Spouse Term Insurance in UAE: A Complete Guide for Couples

This type of policy covers both partners under a single plan. This way, even if one spouse passes away unexpectedly, the surviving partner and their dependents are financially protected. It is one of the most practical ways to show care and safeguard your family’s future.

What is Spouse Term Insurance?

A spouse term insurance plan is a life insurance policy that covers both husband and wife under one umbrella. It works like a regular term plan but provides protection for two lives instead of one.

• You pay premiums regularly (monthly, annually, or as per the plan)
• If either spouse passes away during the policy term, the insurer pays the sum assured to the surviving spouse or beneficiaries
• Some plans even continue coverage for the surviving spouse or waive future premiums, reducing financial burden
• Unlike individual term plans, joint policies usually don’t offer a maturity benefit at the end of the term

A joint term insurance plan is not limited to married couples. Any two people who want mutual protection, such as parents, children, or business partners, can also go for this plan.

How Does Term Insurance for Spouse in UAE Work?

Understanding how this policy works helps couples plan their finances efficiently. Here’s a detailed explanation —

• Coverage of Both Partners: The policy provides financial protection for both spouses, typically with the sum assured for the secondary insured set at 50% of the primary insured’s coverage.
• Payout on First Death: Most joint term plans work on a first death basis. This means the payout is given to the surviving spouse or nominee when either partner passes away.
• Continuation After First Death: Some policies continue to cover the surviving partner. In fact, they may also waive future premiums to reduce their financial burden.
• Beneficiary Protection: If both partners pass away simultaneously, the payout is made to legal heirs or designated beneficiaries.
• Flexibility in Currency and Payments: Premiums and payouts can often be in AED or USD. Furthermore, policies allow monthly, annual, or one-time payments.

By covering both lives under one plan, couples can simplify policy management, reduce costs, and ensure financial security for their family.

Types of Joint Term Insurance Plans Dubai

When it comes to financial planning for couples, joint life insurance plans are a smart and efficient choice. Instead of maintaining two separate life plans, couples can combine protection under one policy. 

Joint Term Plan

A joint term life insurance plan works much like a regular term insurance policy, but it covers both partners under one umbrella. You and your spouse pay a fixed premium for a specific duration. During this term, if one of you passes away, the insurer pays the sum assured to the surviving partner. In most cases, the policy ends after this payout.

Some modern joint term plans, however, go a step further. They allow the surviving spouse to continue the coverage for the rest of the policy term, sometimes with future premium waivers. This means financial protection doesn’t end abruptly after the first claim. It continues and provides peace of mind for the surviving partner.

Joint Endowment Plan

In this plan, you and your spouse stay covered for a specific period. At the end of this tenure, the insurer pays out a lump-sum amount (known as the endowment benefit). Even if one partner passes away during the policy term, the other spouse remains eligible for the maturity payout at the end of the period. 

Additionally, most joint endowment plans don’t require future premium payments after the first death, easing the financial burden on the surviving partner.

All these aspects make the plan suitable for couples looking for long-term savings and guaranteed maturity benefits, not just life cover.

Benefits of Joint Term Insurance Plan in UAE

Choosing a spouse term insurance plan comes with several advantages —

1. Financial Security for the Family: Ensures the spouse left behind can pay for bills, loans, and medical costs without stress
2. Income Replacement: The insurance money can replace lost income so the family can continue their daily life smoothly
3. Protection for Non-Earning Spouses: Even if one spouse doesn’t earn money, their role at home is valuable — insurance helps protect the family if something happens to them
4. Support for Children: Ensures school fees, college expenses, and daily living costs are met if one parent passes away
5. Cost-Effective Premiums: One joint policy is usually cheaper than buying two separate term plans
6. Flexible Plans and Riders: Coverage, term, and add-ons can be tailored
   Popular riders include —
   • Accidental death benefit
   • Critical illness cover
   • Permanent disability benefit
   • Waiver of premium
7. Simple Policy Management: One policy means one renewal date, one premium, and less paperwork
8. Peace of Mind: Knowing your spouse and family are protected gives you confidence for planning the future

Who Should Buy a Spouse Term Insurance Cover?

A joint term insurance plan is usually the best for —

• Married couples who want to protect each other’s financial future
• Families with children, making sure their education and daily needs are safe
• Couples with loans or debts, like mortgages or car loans
• Partners earning different incomes, so the surviving spouse can maintain their lifestyle
• Couples planning for retirement security for the surviving spouse

Even non-married partners, parents with children, or business partners can choose a joint term plan to safeguard financial interests.

Best Life Insurance for Couples in UAE

Popular life insurance plans for couples in Dubai and across the UAE include —

These plans offer high coverage at affordable premiums, with options to add riders or customise payouts. Platforms like Policybazaar.ae make comparing and buying policies easy.

Payout Options Under Joint Term Insurance

A major advantage of joint term policies is their flexible payout structure. Here are the major options —

1. First Death Payout: The full sum assured is paid to the surviving spouse. After that, the policy terminates.
2. Continued Coverage After First Death: The surviving partner continues to enjoy life cover for the rest of the policy term, often without having to pay future premiums.
3. Regular Income Benefit: Some plans offer payouts in the form of monthly income. This ensures continued financial support for the surviving spouse or dependents.

Joint Term Plan vs Individual Term Plan

Things to Keep in Mind Before Buying a Spouse Term Plan

• Shared Terms and Conditions: Both partners must agree to the same features, benefits, and coverage terms. If one wants to customise benefits, separate plans may be better.
• Single Death Benefit: Most joint policies offer a single death benefit. After the payout, the policy ends. In such a case, the surviving spouse must purchase a new policy for continued coverage.
• Premium Payment Responsibility: If the couple separates or divorces, one partner can continue paying premiums to maintain the policy. However, it cannot be split.
• Determining the Sum Assured: The total insurance amount depends on things like the main policyholder’s age, health, income, and lifestyle. Pick an amount that really helps your family if needed.

Wrapping Up

A spouse or joint term insurance plan isn’t just money — it’s a promise to keep your partner and family safe from life’s unexpected events. These plans are affordable, convenient, and designed to ensure that your loved ones never face financial hardship, even in the most difficult times.

To find the best spouse term insurance plan in UAE, compare multiple policies, riders, and sum assured options at Policybazaar.ae today!

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