Individual Term Insurance V/s Joint Life Term Insurance

Though not very common in the life insurance industry, joint life insurance policies are offered by some insurers in the market. These policies are often preferred by couples who wish to get coverage for both of them within the same policy.
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About Joint Life Term Insurance

Term insurance planshave been around for many years, and offer pure risk protection at very affordable costs. However, as years have passed, more and more women have joined the workforce. As a result of which, it is common to find nuclear households where both spouses work to financially provide for the family. With this change in family income dynamics, it has become essential that due importance be given to both earning members in the family, especially the woman. Taking a hint from this changing trend, insurers have introduced a unique term life insurance product which covers a both partners jointly under a single term insurance policy. These policies are known as joint life term insurance policies and are offered by many insurers in India. The basic premise of a joint life term insurance policy is that the policy covers a couple as a whole under a single plan, and on the death of either spouse, the plan provides a sum insured payout to the surviving spouse.

Features/Benefits of Joint Life Term Insurance Plans

  • Claim Payout Options – Joint life term policies offer a number of claim payout options to policyholders. For instance, some joint term policies make claim payouts on the first claim basis wherein the complete sum assured is paid to the surviving beneficiary in case of the death of one of the policyholder, following which the policy ceases to provide cover. Another option that can be chosen is to receive a certain amount of the sum assured on the death of each insured policyholder.
  • More economical - Joint life term insurance policies are often more cost effective compared to the premium cost involved in the purchase of two individual term insurance policies.
  • Easier to maintain – When it comes to insurance, it can often be difficult for one to keep track of premium payments. That hassle is doubled if a couple has two separate term plans. A joint term plan, on the other hand, helps eliminate this hassle, as it is a single plan which covers both individuals. Therefore, the hassle of maintaining two individual policies is eliminated here. Also, both partners can manage the account, which makes it easier to make premium payments on time.
  • Tax benefits – Just like any other life insurance plan, joint life term insurance plans also offer attractive tax benefits to policyholders on the premiums which they pay towards the plan. Also, the benefits received under the plan are also tax-free under the provisions of the Income Tax Act of 1961.
  • Additional benefits – Besides the above benefits, joint plan also provide other options in term of the claim payout. Under some joint term policies, the surviving spouse is eligible to receive a regular income for a specified duration, in addition to the sum assured death benefit which is paid on the demise of one of the insured partner. Some joint life term plans offer an additional amount of benefit, if one of the insured has passed away following an accident.
  • Riders available - Furthermore, certain joint term plans which have been introduced lately offer a number of additional benefits such as a built-in accidental death benefit (if death has occurred due to an accident), or a terminal illness benefit (where the one of the insured has been diagnosed with a life-threatening medical condition).

How Do Joint Life Term Plans Work

A joint term life insurance policy works similar to a regular term life policy. However, here, a single plan provides cover to two individuals, instead of just one. The premium paid towards coverage provided to the 2 people is combines as one. The coverage term for the policy is fixed, and premium payment is usually throughout the tenure of the policy. In case either of the insured partner passes away before the policy term expires, then the surviving partner is entitled to the um assured benefit amount.

Payout Options Under Joint Life Term Insurance Plans

When it comes to claim payouts, there are various options available under joint term insurance policies. In case of demise of one insured partner, and depending on the type of payout option that has been chosen, the surviving policyholder can choose from the following options:

  1. Receive the sum assured benefit amount in lump sum, following which the policy will terminate.
  2. Receive the sum assured benefit amount, after which the policy will continue, either with or without waiver of future premiums. The policy will terminate either when the last surviving insured partner dies, or the policy tenure gets over, whichever happens earlier.
  3. Some policies will provide the surviving insured policyholder with the life cover amount, along with regular payouts for a fixed time period.

Joint Term Plans Versus Individual Term Plans

Criteria Joint Term Plan Individual Term Plan
Coverage Both partners are covered under a single policy. Each partner takes an individual policy.
Sum Assured The collective sum assured is decided based on the yearly income of the policyholders. Both partners are usually covered under the same terms. Sum insured is decided based on the policyholder’s annual income.
Death of one insured partner Depending on the plan that has been chosen, the payout will be made to the surviving partner. Policy continuance will depend on the type of plan that has been chosen. The complete sum insured amount will be provided to the nominee names in the policy, following which the policy terminates. The surviving partner continues to be insured as they are covered under a separate plan.
Death of both insured partners If both partners have perished, the sum insured amount will be provided to the legal heir named in the joint life term plan. If both partners have taken individual policies, each policy will provide the sum assured payout to the legal heir named in the policy.
Divorce In case of divorce, the insurer must be contacted to find out if the policy can be split to be continued. If both partners have taken individual term plans, then there is no change. Only change required in this case may be for the nominee details, in case the spouse has been named as the nominee under the policy.

