- Working of Joint Insurance
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Joint Term Insurance
Are you and your partner planning to buy term insurance plans for yourselves? We understand that buying two separate plans can bring an upheaval to your monthly budget and can be costly. Keeping this in mind, we are here to discuss a joint term insurance policy with you. It is a single plan that you and your spouse can purchase together, pay single premiums, and get the death benefit when something happens to one of you.
What is a joint term insurance plan?
A joint term insurance plan can be bought by two partners together by paying premiums of a single policy. It is a cheaper way to get term insurance for two individuals. If one of the policyholders passes away, the death benefit is given to the surviving partner and the policy terminates.
A joint term policy is not confined to husband and wife. Any two people can purchase the policy such as a parent and a child. The premiums are paid on a regular interval as chosen at the inception of the plan.
The Best Joint Term Insurance Plans in India
Insurance Providers | Best Term Plans | Claim Settlement Ratio (CSR) | Entry Age | Maturity Age | Check Plans |
| ICICI Prudential life insurance | ICICI iProtect Smart - Joint Life | 97.82% | 18 to 65 years | 99 years | |
| PNB MetLife Insurance | PNB MetLife Mera Term Plan Plus | 97.33% | 18 to 65 years | 99 years | |
| Max Life Insurance | max - Smart Secure Plus - Life Cover | 99.34% | 18 to 65 years | 85 years | |
| Edelweiss Tokio | Edelweiss Zindagi Plus | data lab | 18 to 65 years | brochure |
Benefits of a joint term insurance plan
Following are the benefits of a joint term plan.
Cost Saving
It is cheaper to pay the premiums of a single term insurance plan rather than paying for two. Therefore, a joint term plan is a cost effective way to life assure two people at the price of one.
Income Replacement
Some joint-term insurance policies offer a specified amount as regular monthly payments after the demise of the first policyholder and a death benefit to the nominees after the demise of the second policyholder. These monthly benefits are intended to replace the regular income.
Tax Benefits
The customer can claim the policy premiums as tax deductions under Section 80C of the Income Tax Act 1961. Death benefits are tax-free under section 10(10D) of the Income Tax Act.
How joint term insurance plans work
The following points will assist you in getting a better understanding of how this type of insurance works.
- The Joint Term Insurance works on a first-death basis.
- The surviving policyholder receives a lump sum payment in the form of a death benefit if one of the two insured persons dies during the policy term.
- If both insured members die simultaneously, the sum assured is paid as death benefits to the nominees or legal heirs of the insured.
How is it different from a regular term insurance plan?
Joint term insurance plans and regular term plans operate differently from each other. To learn more about the difference between Joint term insurance plans and regular term plan, check out the pointers below-
- Death benefit payouts The death benefit is another significant difference between these two types of term life insurance plans. A regular-term insurance policy pays the sum assured directly to the nominee or legal heir. On the other hand, under a joint-term insurance policy, it is paid to the surviving insured policyholder. In case of the death of both policyholders in a joint plan, the nominee or legal heir receives death payments.
- Nature of contract In a regular-term insurance plan, you need two policies to cover two individuals with different terms & conditions. However, in Joint Term Life Insurance, you can get a life cover for your wife and yourself under a single policy contract with the same terms and conditions.
- Number of policyholders The number of policyholders allowed is the main difference between a joint term insurance plan and a regular term life insurance policy. A joint term policy supports two people and provides two life covers, whereas a standard term life insurance policy only covers one policyholder.
Some Companies that provides Joint Term Insurance Plan
| Company | Plan |
| ICICI | ICICI iProtect Smart - Joint Life |
| Edelweiss | Edelweiss Zindagi Plus |
| PNB | PNB MetLife Mera Term Plan Plus |
Advantages and Disadvantages of Joint Term Insurance
Since women started to join the workforce proactively, policies like joint-term insurance started to come into the picture. A joint term policy consists of both partners in one policy providing a protection net.
Here is list of advantages of joint-term life insurance:
- Affordable in comparison to two-term plans
Term insurance plans already come with very competitive prices. Buying a joint-term insurance plan adds to this cost-saving. The premiums will be cost-effective when providing coverage for two under one policy. - Tax saving
Joint-term life insurance policies are eligible for a tax deduction under section 80C of the Income Tax Act. - Numerous payout options
A joint-term life insurance policy comes with various payout options. The surviving partner can opt for a lump-sum payout, or a lump sum with a regular income payout.
