What is joint life endowment policy

Joint Life Endowment Plan This plan works just like a basic endowment policy, with the exemption that the endowment policy will pay the couple when the plan has expired. Even in the case of the death of one policyholder, the amount is paid to the surviving policyholder. These plans also provide maturity benefits.

What is the meaning of joint life policy?

What is a Joint Life Term Insurance policy? The Joint life term insurance policy gives coverage to two people. The premium is paid by both the insured pears for the fixed period, and the pay-out is on a first death basis. In case one of the policyholders dies, the sum assured is paid to the other policyholder.

Why do you need a joint life policy?

The purpose of the joint life policy is to reduce the financial burden on the firm at the time of payment of a large sum to the legal representative of the deceased partner. The insurer receives the payout when after the death of his insure partner.

What is the difference between endowment and life insurance?

The major difference between life and endowment is that they have two different end goals. Life insurance covers you mainly for death, terminal illness or disability while endowment is more of a savings plan with a small life insurance component attached. The time period for these policies are different as well.

What type of life policy covers two people and pays?

Joint Life Insurance provides coverage for two or more persons with the death benefit payable at the first death. Premiums are significantly higher than for policies that insure one person, since the probability of having to pay a death claim is higher.