Joint VS Single Term Insurance Plan

Term insurance is an economical way to financially safeguard your family with a substantial corpus, regardless of what life has in store for you. The family can still survive, and the children can continue their education as you had planned and envisioned.

Even though you may be diligently saving month-on-month, savings can evaporate when there are financial and health emergencies. Having a comprehensive term insurance policy that gives a guaranteed sum assured and additional benefits in case of accident or total permanent disability is highly recommended. Therefore, life insurance should also find a place in your portfolio in addition to bank deposits, gold, equities, bonds, real estate and other asset classes.

A joint insurance plan covers two individuals under a single policy and is designed to cover couples. This plan pays the sum assured on the death of either of the two insured and, in some cases, provides a regular income to the surviving partner. Joint term insurance plan ensures that the surviving partner can maintain their standard of living, meet household expenses, and secure future goals without facing financial hardship.

Joint term insurance plans are often more affordable than purchasing two separate term policies, and they offer the convenience of a single premium payment and unified policy management. Depending on the insurer and plan features, coverage may continue for the surviving spouse after the first claim, or the policy may terminate once the benefit is paid out.

How does a Joint Term Plan Work?

Assume Mrs and Mr Kini purchased a joint life insurance policy. The convenience of covering both partners in one policy and the ease of managing the policy made the couple opt for a joint term plan. Mr Kini, the family's lone income earner, has chosen a sum assured of ₹. 50 lakh. Mrs Kini is eligible to receive ₹ 50 lakh from the insurer if Mr Kini dies within the policy's term.

Just like a regular term plan, you and your spouse pay a premium for a specific period to remain jointly covered under the policy. At any point, if either of you, unfortunately, passes away, the sum assured would be paid to the other. However, joint life insurance has a few advantages over two individual policies.

Features of the Joint Term Insurance Plan

Some of the features which make this plan unique and extremely helpful as a joint life policy are:

• Joint Life with Homemaker Spouse: Even when your spouse is a homemaker, her contribution to your life and your children’s is immense. iSelect Smart360 Term Plan by Canara HSBC Life Insurance allows you to include your homemaker spouse under the same plan.
• Premium Waiver after the Demise of one Spouse: In the unfortunate event of one partner’s death, the policy does not lapse. The surviving spouse continues to remain covered under the same policy without having to pay any further premiums. 
• Terminal Illness Benefit: The sum assured will become payable to the spouse if diagnosed with an end-stage life-threatening disease.
• Child Care Benefit: This is an optional add-on cover which the couple can add to their running policy within one year of their first childbirth.
• Block the Premium Option: This option allows you and your working spouse to block the policy premium for five years after the inception. Within this period, you and your working spouse can increase your sum assured in the policy without going through the whole proposal process.
• Accidental & Critical Covers for Spouse: Your working spouse can have all the additional cover benefits within the policy without restrictions on the sum assured to term.

Multiple benefits make term insurance a valuable financial planning instrument. If you have dependents, you must protect them against any financial crisis in your absence. Apart from standard saving instruments, term insurance is a must to defend your family against any unforeseen hardships. The sum assured or term insurance cover is the factor which will affect the well-being of your dependents in your absence.

Joint Vs Single Term Plan

A joint life insurance policy is the best option  for married couples because it turns out to be cost-effective in the long run. If one of the partners dies, the surviving spouse can claim the full sum assured. The policy remains in force, and the surviving spouse is exempt from paying future premiums.

A Quick Comparison:

When to Use a Joint Term Plan?

Your investment portfolio would anyway have multiple FD Receipts, a PPF Account, NPS Account, Gold, Real Estate, etc. Managing multiple insurance policies will only add to your woes. Why not simplify by availing of a joint-life policy?

With volatile markets, redundancy of jobs, the emergence of newer illnesses and the rise of nuclear families, you must plan for all situations. People work on gigs, stay home to manage the household or move places for better opportunities. The Sum Assured on a term insurance policy is calculated basis the Human Life Value (HLV), which is estimated to be around 15times the person’s annual income.

The joint-term plan benefits are useful in case either of you plans to become a stay-at-home parent until your child grows up. The Sum Assured is payable in case of the unfortunate demise of either parent.

Conventional policies frown on offering  life cover to a non-working person.

Final Thoughts

Choosing a joint term insurance plan helps you simplify financial protection for your family. You save on premiums, reduce policy management hassles, and ensure continued coverage even if one partner passes away. Features like premium waiver, child care benefit, and cover for homemaker spouses make it a smart choice for couples planning long-term security. If you want a flexible, affordable policy that grows with your needs, consider the iSelect Smart360 Term Plan by Canara HSBC Life Insurance. It offers customisable coverage, return of premium, and built-in options for spouse and child care benefits. Secure your family's future today.