Sudden times of crisis, such as the events of 2020, make you stop and think about the safety and well-being of loved ones as well as the limits of our control over these circumstances. The steps we can take to protect them provide an essential buffer against the financial hardships that come with illness or death and secure their future. Times like these offer an urgent excuse to seek out term life plans or other insurance products to provide for our family's future if we become unable. While there is a vast selection of financial services products out there that can help families prepare for key life stages like retirement and children's education, the trick is identifying the right product with manageable premiums for your family's needs.

In the realm of life insurance, people can opt for a term plan, which is a policy purchased to provide coverage during a fixed period if the individual becomes unable to work because of illness, disability or death. Many insurance companies have also introduced joint term insurance that covers the policyholder as well as another individual such as a spouse or partner. Another option is an endowment, or traditional life insurance plan. This type of plan incorporates an investment aspect that enables policyholders to receive an assured sum after the policy expires. Premiums for these plans tend to be more expensive than term plans due to the assured sum provided at the end of the policy. Determining which type of plan is right for you is dependent on your age, family situation and investment objectives.

If you want to ensure comprehensive cover for your family against disease and disability, there are three reasons that joint term life insurance should be considered.

1) The loss of either spouse could be financially devastating.

Generally, holders of term insurance policies are expected to be earning members of the family; however, the impact of losing the contributions of working and non-working family members can be equally devastating. Non-working family members are often unable to obtain term insurance plans on their own, and with more Indian households consisting of two working partners, more people are opting for a joint term insurance plan. That way, if the unthinkable happens to either spouse, the family is protected.

2) One policy can be better than two.

The nature of joint term insurance ensures that two people will be covered under the same plan. Another key benefit is that premiums are waived, and coverage continues if a policyholder dies while the policy is active. The surviving spouse receives an assured lump sum as well as monthly payments in some plans

It also should go without saying that purchasing two separate policies to cover each person can mean higher total premiums. A more comprehensive joint term life insurance plan also makes it easier to manage the payments, benefits and services associated with it, versus managing two separate policies. Policybazaar.com notes that joint life term plans are a great option for families on a tight budget who want to cover themselves and a spouse for an overall lower premium.

3) Eligibility for tax benefits

A joint term insurance plan can also deliver tax benefits, per prevailing laws, under the Income Tax Act of 1961. Term life insurance plans generally enjoy an EEE tax status, meaning that contributions, returns and the payout are all exempt from taxation. Engage a financial consultant to determine which tax benefits you might be eligible for under your insurance policy.

The best joint term insurance plan pays death benefits for both spouses, as well as regular income to the surviving spouse if income rider is opted in the policy, instead of the policy stopping after the death of one spouse. It may also include options to enhance coverage with riders. Talk to a financial advisor about whether an insurance plan with coverage for working and nonworking spouses is the right option to protect your family in the event of illness, disability or death. This way, both partners can have peace of mind that the family can withstand any sudden changes in the household.