Insure With A Two-In-One Plan
Outlook Money|October 2020
Insure With A Two-In-One Plan
A joint term insurance plan is best option to secure the future of your family, spouse and you
Nirmala Konjengbam

When both spouses share the household income and expenses, there is indeed a need to insure their lives. Same holds for parents and children or business partners. And if this can be done jointly, there is the benefit of a single premium, among others.

The insurance industry has evolved over the years to cater to the positive changes in the society. One of the most popular offerings of the industry has been the term plan. It is a product designed to cover the primary breadwinner of the family but now we are seeing double income households where both members contribute to the income of the family. Even when one member is not earning, it is crucial to cover the lives of both through a joint life term plan.

What is a joint life term plan?

Just like a term insurance plan, joint policies provide life cover for both partners. A couple opting for joint term plan would not have to buy single individual term policies. This means a single premium amount for the cover of two people. While it’s primarily designed for married couples, business partners can also take it to protect their work. A parent can opt for a plan with child. Such a plan can help in taking care of future expenses of education or living.

“A joint life term plan is most preferred in the event where a married couple is looking at buying a term plan simultaneously. In case of a joint term plan, both the partners are entitled to individual covers, and also avail discount on the overall premium paid for the plan,” says Sameer Joshi, Chief Agency Officer of Bajaj Allianz Life Insurance.

Key features and benefits of joint life term plan

The biggest feature of a joint policy is also its biggest benefit. A single cover for two lives helps in big savings on premium and this gain can be enjoyed throughout the premium payment term. It means only one policy has to be managed with less hassle of tracking .

“A joint life policy comes around 25-30 per cent cheaper than two individual policies with the same specification. Joint term plans are advisable for couples who wish to buy term cover within their budget line and prefer ease of managing single policy rather having multiple policies serving the same purpose”, adds Anil Kumar Singh, Chief Actuarial Officer of Aditya Birla Sun Life Insurance.

There are different variants of joint term plan available in the market. The most important difference being single or dual death payouts. In some policies, only one death payout would be made and it would be done after expiry of one of the policyholders and the cover would expire after that. However, there are policies which offer dual payouts, at the time of death of both policyholders.


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October 2020