Bankbazaar

Joint Term Plans v/s Two Individual Term Plans

Joint life insurance policies are chosen by couples to provide coverage for both partners under the same policy. Joint life insurance comes with its own set of benefits and limitations compared to that of individual life insurance covers.
More

Term insurance is a fairly common concept that many people are aware of. However, not many people are aware of joint term life insurance, which is a relatively new insurance product to be introduced in the market. Term plans are one of the most common types of life insurance opted by millions of people around the world, owing to its attractive benefits. Once can get a high amount of sum assured as cover at very nominal or reasonable premiums for a fixed time period of 5 to 30 years. Since they offer the simplest form of risk protection, against the risk of death, they are also known as pure risk protection plans.

What is Joint-life Term Insurance?

The concept of joint term insurance is a recent one which started becoming popular after more and more women began to join the workforce and contribute to the household’s income. This has given rise to the need for both partners to be insured, and that is exactly what a joint term insurance plan does. As the name suggests, this is also a term insurance plan with the only difference being that both partners are covered under a single policy. If either of the partners covered under the policy dies suddenly before the end of the policy term due to a cause that is listed in the policy, the surviving spouse is entitled to the death benefit sum assured.

How this plan works

The working of a joint life term policy is similar to that of a regular term insurance policy. The only major point of difference between these two policies is that while a term plan will cover a single individual, a joint term insurance plan covers two individuals under the same plan. Besides that, most other aspects are same as a term plan i.e. coverage tenure is fixed, premium payment for both partners is combined, and premiums are paid on a regular basis. If either of the insured individuals dies before the policy term ends, the surviving partner gets the death benefit payout.

Claim payout options

In terms of claim payout, joint term plans usually offer multiple options. These include: (i) If either of the policyholders passes away, the surviving policyholder gets the sum assured as death benefit in a lump sum after which the policy ends;

(ii) After the death of one policyholder, the sum assured is paid to the surviving policyholder and the policy continues to provide cover till the end of its term, or till surviving policyholder dies, whichever takes place sooner. Under this option, the future policy premiums may or may not be waived after one policyholder’s death;

(iii) After the death of one policyholder, the sum assured is provided to the surviving policyholder as death benefit in a combination of lump sum and regular payouts for a fixed duration in the future.

Benefits of Joint Life Term Insurance

  • Save money on premiums

Even though term insurance is known to be available at very affordable and low premiums, the premium outgo for two individual term plans will still be higher in comparison to that of a joint term plan. This is the reason why joint term plans are a wiser option for couples who are looking to get covered under a term plan and save on premiums at the same time.

  • Multiple claim payout options

When it comes to claiming payout, joint term plans have a number of options that policyholders can choose from. Just like no two individuals will have the same requirement, the same way, the same payout options may not be suited for everyone. For greater customisation, joint term plans will usually give policyholders the flexibility to choose from an option that closely first their requirements.

  • Tax savings –

Similar to other types of life insurance, joint life term insurance plans also come with tax benefits which policyholders can avail. The premiums paid towards the plan are eligible for tax deduction, as are the benefits which the plan provides, under the provisions of the Income Tax Act, 1961.

  • Riders available –

Like any other type of life insurance plan, joint term plans are also available with riders, which can be purchased over the plan, to enhance its coverage. The accidental death benefit rider (cover against the risk of death caused due to an accident) and terminal illness benefit (if insured is diagnosed with a critical illness, the rider benefit is payable) are two of the most commonly available riders that you can opt for with a joint term plan. The rider premium is over and above the premium charged for the base plan.

  • Easy maintenance –

Timely premium payment is crucial to ensure that you are never left without insurance coverage. However, doing that may sometimes be a tad challenging. However, with a joint term plan, that is no longer a worry as there is only one policy for which premiums have to be paid, instead of two. Also, since both policyholders are given access to the policy account, either one can make the premium payment, in case the other one may have missed doing so.

Joint term insurance or Individual term insurance: Which should you go for?

  Joint Term Plan Individual Term Plan
Coverage A single plan will cover both partners for a fixed period of time A single term plan can only be taken by a single individual. It does not cover more than one person
Sum Assured
  • Sum assured is combined for both policyholders
  • Amount of sum assured will depend on the annual income of each policyholder
  • Terms of coverage will be the same for both policyholders
The sum insured is set based on the policyholder’s yearly income
Premium Premium payment is combined for both policyholders. There is no arrangement to pay premium individually for each policyholder Policyholder pays premiums in exchange for coverage
Who is it fit for
  • For couples with little difference in age
  • For mid-aged partners who wish to save on life insurance premiums
  • Couples where both partners have similar lifestyles and lifestyle habits – teetotallers, non-smokers, etc.
Term plans are ideal for anyone who is looking to get affordable coverage for their dependents. Ideal candidates would be young parents, newly married couples, young people supporting dependents like siblings, or aged parents, etc.
If one insured policyholder dies The sum assured death benefit will be paid to the surviving partner. Policy continuance and waiver of future premiums will depend on the claim payout option that the policyholders have opted for Since there is only a single policyholder, in this case, the sum assured will be given to their beneficiary, after which the policy will cease to provide cover. Since the remaining partner is covered under a separate term plan, they will continue receiving cover.
If both policyholders die In case of death of both policyholders, the legal heir named in the policy will be entitled to the sum assured death benefit according to the claim payout option chosen In the unlikely event that (i) both partners die, and (ii) the spouse has been named as the nominee in each of the two policies, then the sum assured from each policy will go to the legal heir as per the policy document
If both policyholders are divorcing If permitted by the company, the policy may be split. Contact your insurer to explore this option Since both partners have individual policies, they may only have to change the nominee details, if required
 4.5 / 5.0   by 19589 users
Used this product? Write a review >>

