Joint Term Insurance Policy for Husband and Wife

Riya and Akshat got married and promised each other a life filled with love, laughter, and abundant happiness. Both were young professionals with dreams of buying a home, starting a family, and building a secure future. They planned everything—from vacations to investments. But at the moment a financial advisor asked if they had a term insurance plan, they paused.

In this blog, we will find out the best joint-term insurance plan for Riya and Akshat.

What is Joint Term Insurance?

Joint Term insurance is one of the most popular insurance plans that cover two individuals—usually spouses—under one umbrella. It ensures that in case of the unfortunate demise of either partner during the policy term, the surviving spouse receives the sum assured. Some advanced plans even continue to provide coverage after the first death.

Key benefits of the Joint Term Insurance Plan

The dual benefit to the couple for the life-assured

A Joint Term Insurance Plan is more affordable than buying two individual life insurance policies. In a Term Insurance plan offering joint coverage for spouses, an additional benefit will be paid out in case of the sudden demise of the primary policyholder. In case the primary life policyholder dies, the base policyholder will get the sum assured, and the surviving spouse will be covered under the policy with 50% of the sum assured. 

Affordable Life Insurance

Another best part about buying joint term insurance for couples is that it is less expensive than buying a separate term plan for each spouse. In a single premium, it covers both the husband and the wife. Keeping track of single insurance will be much easier and cost-effective.

Avail of the benefit of the Term plan waiver upon the death of the life insured

In case a couple passes away, leaving behind children during the policy term, their children as beneficiaries would get the sum assured as a regular monthly income or lump sum. At that time, joint-term insurance for couples would be a great help for the dependents in meeting their financial needs.

Tax Benefit

You would be apprised to know that Term Insurance in India would be eligible for tax benefits under the different sections of the Income Tax Act 1961. Couples can avail of tax benefits under Section 80C on producing a renewal premium receipt. Also, the sum assured received is covered under Section 10(10D).

You can maintain a good standard of living

If both spouses are earning members, the family will be dependent on the earning members to fulfill all the financial needs. Joint term insurance for couples helps in maintaining the standard of living even after the policyholder's unfortunate demise. Term insurance would aid the family and ensure their financial needs are taken care of.

Also Read: Things to consider before buying a term insurance

Difference between Term Insurance & Joint Term Insurance

Conclusion

Joint Term Insurance for a Couple is more than a financial investment— it ensures peace of mind and a promise of protection. By selecting the right term plan, couples like Riya and Akshat can ensure that no matter what life throws their way, they’re prepared, together.

FAQs

What is the difference between a Joint Term Plan and an Individual Insurance Plan?

The joint term plan financially covers both lives, whereas individual term plans require separate policies for each person. Joint plans are usually more economical and easier to manage.

Can both earning and non-earning spouses be covered?

Yes, you can purchase joint-term insurance for a couple where one is an earning member and the other is a homemaker, acknowledging the contribution of both.

Is a joint-term policy less expensive than two separate policies?

Yes, in most of the scenarios, joint policies offer lower premiums than purchasing two individual term plans, making it a cost-effective option for couples.