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Joint Term Insurance Plan or Two Separate Term Plans Which Option Is Better Research Team | Posted On Tuesday, January 01,2019, 06:48 PM

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Joint Term Insurance Plan or Two Separate Term Plans Which Option Is Better



Term Plans: Which Option Is Better?

Term insurance policy is a traditional form of life insurance that offers life cover at a nominal premium. The term insurance plan is popular amongst the masses as it is affordable. On the death of the insured within the policy term, a death benefit is paid out to the nominee.

SEE ALSO: 7 Reasons Why You Should Buy Term Life Insurance Plan

What should you do as a married couple when it comes to buying a term insurance plan?

Married couples can either opt for two separate term insurance policies or can avail a joint term plan. Discussed below are the benefits and importance of availing a joint term insurance policy. 

Is there a term plan for a couple?

Yes, there is a scheme known as joint term insurance plan that can be bought to secure or provide cover to the insured and spouse. Instead of buying two separate term plans, a couple can opt to purchase a single term insurance policy that will save him from the hassles of paying multiple premiums. Before going any further, we must discuss what are a joint term plan and its advantages.

SEE ALSO: Why You Need A Term Insurance Plan?

What is joint term insurance policy?

The term insurance policies were mainly targeted at the breadwinner of a family and provide the dependents with financial stability in his absence. With more and more women joining the workforce, the need for securing their lives with insurance is on the rise. If in a family there are two earning members (husband + spouse), insurance companies have come up with joint term insurance policy.

A joint term insurance policy secures the couple by providing life cover for a specified period of time. The terms and conditions of the joint term insurance policy are similar to the individual term insurance plans. Under this plan both the husband and wife are covered under a single policy.

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A Joint Term Insurance Plan or Two Separate Term Plans: Which Option Is Better?

How a Joint Term Insurance plan works?

There is a single policy for both the partners known as the joint term insurance policy. The policy holders have to pay a combined premium throughout the tenure of the policy. The policy duration is fixed at the time of purchasing the policy. The sum assured in a joint term insurance policy is paid out on first claim basis. In case any one of the policy holder expires during the tenure of the policy, the sum assured is given to the surviving partner.

The tenure of the policy also lapses at this time. In case of demise of both the policy holders, the sum assured is given to their children. The premium paid and the benefits received on the joint term insurance plan enjoy tax deductions under Section 80C of the Income Tax Act. Death Benefits are tax free under Section 10(10D).

SEE ALSO: Term Insurance for Home Loan

What if the surviving partner dies during the monthly payout period?

In case of demise of the surviving partner during the period of monthly payout, the monthly payment will be given to the children or the legal heir of the policyholder.

What if both the partners die together?

In case both the partners (husband + spouse) die together, the death benefit will be sent to the legal heir as mentioned in the policy. There will be a single payout and no monthly payouts. In such an event the death benefit will be doubled.

What if the married couple get divorced?

In case of a divorce, the policy holders must decide whether to keep the policy in force or not. If the policy continues after divorce, then any one partner has to pay the premium. To avoid complications in the policy the partners must talk to the insurance company and check if there is any clause in the policy with the right to split the policy after a divorce.

SEE ALSO: Best Term Insurance Plans In India

How to Select the Best Joint Term Insurance?

To select the best joint term insurance policy you must follow the steps given below:

  • Go online and visit the web portal of any online life insurer.
  • Search for the best joint life insurance policy.
  • Go through the benefits and features of the policy and check for inclusions and exclusions.
  • Select a joint life insurance policy that is best suited to your needs.
  • You can also compare the different term insurance policies online.
  • Choose a policy after going through the customer rating and reviews

How to Get Joint Term Insurance Quotes Online?

You can get an online quote for your joint term insurance plan by going online and visiting the website of any life insurer. You need to provide the details of your policy along with the personal details of both the partners. You have to then select the term period and the coverage and get a quote.

Joint term insurance plan or two separate term plans - which is better?

Joint term plan

Two separate term plans



The policy expires with the death of one of the partners and the surviving partner is left with no insurance cover.

As there are two separate policies, the surviving partner stays covered and the dead partners policy terminates

Both are covered under a single policy under the same terms

The partners are covered under different policies. Hence each can choose the terms as per their needs

Single payment of sum assured to the legal heir in case both the partners die

Double payment from both the term policies to the legal heir

Suitable for couple who are opting to buy a policy in middle age as premium at this age would be much higher for single policy

Suitable for people of young age as the premium are low and fit within the budget

Suitable for partners with similar lifestyles i.e. smoking and drinking clause

Suitable for partners with different lifestyles

Suitable for couple where the wife is a homemaker and has low income

Suitable for couples with similar incomes

 Both the plans are good and affordable. Before choosing any of the terms insurance policies, always evaluate the needs of your family. Consider the different pros and cons of both the policies and choose a policy that serves your needs.

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