Do Stay at Home Parents Need a Joint Life Policy? Find Out Here

Do Stay at Home Parents Need a Joint Life Policy? Find Out Here

It is often believed that parents who stay at home do not have to necessarily invest in a life insurance policy as they are not earning and do not have any contribution to the financial aspect of the home. Well, it is a myth. It is important for parents who stay at home to invest in a joint life policy in today’s time and age, where the rising cost of inflation rates has made it difficult to manage our daily expenses and save a lump sum amount for the future as well. Investing in joint life policy provides the policyholder and his family with comprehensive financial protection in these uncertain and difficult times.

In this article, we will have a closer look at what a joint life policy is and why should stay at home parents invest in this policy.

What is Joint Life Policy?

As the name suggests, a joint life policy provides financial security to husband and wife under one life policy. A joint life policy provides financial security to the family in case of an untimely demise of one of the parents as well. This will ensure that the family of the policyholder can seamlessly continue with their lives, even if one of the parents is not around to provide a financial safety net.

Why Should Stay at Home Parents Invest in a Joint Life Policy?

1. Financial Security of Your Loved Ones

A joint life policy provides financial security to the policyholder’s family. In case of an untimely demise of the policyholder, his family might fall into the clutches of financial constraints. A joint life policy will ensure that the family is financially secure and does not have to face any financial hassles, even if one of the policyholders is not there to provide a financial safety net.

2. Tax Benefits

The premiums paid by the policyholder for a joint life policy are eligible for tax deduction benefits. The policyholder can claim upto Rs. 1.5 lakhs of tax benefits in one financial year under Section 80C of the Income Tax Act, 1961. The lump-sum death benefits received by the policyholder’s family are also eligible for tax deduction benefits under Section 10(10D) of the Income Tax Act, 1961.

3. Premiums are Affordable

One of the benefits of investing in a joint life policy is affordable premiums. A joint life policy offers cheaper and affordable premiums compared to other life insurance policies.

4. Lump-Sum Death Benefits

In case of an unfortunate and untimely demise of one of the parents or the policyholder, the joint life policy will provide the policyholder’s family with a lump-sum amount of death benefits. This will ensure that the policyholder’s family does not face any financial constraints and can achieve their goals.

5. Death Benefit Payout Options

A Joint life policy allows the policyholder to choose from numerous death benefit payout options according to his family’s financial requirements. The policyholder can choose from the following death benefit payout options –

  • Monthly death benefit payout option
  • Lump-sum death benefit payout option

Bottom Line

You now know what a joint life policy is and why should stay at home parents consider investing in this policy. A joint life policy will ensure that even if one of the parents faces an untimely demise, the spouse and children are financially secure and are able to continue with their lives without any financial constraints. So, if you are planning to invest in a joint life policy, you have come to the right place. Bharti AXA is a top-rated life insurance providing company in India.

For more information on a joint life policy, get in touch with us today.

Disclaimer :

*Tax benefits are as per the Income Tax Act, 1961, and are subject to any amendments made thereto from time to time’

The article is meant to be general and informative in nature and should not be construed as solicitation material. Please read the related product brochures for exclusions, terms and conditions, warranties, etc. carefully before concluding a sale.
Make responsible financial decisions. Consult with your financial advisor before making any decisions on insurance purchase.

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