Bandhan Life iSpouse Insurance Plan

This is a traditional Joint Life Term Assurance plan covering a married couple which can be bought online.

The plan has dual death benefits where a lump sum is paid immediately on the death of any of the partners and a monthly benefit is also paid for a fixed period of 5 years post death.

There are two inbuilt riders in the plan which is Accidental Death Benefit and Terminal Illness Benefit. Both of these inbuilt riders increase the scope of coverage provided under the plan.

Being a term plan, no maturity benefit is paid if the plan matures.

If either one of the couple dies during the plan tenure, 100% of the Sum Assured is immediately paid to the surviving partner. 1.75% of the Sum Assured is additionally paid monthly for a fixed period of 5 years after which the plan terminates. If the surviving partner dies during the monthly benefits, the benefits would be paid to the legal heir of the couple for the fixed tenure.

If any of the insured partners die due to accident, an additional 50% of the Sum Assured limited to a maximum of Rs.1 crore is paid along with the above-mentioned death benefit.

If either of the partners contracts any terminal illness during the plan tenure, 25% of the Sum Assured would be paid immediately subject to a maximum of Rs.1 crore. All future premiums payable would also be waived. However, when the insured dies after the illness, the death benefit payable would be net of the Terminal Illness Benefit already paid under the plan.

This is a non-participating plan and as such, bonuses are not declared.

Loans are not available under the plan.

Premiums paid under the plan would be exempt from tax under Section 80C up to a limit of Rs.1.5 lakhs. The death benefit or the maturity benefit received would also be tax exempt under Section 10(10D) of the Income Tax Act.

Aegon Life Waiver of Premium on Critical Illness Joint Life Rider is available under the plan for increasing the scope of coverage. This rider covers four major critical illnesses.

A grace period of 30 days is allowed for payment of premium after the due date for annual mode of premium payment. For monthly mode, the grace period allowed is 15 days. The life cover under the policy would continue during the grace period.

A cooling off period or a free look period of 30 days is granted to the policyholder after the policy issuance to review the policy terms and conditions. If found unsatisfactory, the plan can be cancelled within this period and the premium paid would be refunded after deducting the relevant mortality charge, service tax, cess and stamp duty paid.