Women are an integral part of their family. Whether they are working in offices, running businesses, or are housewives, they provide loving and essential support to their loved ones and are crucial for their family’s well-being. Given today’s rising living and healthcare costs and an increase in critical illnesses, it’s crucial to have life insurance protection for both spouses in the household. Understanding this growing need, life insurers now also offer joint life cover options in life insurance plans.

What is a joint life term insurance policy?

As the name plainly suggests, a joint life term insurance plan provides life insurance coverage to both husband and wife under a single policy. A joint life term insurance plan comes with various features and benefits depending upon the insurer. Most joint term life insurance policies are single death payout policies, meaning the policy stops after the death benefit is paid upon the death of one of the spouses. But there are policies that pay death benefits for both spouses, as well as regular income to the surviving spouse.

When should you buy joint life term insurance?

Joint term insurance is ideal for most nuclear families as both spouses are responsible for their family, especially when they have home loans and personal loans to pay. It also protects the family against the death and disability of any earning member of the family and lightens the financial burden. Young couples with kids and outstanding loans should also opt for a joint life term insurance policy to secure their children against any future mishaps.

Many people mistakenly believe that housewives cannot invest in a term plan. This belief has been perpetuated because, according to IRDAI regulations, a non-earning member of the family cannot buy term insurance. But there is an exception to the rule. The husband can buy term insurance for his wife. In such a case, a joint life term insurance policy makes even more sense.

In fact, according to a study, term life insurance is gaining popularity among homemakers, despite the fact that they don't have any fixed source of income. Research also found that 45% of homemakers are actively involved in the decision-making process with their husbands when purchasing term insurance for themselves. Research also revealed that 81% of salaried and 66% of self-employed women make a joint decision when it comes to purchasing term life insurance.

The best time to buy a joint insurance plan is at the earliest because factors like age and medical history also affect the cost of the joint term plan.

Benefits of joint life term insurance

In most cases, joint life term insurance will cost you comparatively less than buying two separate term insurance policies. It is also easy to keep track of the plan when both the husband and wife are covered under a single policy. Another advantage of a joint life term insurance policy can be the waiver of premium feature. In case your joint life term insurance plan comes with double pay out, i.e., on the death of one spouse, the other gets a lump sum payment of death benefit and a waiver of the future premium with continued life coverage for the surviving spouse. In the case of the demise of both the joint holders, the sum assured is paid to the children or legal heirs. However, these features can vary from one plan to another. Premiums paid on a joint life term insurance policy are eligible for tax deductions under section 80C, and the death benefit received is exempt from tax under section 10 (10D) of the Income Tax Act.

Some joint life insurance policies also allow riders for critical illnesses, permanent disability, dismemberment, and accidental death. Whatever the variations and conditions of the policy, a joint life term insurance policy has a host of features and benefits that are really advantageous to the couple and their children or dependents.

However, please read the benefits, exclusions, terms, and conditions properly before buying a plan to be sure that it suits your requirements. Keep the above points in mind before buying a joint life term insurance policy to take maximum advantage in terms of cost and sum assured.