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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"
    0.5 5.0/5 "Blown Away!"
    I have used for 12 years, i have used the MONEY BACK i have received the amount for 4 years once. The maturity period is for 12 years and it gives the policy coverage is for self. The sum assured given with the policy was good. The customer support is good.
    Was this review helpful? 0
    , chennai
    Reviewed on Jul 19, 2019
  • LIC
    LIC Life Insurance
    "Life secure policy"
    0.5 3.5/5 "Pretty good"
    Since its long time term policy. If anything happens the policy covers for life and family will get secured. Last 6 years before, I took this policy. LIC is a government company and they are trustable hence I have purchased the policy with them. I have been paying the premium amount of Rs. 26026 for every six months. Iâ??m satisfied with the sum assured amount.
    Was this review helpful? 0
    , chennai
    Reviewed on Jul 19, 2019
  • HDFC Life Life Insurance
    "Good for family protection"
    0.5 5.0/5 "Blown Away!"
    I have term plan with HDFC life, I have chosen the sum assured of Rs. 75 lakhs it has the duration of 50 years, life cover is upto 75 years. I make the premium around Rs. 800 per month, it has tax cover, critical illness, waiver on premium at disability. Cancer and Heart attack cover is also there.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jul 19, 2019
  • LIC Life Insurance
    "GOOD"
    0.5 5.0/5 "Blown Away!"
    The reason for getting the policy is because it has provided with the good service. I am using the plan from last more than 20 years. The maturity period is for 30 years and the coverage is for self. The premium paying for yearly once as 12K with the policy.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jul 19, 2019
  • DHFL Pramerica Life Insurance
    "AVERAGE"
    0.5 3.0/5 "Satisfactory"
    I have got the policy along with the home loan taken the DHFL. The maturity period is for 15 years where 10 years i have to pay for yearly once of 25K. It is a TERM PLAN, the documentation process was done and i have received the hard copy too of the policy.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jul 19, 2019
  • LIC Life Insurance
    "GOOD"
    0.5 4.0/5 "Great!"
    I am holding the JEEVAN ANAND plan with LIC where i am using from last 11 years, the reason for taking the policy is it is good. The maturity period of the policy is for 25 years, the premium paying for monthly once. The coverage is for self with the policy.
    Was this review helpful? 0
    , pune
    Reviewed on Jul 18, 2019
  • LIC Life Insurance
    "Good insurer"
    0.5 5.0/5 "Blown Away!"
    I have taken a life insurance in LIC on 10 years before. The policy is for 20 years. I am paying premium in the quarterly package. While getting a policy my agent has given an information about the policy details and provided hard copy documents on time. I use to do payment by providing a cheque to an agent.
    Was this review helpful? 0
    , pune
    Reviewed on Jul 18, 2019
  • SBI Life Life Insurance
    "Need to improive their service"
    0.5 1.0/5 "Really Bad"
    I have taken a term insurance in SBI LIFE on 3 years before.The policy is money back for 10 years. I am paying premium in the yearly package. While getting a policy my agent has given an information about the policy details and delay to provide the documents. At an initial they have told to pay only for 3 times but later it for 7 years.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Jul 18, 2019
  • LIC Life Insurance
    "Good insurer"
    0.5 3.0/5 "Satisfactory"
    I have taken a life insurance in LIC before 4 years ago. The policy is for 20 years. I am paying premium in the yearly package. While getting a policy my agent has given an information about the policy details and provided hard copy documents on time. I use to pay the amount to an agent.
    Was this review helpful? 0
    , coimbatore
    Reviewed on Jul 18, 2019
  • LIC Life Insurance
    "Better"
    0.5 4.0/5 "Great!"
    I have multiple policy with LIC and am just paying the policy, not availed the benefits. I pay online and never contacted the customer support. I am paying yearly 1.5L and the payment mode is easy. I took this policies for future savings and tax benefits.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Jul 18, 2019
  • LIC Life Insurance
    "Good insurer"
    0.5 5.0/5 "Blown Away!"
    I have taken a life insurance in LIC on 2 years before. The policy is for 15 years.I am paying premium in the quarterly package. While getting a policy my agent has given an information about the policy details and received a hard copy documents on time. Use to do payments by visiting directly to office.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Jul 18, 2019
  • LIC Life Insurance
    "Trust Worthy"
    0.5 5.0/5 "Blown Away!"
    I pay Rs. 50,000 per annum for multiple policies and it has different tenure period and all has tax saving coverage. Even the sum assured is get vary according to the payment which we pay. The agents are professional, I would like to recommended these policies to all.
    Was this review helpful? 0
    , mumbai
    Reviewed on Jul 18, 2019
  • LIC Life Insurance
    "Average Policy"
    0.5 3.0/5 "Satisfactory"
    At the time of my invest, LIC was a best company. I have chosen the policy 10 years back. I am paying the premium amount of Rs. 10,718 for the term period of 20 years. I select the annual payment mode. I will get a sum assured amount of Rs. 2 lakhs.
    Was this review helpful? 0
    , coimbatore
    Reviewed on Jul 18, 2019
  • LIC Life Insurance
    "Good Policy"
    0.5 4.0/5 "Great!"
    Life Insurance Corporation of India have given me a good amount money when it is paid back. I have invested a money of Rs. 1 lakhs and i have received Rs. 1.73 lakhs after 16 years with a maturity. I make the premium through my account as a Standing instructions.
    Was this review helpful? 0
    , kolkata
    Reviewed on Jul 18, 2019
  • HDFC Life Life Insurance
    "GOOD"
    0.5 4.0/5 "Great!"
    I am using the accidental policy where using from last 8months with HDFC LIFE. The premium paying was monthly once with the insurance policy. The benefits with the policy is good but i have not received the hard copy, coverage is for 20L.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Jul 18, 2019
  • LIC Life Insurance
    "GOOD"
    0.5 4.0/5 "Great!"
    I am using the JEEVAN ANAND plan since from last 12 years with LIFE INSURANCE CORPORATION OF INDIA the maturity period is for 20 years with the insurance policy. The premium paying was yearly once, it gives the policy coverage for self.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Jul 18, 2019
  • SBI Life Life Insurance
    "Excellent"
    0.5 5.0/5 "Blown Away!"
    I have taken a Pradan Mantri Plan from SBI Life when it was launched. I am paying 300 rupees annually for myself and my wife. I think, if accidental death is happened then the benefits can be claimed. I have enabled auto debit option for the payment.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Jul 18, 2019
  • Bajaj Allianz Life Life Insurance
    "Excellent"
    0.5 5.0/5 "Blown Away!"
    I took a money back policy with Bajaj Allianz and the policy period is 16 years. It was recommended by one of my colleague. I have received the insurance copy and the payment mode is easy. It was taken for future savings because I am blessed with 2 daughters.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Jul 18, 2019
  • LIC Life Insurance
    "Excellent"
    0.5 5.0/5 "Blown Away!"
    I have taken 3policies with LIC, all are endowment policies. LIC is a trusted company and they are reliable in India so have interested to take a policy. I am happy with the benefits. I need to pay the premium for 21 years. Previously I made cash payment and now its convenient to pay online.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Jul 18, 2019
  • HDFC Life Life Insurance
    "Okay Policy"
    0.5 3.0/5 "Satisfactory"
    No reason for choosing my insurance policy from HDFC. For income tax returns i bought the policy. I'm paying the premium upto 7 years and after 10 years i will get the returns to my account. I have been paying the premium amount of Rs. 12148 which is a annual payment. The premium is auto deducted from my account
    Was this review helpful? 0
    , thane
    Reviewed on Jul 18, 2019
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