Saturday, March 31, 2012

Joint Life Insurance Policy

Joint life insurance policies are similar to endowment policies as they too offer maturity benefits to the policyholders along with all the other benefits by normal Life Insurance policy. Joint life policies are different than normal life insurance as they cover two lives simultaneously, thus offering a unique advantage for a married couple or for partners in a business firm. Under a joint life policy the sum assured is payable on the first death and again on the death of the survivor during the term of the policy. Vested bonuses would also be paid besides the sum assured after the death of the survivor. If one or both the lives survive to the maturity date, the sum assured as well as the vested bonuses are payable on the maturity date. The premiums payable cease on the first death or on the expiry of the selected term, whichever is earlier.

Accident benefits equivalent to the sum assured are available under Joint life insurance policies on the first death. In case both the lives are covered under Double Accident Benefit, the surviving life is covered under Double Accident Benefit until the end of the policy year, in which the first life dies under the cover of the policy.

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