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Sowmya Sundar

LIC's Jeevan Sathi offers a single policy for a working couple that not only covers the lives of both the husband and the wife but also gives a lumpsum on maturity.

Eligibility

The policy can be taken only on a married couple and not on lives sharing any other relationship, such as father and daughter. Also it can be taken only if your wife is working in a reputed organisation or has a regular income of her own.

If both the partners survive the term, the sum assured along with bonuses are paid out. If one of the partners dies, the sum assured is paid to the survivor and all future premiums on the policy are waived.The life cover on the surviving partner continues and the policy earns bonuses even after the first claim is honoured. If the survivor lives the term, he/she gets the sum assured and bonuses. If he/she too dies during the policy term, the sum assured is paid to the survivors.

Accident cover

You can append an accident cover to the policy by paying Rs 1 per Rs 1,000 sum assured additionally. If one of the partners dies in an accident, an additional sum equal to the accident sum assured is paid to the surviving partner. Subsequently, premiums on the accident rider are also waived along with that on the main policy. The accident cover for the surviving partner continues.

The cover also has an inbuilt permanent disability benefit. But this disability benefit is available only on one life (on a first claim basis).

For instance, if the wife becomes permanently disabled in an accident, her spouse is paid the accident sum assured in 10 equal instalments. If she dies during the life of the policy, the spouse gets the remaining instalments and an additional sum assured. But once paid, the disability benefit is not available to the other partner.

How are premiums calculated?

Based on the difference in the age between the partners a certain number of years, predetermined by actuarial calculations, is added to the age of the younger partner to determine the average age. The premiums are based on this average age.

Suitability

The policy is suitable for working couples who will get a cheaper policy covering both the lives instead of two independent insurance policies.

(Readers are requested to compare products featured under this column with similar ones offered by other players.)

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