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.
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.
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 |
Any company that sells an insurance policy is the insurance provider. A good insurance provider has a high CSR, solvency ratio, good customer reviews, a vast product portfolio, and transparency towards its customers.
A good term plan consists of various coverage options, flexibility to choose death payout, flexibility in premium payment terms, offers premium discounts, lets you add riders, comes with loaded inbuilt benefits, and is easy on your pocket.
Claim Settlement Ratio is the percentage of claims settled by an insurer compared to the total claims received in a financial year. A good CSR lies somewhere between 95 to 99 percent.
The age (last birthday) at which you buy an insurance policy is your entry age to that policy. Insurance policies usually come with a minimum and maximum age at entry which means that you must attain a specific age or should be less than the maximum age to buy a policy.
The date at which your life insurance policy ends is known as the maturity age of your policy.
Following are the benefits of a joint term plan.
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.
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.
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.
The following points will assist you in getting a better understanding of how this type of insurance works.
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-
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 |
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:
Here is list of Dis-advantages of joint-term life insurance:
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.
You can buy a Joint Term Insurance Plan through an online or offline medium. Both these buying processes are briefly explained below.
Online Mode
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.
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.
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.
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.
No, only a single death benefit is given in the case of joint term life insurance.
The children chosen as the nominees will get the entire lump sum of the sum assured if both the policyholders die.
You can change your joint term insurance policy into a single term insurance policy.
Check and compare plans from 21 IRDAI-approved term insurance providers before purchasing a term plan.
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Priya has been in the content writing industry for over 8 years. She has been religiously following the insurance sector since the start of her career which makes her an avid insurance expert. Her forte lies in health, term, and life insurance writing, along with her knowledge of the latest developments in the insurance sector.