Why is joint term coverage better than a single term insurance?

Marriage can be a joint responsibility. After you get married, you and your partner might equally divide the financial and household responsibilities amongst yourselves. However, if one of the partners passes away, either one of you might have to bear the burden alone. To ensure you have an adequate financial backup in each other’s absence, you should buy joint term insurance. Therefore, let’s first understand what the term insurance meaning in detail is:

As the name suggests, a joint life policy can provide term insurance benefits to you and your spouse during unfortunate events, such as loss of income, death, critical illness, physical disability, and so forth. The primary objective of joint term insurance can be to cover both the partner equally from uncertainties. Many of you might contribute to your family’s well-being jointly with your partner, which is why you should buy a term policy for the two of you.


Today, many insurance companies can offer a joint term insurance policy for the financial security of couples. However, the terms and conditions of different joint-life policies can vary from one insurance to another. While a joint life term policy can provide a life cover to the surviving partner on the death of the primary policyholder, the rest of the insurers might waive the premium off one of the partners’ deaths.

Before you purchase a joint life term for you and your spouse, it can be essential to know the basic working structure to make informed decisions at the time of purchase. Therefore, let’s understand the working of a comprehensive joint term insurance plan with the help of an illustration:

Rishi and Riya have purchased a joint life term insurance policy for themselves. While Rishi is 30 years older, Riya is a 28-year-old woman when purchasing the joint-life term policy. Their joint term policy’s selected tenure is for 30 years, with a total sum assured value worth Rs. 1 crore.

Now, let’s assume that Rishi passes away after the fifth year of the joint-term policy. After Rishi’s demise, Riya can be eligible to receive a payout of Rs. 1 crore. Moreover, their insurance company would pay a monthly payout for the next five years at the rate of 1.75% of the sum assured, making the overall sum assured amount of Rs. 2.05 crore. After the provision of the monthly benefits, your joint term policy can terminate.

A joint term life plan can be available with different options in the market. Due to the several alternatives, you might be confused when purchasing to understand which joint term policy can be suitable for you and your partner. Therefore, let’s take a look below to understand the simplest way to buy a joint term insurance policy:

The easiest way to compare different options available in the market can be on your insurer’s online portal. When you analyze the available joint term insurance policies, you can identify the features, benefits, terms, and conditions of every joint life policy. Based on the comparisons, you can choose a final policy, allowing the two of you to suffice financially without each other in the long run.

  • Determine the premium value

The premium can be an essential aspect of your joint term life policy. Since regular premium payment can ensure your life cover’s continuous flow, you should determine the premium value before buying a joint term policy. Typically, you can calculate the premium amount on your insurance company’s official website using a term insurance premium calculator.

  • Buy an online joint term plan.

Although insurance products can be purchased from your insurer’s office, you should buy a joint term plan directly from your insurer’s online portal. An online joint term policy can be a convenient, affordable, and flexible form of insurance.

As highlighted above, joint-term insurance can provide additional coverage to safeguard your and your spouse’s future together. However, consider all your financial requirements and choose a joint term plan that can align with your needs and goals. Since joint planning can be complex, get professional help to ensure the smooth flow of the process.

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