Why Purchase Joint Life Insurance?
If you are eligible to enjoy the benefits offered by these plans then a joint life cover can ensure that you and your partner get financial aid from the selected insurer when either you or your partner passes away. It should be noted that the compensation amount for join insurance plans are usually the same for both partners and if the policy holder wants to set a different amount for each partner then he will have to contact the selected insurer since this is generally not possible. In the case of joint insurance a lump sum payment as decided by the terms of the policy will be given to the beneficiaries of the partner when the first partner passes away.
If the second partner passes away as well, then the lump sum payment as decided by the terms of the policy will be given to the beneficiaries at this time as well. It should be noted that many of the cheaper policies offer a compensation payment only for the first death, hence if you are opting for a cheaper policy with restrictive terms then make sure that you are fine with these terms before agreeing to purchase the contract.
Why Purchase Individual Life Insurance?
If you are eligible to purchase individual life covers then you can enjoy various benefits such as peace of mind knowing that the chosen beneficiaries will receive 1 lump sum payment as decided by the terms of the contract when you are no longer around to help your family financially. Since these plans do not have any clauses such as “compensation payment for first death only” you can remain rest assured that when a successful claim is filed by your beneficiaries your family will have enough money to take care of their needs.
Individual life covers may seem more expensive at first however; being able to control various parts of your policy and life can help you out in the long run. Flexible plans not only ensure that buyers are in control of their policy but also ensure that buyers get the benefits that they want when they need them the most.
If you are opting for one of the premium benefits of individual life covers then you may be able to choose between non cancellable contracts, cancellable contracts and other add on benefits. Cancellable contracts may seem cheaper in the long run but such contracts give the insurer the power to increase the premiums of your policy when there is a change to your health status or when there is any other change in your life.
Non-cancellable contracts give you the benefit of continuing with the same premium payment plan and paying the same premium amount even when you develop a health problem that would have otherwise increased your premiums significantly.
Benefits of Joint Life Covers vs. Benefits of Individual Life Covers
Benefits of joint life covers include but are not limited to cheaper covers, additional benefits for a nominal fee or for no additional cost and peace of mind knowing that both the partners are protected by the same cover by the same insurer.
- Benefits of individual life covers include but are not limited to:
- flexible covers that can be adjusted to suit the policy holder
- premium benefits for an additional cost
- peace of mind knowing that you can take a cover of your choice and choose an insured amount of your choice and loyalty benefits if you opt for 2 or more polices from the same insurer.
It should be noted that if you purchase two comprehensive contracts for you and your partner then the payout will be doubled and your beneficiaries will receive double the financial help in their time of need.
Eligibility Criteria for Joint Life Insurance Plans
Joint life covers are only available to a selected group of people such as married couples, registered civil partners and cohabitating couples who have any type of joint financial commitment such as but not included to mortgages and other types of debts. Eligible people can purchase these plans by either choosing an insurer and contacting the insurer directly or choosing the website of an insurance agent and purchasing the policy from the insurance agent’s websites.
Insurance comparison websites are basically insurance agents that offer cheaper policies online along with multiple quotes and comparison services for free.
Eligibility Criteria for Individual Life Insurance Plans
Individual life covers can be purchased by Australian residents or Australian citizens. In order to purchase a term life cover, the buyer may have to meet a few additional criteria such as being financially able to purchase the policy and pay for the premiums or being a minimum of 18 or 21 years old. It should be noted that life covers for children can be purchased by their parents and these plans protect the family against financial problems that may occur due to trauma or death of the policy holder that is the child.
Individual life cover can also be purchased directly through the selected insurer’s website or through the website of a reputed insurance comparison company.
Choosing between a Joint Life Insurance Plan and an Individual Life Insurance Plan
Your budget and your personal as well as financial needs will help you decide if you should purchase a cheaper joint contract that pays one compensation payment on the first death basis or if you should purchase 2 individual and comprehensive contracts, one for you and one for your partner. Remember there are many ways you can save money while purchasing life insurance plans; however compromising on the benefits of life covers is not one of the best ways to save money while investing in your children’s future.
In addition to protecting your children’s future, if your spouse is unemployed or if your partner works from home then you should consider purchasing the best contract you can so that your spouse or partner doesn’t have to worry about money problems when he or she is unable to pay the bills.