Fees & Charges

Promised Interest Rate

Plan Benefits

Payment Options

Policy Coverage

Customer Service

Responsiveness

Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

Joint Term Plans v/s Two Individual Term Plans Reviews

Page 1 of 50 1 2 3 4 5
  • Shriram Life Life Insurance
    "Need to decrease charges"
    0.5 5.0/5 "Blown Away!"
    I have taken a life insurance in SHRIRAM LIFE on 3 months before. The policy is for 10 years. I am paying premium in the yearly package of 15 thousands. There is some additional charges of 4.5% for GST. While getting a policy my agent has given an information about the policy details. It covers my whole family.
    Was this review helpful? 0
    , dharmapuri
    Reviewed on Oct 12, 2019
  • LIC
    LIC Life Insurance
    "Good insurer"
    0.5 4.0/5 "Great!"
    I have taken a life insurance in LIC on 2 years before. The policy is for 20 years. I am paying premium in the quarterly package. While getting a policy my dad is an agent has given an information about the policy details. It is a jeevan anadha policy scheme. It covers up to myself.
    Was this review helpful? 0
    , mangalore
    Reviewed on Oct 12, 2019
  • LIC Life Insurance
    "Good insurer"
    0.5 5.0/5 "Blown Away!"
    On 7 years before I had taken a life insurance in LIFE INSURANCE CORPORATION OF INDIA. The policy is for 18 years. I am paying premium on yearly basis for the amount of 7 thousands. While getting a policy my agent has given an information about the policy details and provided documents as well. I use to do payment by providing cash to an agent.
    Was this review helpful? 0
    , coimbatore
    Reviewed on Oct 12, 2019
  • LIC Life Insurance
    "Excellent"
    0.5 5.0/5 "Blown Away!"
    I have a life insurance with LIC and it was purchased before 3 to 4 years. The policy called JEEVAN ANAND with the tenure of 21years. I am paying 1547rupees annually through cheque to the LIC agent. I am happy with the benefits. It was taken for savings.
    Was this review helpful? 1
    , jalgaon
    Reviewed on Oct 11, 2019
  • LIC Life Insurance
    "Good insurer"
    0.5 4.0/5 "Great!"
    I have taken a life insurance in LIC on 7 years before. The policy is for 20 years and it is a jeevan anadha. I am paying premium in the half yearly package. While getting a policy my agent has given an information about the policy details. I use to do payment through online.
    Was this review helpful? 0
    , bangalore
    Reviewed on Oct 10, 2019
  • HDFC Life Life Insurance
    "Better Policy"
    0.5 5.0/5 "Blown Away!"
    From my HDFC LIFE, i have taken my life insurance. The executive came to my place and informed me about the policy details and gave me some offer since it was good, i have selected them. I have been paying the premium amount of Rs. 2500 per month. The policy term is 15 years. I am not sure about the sum assured amount.
    Was this review helpful? 0
    , bangalore
    Reviewed on Oct 10, 2019
  • LIC Life Insurance
    "Good Policy"
    0.5 4.0/5 "Great!"
    For the family purpose, i had chosen the Life insurance policy. For the savings purpose, i have selected the LIC company. I am paying the premium amount of Rs. 30000 on a annual fee. I'm satisfied with the sum assured amount. Since my uncle is working as a LIC agent, he referred me about this policy.
    Was this review helpful? 0
    , dindigul
    Reviewed on Oct 10, 2019
  • ICICI Prudential Life Insurance
    "Better"
    0.5 3.0/5 "Satisfactory"
    My term insurance is with ICICI Prudential because of the good benefits. The tenure is 2years, if Incase any demise happened then nominee would be getting 2L from the insurer. I am paying monthly Rs.258 through ECS. The customer service is not up to the mark.
    Was this review helpful? 0
    , bangalore
    Reviewed on Oct 10, 2019
  • Reliance Life Life Insurance
    "Good Service"
    0.5 4.5/5 "Excellent!"
    I have taken Life Insurance policy through Reliance agent directly .I have got all the policy details very clearly through the agent.This was a Maturity benefit policy and got the policy documents on time ,I have got my policy documents on time and the policy tenure is for 10 years ,I am paying the premium through Online only.
    Was this review helpful? 0
    , indore
    Reviewed on Oct 10, 2019
  • LIC Life Insurance
    "Better Policy"
    0.5 4.0/5 "Great!"
    My life was insured in Life Insurance Corporation of India. My family members was having a policy with LIC so i'm continuing with the same company. This is a 16 years term policy. This is a money back policy. I have paying the premium amount of Rs. 3600 for every half yearly. I make the premium through online.
