Dos and Don'ts of Joint Life Insurance

  • Life Insurance


With the cost of living rising, and inflation showing no signs of tempering, running a household on one income is getting more challenging with each passing day. It's no wonder then that an increasing number of families are relying on two or more incomes. Double income households are the need of the hour.

And when there's more than one earning member in a family, there's also the need to insure each breadwinner. Here's where a joint life insurance plan can be helpful. With just one insurance plan, you can get coverage for your life as well as your spouse's.

Also, a joint life policy is not just for married people. You can also co-own a policy with your parent or your child.

Sounds like quite the advantage, doesn't it? Well, before you go ahead and sign the dotted line though, you need to take a look at this list of dos and don'ts regarding joint life insurance purchase.

Joint life insurance: 2 things you should do

If you're going to get a joint life cover, check out two essential things you need to do before you make your purchase.

  • Do choose the right amount of coverage

    Different joint life insurance plans offer different amounts of coverage. Even within the same plan, the coverage options can range from Rs. 5 lakhs to Rs. 1 crore. The amount of coverage that you choose determines the cover that your policy co-owner gets. This is because in joint life covers, there are two lives insured - the primary life and the secondary life.

    And the cover for the secondary life is always offered as a percentage of the cover for the primary life. For instance, in the ABSLI Assured Savings Plan, the coverage for the secondary life is 20% of the sum assured for which the primary life is insured.

    So, if you are the primary life and you opt for a cover of Rs. 1 crore, your policy's co-owner gets 20% of that cover, which is Rs. 20 lakhs. This is why it's important to choose the right amount of coverage for yourself and by extension, your spouse, parent or child.

  • Do choose the right kind of joint life insurance

    There are joint life term plans as well as joint life savings plans. The former gives you all the benefits of a term insurance plan, which include a significant cover at affordable premiums and simple terms and conditions. On the other hand, a joint savings plan gives you all the benefits of a regular endowment plan, which include a savings component that helps you meet your life goals.

    In addition to these regular benefits, joint life covers also give you the added advantage of coverage for your spouse (or parent or child). So, before you make your purchase, choose the kind of joint life cover you need based on your family's overall needs.

Joint life insurance: 2 things you should not do

It's also important to know what you should not do when you opt for a joint life insurance policy. Here are two such mistakes to avoid.

  • Don't forget to read the terms and conditions of your policy

    The terms and conditions of a joint life insurance policy are quite different from the T&C of a single life insurance policy. There are some specific things you may need to look into before you buy a joint life cover. Here are some such terms to look out for.

    • The percentage of the sum assured that is applicable for the secondary life
    • The manner in which the benefits will be paid out in case of demise of the primary or the secondary life
    • The availability or non-availability of riders for joint life policies
  • Don't forget to inform your policy co-owner and your beneficiaries

    It's always a good idea to inform your spouse, parent or child - whoever you are taking the policy with - about the cover you've chosen, the premiums due, the benefits in store and the general features of the policy. An even better idea is to jointly take the decision to purchase the policy, so you can buy a cover that meets both your needs.

    Your beneficiaries also need to know the manner in which the benefits from the policy will be paid out. Typically, the benefit payouts happen in any of the following cases:

    • In case of the demise of the primary life insured prior to the secondary life insured
    • In case of the demise of the secondary life insured prior to the primary life insured
    • In case of the demise of both lives simultaneously

    So, don't forget to inform your beneficiaries and nominees about the terms of the payouts beforehand.


This sums up the basic checklist to refer to before you opt for a joint life cover. If it's your first time getting a joint insurance plan, remember to read up all about this kind of insurance before you make your purchase. The more you know about what you intend to buy, the better informed your decision will be.


Well, you now know the dos and don'ts of buying a joint life cover. But what if you aren't sure whether a joint cover is the right choice for your needs? Our blog can help you decide if you should get two individual policies or one joint plan.

Read it here


Worried that your spouse has no insurance cover of their own? The ABSLI Assured Savings Plan can put your worries to rest, because it offers the Joint Life Protection option. With this option, you can extend the benefit of a life cover to your spouse as well.

Plus, this plan also gives you guaranteed1 benefits coupled with loyalty additions year on year. All this, along with the flexibility to choose your premium payment term, policy term and more!

Know More

1Provided all due premiums are paid
ABSLI Assured Savings Plan (UIN: 109N134V02) is a non-participating traditional insurance plan.


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