace of mind that even if things don't go as planned, you will have a backup!

Did you know about keyman insurance? It is a type of life insurance purchased by a company for its key employees, such as the CEO, founder, and other senior executives. The premium is paid by the company, and the company itself is the beneficiary.

Over To You

Joint term insurance is one of the affordable life insurance plans. Under a single policy, dual lives are covered. You no longer have to purchase separate plans for your business partner or spouse. Along with this, the policy is also simple and easy to understand and has a fixed tenure. So, you only have to pay for a limited tenure, as per business plans.

If you are also planning to secure your and your partner’s financial future, get joint term insurance today. For a detailed comparison, easy purchase, and guidance, connect with us at Jio Insurance Broking. We make comparisons and purchases easier than ever before.