Here is list of Dis-advantages of joint-term life insurance:
- Single death payout
A joint-term policy only offers a single payout on the demise of one of the policyholders. In the event of the death of both policyholders, the nominee only gets one death benefit. On the other hand, having two-term insurance policies would pay out two death benefits in a scenario like this. - Can be burdensome
If one of the policyholders refuses to pay for the premiums or the couple decides to separate, one of the policyholders might get burdened with the premium payments or have to turn the joint-term policy into a single-term insurance plan. - Might get expensive
Having two policyholders under one policy, adding riders to it, and choosing a sufficient sum assured can make the policy a little heavy-duty. In turn, the premiums might get on the expensive side, making an expensive plan.
Who Should Buy a Joint Life Policy
Generally, joint life policy is designed for couples and offers cost-effective protection in the long term. When either of the spouses dies, apart from the life cover, the surviving spouse is also free from paying the remaining premiums to keep the joint life insurance.
Aside from couples, it is also beneficial for business partners. It allows business partners to use a policy to secure their organization’s interests.
Even parents can also use joint life insurance with their kids to secure the life of the child once both policyholders have passed away. The life cover can be used to protect the financial security of the child, like the costs of education, medical treatments, and regular expenses.
Factors to Consider Before Buying Spouse Term Insurance
Asses Family’s Expenses
Since the main objective of buying insurance is to secure the lives of family members, you should assess your family’s financial expenses to estimate the adequate life cover required for your spouse’s life insurance.Policy Tenure
When purchasing the joint life insurance plan for both husband and wife, you’ve to make sure that the policy tenure is adequate for both spouse’s needs. For instance, if you’ve kids, then you must opt for a lifetime policy tenure to leave an inheritance for your kids in your absence.Premium Cost
Before buying a term plan, ensure that the policy premium cost best fits within your budget. To keep your plan active, you’ve to make a regular payment, but expensive premiums may lead to policy lapse in case of non-payment of premiums.Optional Riders
To increase the base cover of your plan, insurers provide optional add-on benefits with term insurance. You can go through the list of available riders in your plan and add them to the base plan in exchange for additional premiums. It allows both insured persons to get additional coverage against the uncertainties of life.
How to Buy a Joint Term Insurance Plan
You can buy a Joint Term Insurance Plan through an online or offline medium. Both these buying processes are briefly explained below.
Online Mode
- Visit the official website of the Company you have decided to buy the policy from.
- Find the policy from the product list and enter the asked details.
- Choose a Joint Term Insurance Policy that completes your requirements
- Click on buy now and fill out an online proposal form.
- Upload all the required documents.
- Submit the insurance policy documents.
- The company will send you the soft copy of the policy documents in your email
Offline Mode
To buy a Joint Term Insurance Policy offline, you must visit the nearest branch of your chosen insurance company with your spouse and fill out the needed documents. Also, you need to submit the KYC documents to the insurance company.
Conclusion
Now that you know how to apply for a Joint term insurance plan, you must buy one to protect your family. Now, you can also buy your Joint Term Policy through an online medium with no difficulties. If you want to keep receiving the benefits from your joint term insurance policy, pay all your premiums on time.
Joint Term Insurance Plan: FAQs
1. Should I buy a joint term insurance plan for husband and wife or buy different policies?
If you as a couple need similar kinds of coverage, have similar lifestyle patterns, and have very little age difference then you can opt for a joint term plan which will save you from paying for two different term plans.
2. Is a joint term insurance plan expensive?
Since it covers two policyholders and if you add some riders for extra protection and choose a high sum assured then the policy might get a little expensive.
3. Will I get two death benefits if I opt for joint term life insurance?
No, only a single death benefit is given in the case of joint term life insurance.
4. If both of the policyholders die, who gets the sum assured?
The children chosen as the nominees will get the entire lump sum of the sum assured if both the policyholders die.
5. What if I want to opt out of my joint term policy?
You can change your joint term insurance policy into a single term insurance policy.
Other Term Insurance Companies
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Written By: Himanshu Kumar
Himanshu is a seasoned content writer specializing in keeping readers engaged with the insurance industry, term and life insurance developments, etc. With an experience of 2 years in insurance and HR tech, Himanshu simplifies the insurance information and it is completely visible in his content pieces. He believes in making the content understandable to any common man.
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