Suitability

Joint life term plans Individual term plans
These plans are suited for:
  • Partners who are of approximately the same age
  • Middle aged couples who want to save on policy premiums
  • Partners who have matching lifestyles – smokers, non-smokers, etc.
These plans are suited for:
  • Those who have recently started working and are supporting dependents
  • Couples with a wider age difference since the combined premium may be lower than what may have to be paid by the older partner
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Individual Term Insurance V/s Joint Life Term Insurance Reviews

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  • LIC Life Insurance
    "Good insurer"
    0.5 4.0/5 "Great!"
    I have taken a life insurance in LIC on five years before. The policy is for 20 years. I am paying premium in the quarterly package the amount which is nominal for me. While getting a policy the agent has given an information about the policy details.
    Was this review helpful? 0
    , ranchi
    Reviewed on Dec 13, 2019
  • LIC
    LIC Life Insurance
    "Good "
    0.5 5.0/5 "Blown Away!"
    On 10 years before, I took life insurance policy for my spouse in LIC with tenure period of 15 years. Since its money back policy, 5 years once I got amount of 5K which I have received for twice . I use to pay premium on quarterly basis of the amount of 3087 rupees which is nominal. The agent has given an information about the policy details and provided hard copy of documents on time.
    Was this review helpful? 0
    , kolkata
    Reviewed on Dec 13, 2019
  • LIC Life Insurance
    "Good insurer"
    0.5 5.0/5 "Blown Away!"
    I have taken a life insurance in LIC on 9 years before. Tenure period of 15 years. I am paying premium on half yearly package the amount of 6490 rupees which is nominal. The agent has given an information about the policy details. It covers myself and the policy name is Jeevan Anand.
    Was this review helpful? 0
    , kolkata
    Reviewed on Dec 13, 2019
  • LIC Life Insurance
    "Moderate service"
    0.5 5.0/5 "Blown Away!"
    I have taken Life Insurance policy directly through LIC agent .This was a maturity benefit policy for the tenure of 21 years.I am paying the premium on monthly basis .I am paying the premium through online .This policy is still alive and all the details about the policy was clearly explained by the agent.
    Was this review helpful? 0
    , bangalore
    Reviewed on Dec 13, 2019
  • HDFC Life Life Insurance
    "Worst Life Insurance Company Ever"
    0.5 0.5/5 "Unacceptable"
    HDFC Life is one of the worst companies you would want to take your life insurance from. I am writing this review with my personal experience + experiences of some other users who purchased the policy. They are running a scam where about 1 yr after issuing your policy, they automatically cancel it, citing "non disclosure of pre-existing illness" as the reason. The same thing happend with me and many others. I have no such reported illness of any kind. And even if I had, why was the policy issued in the first place? Upon my request to provide an explanation or more detail about this 'illness', no respone was given to me, neither by HDFCLife nor by Policybazaar, through which I had purchased this policy. I was cheated of my one-year premium amount and my policy was lapsed. If you are at all serious about preserving your mental and financial well-being, do not go anywhere near any of these two companies. They are the biggest fraud in the life insurance market.
    Was this review helpful? 0
    , jaipur
    Reviewed on Dec 13, 2019
  • LIC Life Insurance
    "Good Service"
    0.5 5.0/5 "Blown Away!"
    I have taken Life Insurance policy directly through LIC agent .This was a maturity benefit policy for the tenure of 15 years .This policy is still alive and got all the relevant details about the policy through the agent .The policy documents was shared on time .I am comfortable with the service.
    Was this review helpful? 0
    , bangalore
    Reviewed on Dec 12, 2019
  • LIC Life Insurance
    "Good Service"
    0.5 5.0/5 "Blown Away!"
    I have taken Life Insurance policy which was taken through LIC agent.This was an endowement policy and paying the premium on yearly basis .The policy tenure is for 15 years and paying the premium through the agent .This policy is still active and i am comfortable with the service .
    Was this review helpful? 0
    , pune
    Reviewed on Dec 12, 2019
  • Bajaj Allianz Life Life Insurance
    "budget Plans"
    0.5 5.0/5 "Blown Away!"
    Bajaj Allianz life insurance is very flexible. I have taken a policy. The Premium was given as per my budget. Plans and benefits are great, If anyone wants to go a life insurance my first suggestion will be Bajaj Allianz life insurance. Thanks
    Was this review helpful? 0
    , chennai
    Reviewed on Dec 12, 2019
  • LIC Life Insurance
    "Good Policy"
    0.5 5.0/5 "Blown Away!"
    I took my life insurance policy from LIC around 5 years back and this policy is going to matured in the year of 2026. It was for the safety and protection for the family. I have selected the payment option as very half year and i pay the premium amount of Rs. 2000. I will give the cash to my agent and he will pay in the LIC office.
