Life insurance plans help secure your life goals. They protect your family from financial stress in case of your demise. Traditionally, term insurance plans have always been associated with a single policyholder. However, with the evolving market and social dynamics, the need to insure multiple people in the policy arose to ensure comprehensive protection to families. Such plans are known as joint term insurance plan. They are especially popular with married couples. They offer life coverage to two individuals within a single policy. Read on to know more.
What is a Joint Life Term Insurance policy?
The Joint life term insurance policy gives coverage to two people. The premium is paid by both the insured pears for the fixed period, and the pay-out is on a first death basis. In case one of the policyholders dies, the sum assured is paid to the other policyholder. However, with the death of one insured partner, the policy expires. If the surviving policyholder wishes to avail the coverage of life term policy further, he/she must purchase a new insurance plan. In joint life policy, both the policyholders are the owners, as well as the beneficiaries under the policy.
What are the types of joint life term insurance?
Joint term insurance plan is of two types- a joint term plan and joint endowment plan.
Joint term plan: A joint term plan has the features of a typical life term insurance, except that it covers two people instead of one as is in the case of the latter. Both the policyholders have to pay a single premium for the fixed term of the policy. If one of the policyholders passes away during this period, the surviving person is entitled to the death benefit. After the death of one insured partner, the joint life policy coverage ends for the surviving policyholder, and he/she needs to buy a new plan for further coverage.
Joint endowment plan: The joint endowment plan has dual benefits of investment and insurance. It is valid for a fixed period- generally before the onset of retirement. After the policy expires, the insurance company will pay you a certain amount called ‘endowment’. A joint endowment plan functions similarly with the exception that the endowment plan will pay the insured pair after the expiration of the policy. Even if one of the policyholders dies, the surviving policyholder is paid the amount. The
endowment plans are also eligible for maturity benefit. However, payment of premium is stopped after the death of either of the policyholders.

Why should you consider joint life insurance policies?
The following aspects of joint term insurance plan make it a lucrative option-
- Low premiums - Joint life insurance plans have low and affordable premiums and thus, does not strain financially while also securing two persons.
- Supplementary income - Some policies provide the added benefit of regular income to the surviving policyholder. When one of them dies, the surviving partner will be provided with a regular income (normally for 60 months) besides the death benefit. This ensures the financial security of the family with a supplemented income.
- Reinforces financial security- Especially for a nuclear family and young couples, it is beneficial to purchase this plan so strengthen the financial security of the family. Irrespective of whether both the spouses are working or only one is working, both of them should be insured. In case of any unfortunate event, the liabilities and obligations will be taken care of by the plan.