Term insurance is one of the many ways in which you can secure the financial future of your loved ones. The policy is the most affordable life insurance product available in the market.
However, due to its rising demands, insurers offer several variants of term insurance to their customers. The two viable term insurance plans that usually people are torn between include – individual and joint term insurance. Let us take a look at the two policies in detail for a better understanding.
Single Term Insurance vs Joint Term Insurance
Before you buy term insurance in India, you must evaluate a few things. These include your family’s financial necessities, current situation, and expenses. After this, you can weigh the pros and cons of the chosen plans and come to a decision.
The following table gives an overview of the individual and joint term plans for your understanding –
|Single Term Insurance Plan||Joint Term Insurance Plan|
|Policy Type||It is a term insurance plan for individuals. The policy provides basic term insurance benefits to a single person.||Couples usually take a joint term insurance plan. The policy provides basic term insurance coverage to both the parties involved.|
|Premiums||Usually, single term insurance has affordable premiums as the policy covers an individual. You can use the term insurance premium calculator to determine the premium amount charged on your chosen coverage and benefits.||The joint term insurance premium amount can be slightly more than a single term plan as the policy covers two people.|
|Death Benefit||If the policyholder dies, the death benefit is given to the beneficiaries of the policy (spouse, children, or parents).||Here, two scenarios are taken into consideration:
|Add-On Benefits||You can extend the coverage of the single term plan using rider benefits. Note that you have to pay an additional amount on your current premium for every rider benefit you select.||Similar to a single term plan, you can extend the scope of a joint term plan with rider benefits.
Also, you have to pay an additional amount for each rider benefit you select.
|Ideal For?||If you are a sole income earner in the family.||If you have a financially dependent partner.|
Which One Is Better?
As mentioned earlier, there are certain factors that you need to consider before buying either of the term plans. If you don’t know where to begin, start by answer the following questions:
- What is your current financial situation?
- What are your family’s monthly expenses?
- Do you have any financial liabilities?
- What are your family’s financial objectives?
Answers to these questions will allow you to understand your financial requirements in detail. Based on it, you can then choose a term plan – joint term plan or single term plan – that best suits your needs.
In fact, you can also compare different term insurance plans online based on their premiums, coverage, exclusions, benefits and features. This will help you make an informed financial decision that secures the future of your loved ones.
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