Term insurance is one of the simplest life insurance types you can have. The plan provides comprehensive coverage to the insured for a limited period of time. Under the coverage of this policy, if the policyholder passes away, the sum assured is paid to their policy nominee.

Due to the affordable coverage offered by a term policy, it appeals to people who want to provide a financially secure future for their loved ones at low costs.

If you are a young working professional with an average annual income, a term life insurance policy is one of the best insurance options for you.

When a nominee makes a death claim, they will receive the death benefit along with any additional benefits that apply. If you want to secure the future of your loved ones, it is important to understand what is most beneficial to you - buying joint term insurance or individual term insurance.

What are joint term policies?

Term insurance has been around for many years and offers risk protection at a very affordable cost. To accommodate the evolving needs of their consumers, companies have introduced joint term policies - plans that jointly cover you and your spouse under a single term insurance policy. The basic principle of a joint term insurance policy is that the policy covers both spouses in a single plan.

A joint term life insurance policy works in the same way as a regular term life policy. Except, a single plan provides cover for two people instead of just one. Premiums paid for coverage provided to two people are interconnected. The period of coverage and term insurance benefits are fixed and premium payments are usually made throughout the policy term. If one of the insured partners meets an unexpected eventuality before the end of the policy term, the surviving partner is entitled to the sum assured.

Differences between joint term insurance and individual term insurance

• Coverage

In a joint term policy, both partners receive coverage under the same policy. Meanwhile, under an individual term policy, every person has to buy their own coverage. A term insurance calculator will help you in calculating the coverage you will get.

• Sum assured

Under a joint term insurance plan, there is a collective sum assured that is determined for both members of the policy. Moreover, the terms, conditions, and other term insurance benefits associated with the coverage of both members is usually the same.

• Claim for one member

Depending on the term insurance policy you buy, if one person under the joint term plan passes away, the surviving member of the policy will receive the payout. Moreover, the continuance policy of the term plan depends on the plan chosen.

In the case of individual term life insurance plans, the sum assured will be disbursed to the nominee of the insured mentioned in the policy. After the payout, the policy is terminated. 

• Claim for both members

In the case of a joint term policy, there is also a possibility of both covered members of the policy facing an unfortunate eventuality. In such a case, the sum assured will be given to a nominee mentioned in the policy. Since a joint term insurance plan is usually taken by couples, the nominee is often their legal heir.

The fact of the matter is that eventually it is up to you whether you want to buy a joint term policy or individual policies. Both options have their own merits and demerits. Hence, the best thing for you is to compare the term insurance benefits of both options for you. Whichever option benefits you more and for a longer time is ideally the better choice for you.