    Was this review helpful? 1
    , bangalore
    Reviewed on Dec 11, 2019
  • LIC Life Insurance
    "Safe and secure policy"
    0.5 5.0/5 "Blown Away!"
    LIC policy is safe and if you have a long term policy, it will be useful. If i go to their office, the response is fine. They have a good portal to know about the payment premium amount and existing policy details. I make the premium through online. I took the money back policy and it got matured already.
    Was this review helpful? 1
    , bangalore
    Reviewed on Dec 11, 2019
  • LIC Life Insurance
    "Good security policy"
    0.5 3.5/5 "Pretty good"
    In LIC website, they are updating the policy details on a timely basis. I took my retirement plan in life insurance corporation of India. For the safety purpose, i have selected this company. I am investing the money of Rs. 10K every month. I get the returns after my age of 56. This is a tax benefitable policy.
    Was this review helpful? 1
    , haridwar
    Reviewed on Dec 10, 2019
  • LIC Life Insurance
    "Service should be improved"
    0.5 3.5/5 "Pretty good"
    I have taken money back policy from LIC its because of the safety reason. I have been investing the money of Rs. 10K every month. I purchased the policy 4 years ago. They are providing the sum assured amount of Rs. 1.2 lakhs. This is a tax beneficial policy. I make the premium amount through online.
    Was this review helpful? 1
    , haridwar
    Reviewed on Dec 10, 2019
  • LIC Life Insurance
    "Good policy"
    0.5 5.0/5 "Blown Away!"
    I didn't use the customer care service till now in LIC where i have taken my life insurance policy. I'm not sure about the plan name but i pay the premium every year once. I have been paying the premium amount of Rs. 17699 and total term period of the plan is 16 years. For the savings purpose, i have chosen LIC.
    Was this review helpful? 1
    , bangalore
    Reviewed on Dec 10, 2019
  • LIC Life Insurance
    "Best service "
    0.5 3.0/5 "Satisfactory"
    I have taken Life Insurance policy directly through LIC agent .This policy tenure is 10 years .I am paying the premium through Half yearly basis and paying the premium through Online .The agent gave a clear picture about the policy and not yet faced any difficulties .I am satisfied with the service so far .
    Was this review helpful? 1
    , mumbai
    Reviewed on Dec 10, 2019
  • LIC Life Insurance
    "Excellent"
    0.5 5.0/5 "Blown Away!"
    I have taken a life insurance in LIC since 1990. This policy term is 20 years. I am paying premium on monthly package and the amount which is nominal. I am paying premium in a cheque mode. While getting a policy my agent has given an information about the policy details and this is a money back policy.
    Was this review helpful? 0
    , kolkata
    Reviewed on Dec 10, 2019
  • LIC Life Insurance
    "Good Service"
    0.5 2.0/5 "Expected more"
    I have taken Life Insurance policy taken through LIC agent.This was a Maturiy benefit policy and each and every details was shared by the agent .This policy is still active and there was no difficulties faced as well. Overall am happy with it.
    Was this review helpful? 0
    , surat
    Reviewed on Dec 09, 2019
  • LIC Life Insurance
    "Good insurer"
    0.5 5.0/5 "Blown Away!"
    I have taken a life insurance in LIC on 9 years before. Tenure period of policy is 20 years. I am paying premium on quarterly package the amount of 3K which is nominal. Agent is my neighborhood so he has given an information about this policy. It covers my whole family.
    Was this review helpful? 0
    , pune
    Reviewed on Dec 09, 2019
  • LIC Life Insurance
    "Best policy"
    0.5 5.0/5 "Blown Away!"
    I have taken a life insurance in LIC on 3 years before. The policy is for 16 years. I am paying premium on monthly package the amount of Rs. 17k which is nominal. I am paying premium manually. While getting a policy my agent has given an information about the policy details. It covers myself. It is a jeevan anadha policy
    Was this review helpful? 0
    , chennai
    Reviewed on Dec 09, 2019
  • LIC Life Insurance
    "Good Investment plan"
    0.5 5.0/5 "Blown Away!"
    LIC plan is a savings cum income plan and i get the good returns in future. Its covers for life. I took the policy through agent who is my relative recommended me about this policy. My father is taking care of the premium part hence I'm not sure about the coverage value.
    Was this review helpful? 1
    , bangalore
    Reviewed on Dec 08, 2019
  • LIC Life Insurance
    "Best policy"
    0.5 5.0/5 "Blown Away!"
    I have taken a life insurance policy from LIC more than 5 years.The agent is very supportive and providing proper guidance and this is a JEEVAN ANAND policy. Policy is valid for life long and the tenure is 20 years after some years. I am paying annual premium is Rs.24k, this is a death benefit plan after that my wife will be getting some returns.
    Was this review helpful? 0
    , chennai
    Reviewed on Dec 07, 2019
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