    Was this review helpful? 0
    , erode
    Reviewed on Oct 10, 2019
  • LIC Life Insurance
    "Good Insurer"
    0.5 4.0/5 "Great!"
    I have had taken a life insurance with LIFE INSURANCE CORPORATION OF INDIA. The policy is for 10 years. Now I am paying premium in the yearly package. While getting a policy my agent has given an information about the policy details. It is a child policy and it provides coverage for my son as well.
    Was this review helpful? 0
    , bhiwadi
    Reviewed on Oct 10, 2019
  • LIC Life Insurance
    "Good Insurer"
    0.5 4.0/5 "Great!"
    I have taken a life insurance with LIC on one year before. The policy is for 15 years and it is an educational policy. Now I am paying premium on monthly package. The agent is also my friend so While getting a policy he has given an information about the policy details and documents were provided on time.
    Was this review helpful? 0
    , bhiwadi
    Reviewed on Oct 10, 2019
  • LIC Life Insurance
    "Good Policy"
    0.5 5.0/5 "Blown Away!"
    I pay the premium amount of Rs. 36000 on a yearly basis for my life insurance policy. Chosen my life cover policy from LIC because its like a savings plan. I took the money back policy. Total term period of the policy is 5 years and It has a coverage of Rs. 5 lakhs.
    Was this review helpful? 0
    , bangalore
    Reviewed on Oct 10, 2019
  • Bajaj Allianz Life Life Insurance
    "Very Good Policy"
    0.5 3.0/5 "Satisfactory"
    Benefits are good in Bajaj Allianz hence i have selected the life insurance policy from them. I have been paying the premium amount of Rs. 3500 per year. Sum assured amount is Rs. 3 lakhs and the policy term is 5 years. I make the premium through online.
    Was this review helpful? 0
    , thane
    Reviewed on Oct 09, 2019
  • LIC Life Insurance
    "Average benefits"
    0.5 3.0/5 "Satisfactory"
    I have taken life insurance policy from LIC through agent. The benefits are average when I compared with other insurance companies. It was taken for tax benefits only. The tenure period is 25years. The customer service is better. The payment mode is cash and it will be better if they give online option.
    Was this review helpful? 0
    , coimbatore
    Reviewed on Oct 09, 2019
  • LIC Life Insurance
    "Normal Policy for people"
    0.5 3.5/5 "Pretty good"
    I started the life insurance policy in the year 2017 that time I'm not aware of the policies much but that LIC is a prominent company so i have selected that company. Total term period of the policy is 15 years. I have been paying the premium amount of Rs. 4000 in every quarter. I used to pay the premium through online. They are providing me a sum assured amount of Rs. 2 lakhs.
    Was this review helpful? 0
    , pune
    Reviewed on Oct 09, 2019
  • LIC Life Insurance
    "Policy is Good"
    0.5 5.0/5 "Blown Away!"
    LIC is a good and on time policy. I had taken the policy 9 years before. Its because of the life safety i have chosen them. They are providing a sum assured amount of Rs. 2 lakhs. I'm paying the premium amount of Rs. 5000 and its a moneyback policy. I have chosen the half yearly payment mode. I get Rs. 30000 money for every 4 years.
    Was this review helpful? 0
    , bangalore
    Reviewed on Oct 08, 2019
  • SBI Life Life Insurance
    "Good"
    0.5 4.0/5 "Great!"
    I have one life insurance policy with State Bank of India and it was provided by the bank at the time of taking personal loan. The benefits are good. This policy is valid for 10 years. Actually, its a savings scheme and am paying yearly once 30K via ECS.
    Was this review helpful? 0
    , rajahmundry
    Reviewed on Oct 08, 2019
  • SBI Life Life Insurance
    "Go for a safer insurance policy"
    0.5 4.0/5 "Great!"
    As I'm employee of SBI LIFE, the policy is more convenient for me. I took the United linked Insurance policy. I have been paying the premium amount of Rs. 50000 per year. I have to pay the premium for 5 years but the policy term is 20 years. Growth percentage is 11%.
    Was this review helpful? 0
    , ahmednagar
    Reviewed on Oct 08, 2019
  • Aegon Life Life Insurance
    "Okay"
    0.5 3.0/5 "Satisfactory"
    I got a term insurance policy from Aegon and the premium is very cheaper. The nominee would be getting the benefits and have no idea about the benefits much. Its been 1.5years and the premium mode is online. I am doing monthly around 1200rupees.
    Was this review helpful? 0
    , kolkata
    Reviewed on Oct 08, 2019
Common Loader Icon
Page 1 of 50 1 2 3 4 5
reTH65gcmBgCJ7k
This Page is BLOCKED as it is using Iframes.