Compare Joint Vs Single Term Insurance Plan & Which Is Best for You?

As term plans guarantee a high lump sum at an affordable premium, these are quite popular. Here, the listed beneficiaries can claim life coverage if the insured individual meets an unfortunate death within the policy term.

The thought of consolidating your family’s financial stability for the time when you may not be around them creates stress. Therefore, it is ideal to understand what will be a reasonable choice between single and joint term insurance. Let us analyse the features in single vs joint term insurance to conclude which may be better.

Joint Term Insurance is the policy where both the partners, i.e., an individual and their spouse are covered under the same policy. Couples buy a joint term insurance policy as these plans are ideal for providing combined life coverage at more affordable rates. In case of unfortunate demise of one partner, the other one receives the death benefit and in case where both die at the same time, the listed nominee receives the benefit.

To understand how joint term insurance works, you should learn its types.

• Joint Term Plan: The premium payment is similar to a single term insurance plan. Both spouses furnish the premiums regularly to remain eligible for desired coverage within the tenure. If any of the partners claim the death benefit following an unfortunate incident, then the policy automatically discontinues.
• Joint Endowment Plan: The beneficiaries of this plan receive an amount as endowment if no one dies within the policy period. Thus these plans are ideal for couples considering joint term insurance as an investment apart from a primary protective tool.

Depending on the insurable future interests, you must choose between two separate term plans or joint term insurance. Everyone should be prepared for the worst-case scenario while choosing the optimal amount of cover and budget.

• As both beneficiaries of joint term insurance get equal death benefits, no one feels less protected. However, recently, women are progressively assuming various professional roles. So, they prefer individual policies to compensate for any member's monthly income after their unfortunate demise.
• Single term insurance provides more life coverage to the children in case both parents die in an accident simultaneously. But these plans come at a high cost. Hence if you have a tighter budget, you can ensure a guaranteed lump sum payout for your loved ones by purchasing joint term insurance.

Any couple needs to communicate about their choice regarding buying single vs joint term insurance. If you have no budgetary constraints and feel comfortable maintaining two separate contracts simultaneously, you may choose single term insurance plans over joint term insurance.