Joint Term Life Insurance

What is Joint Term Life Insurance?

A joint term life insurance policy, like the ABSLI DigiShield Plan with Joint Life Protection, is a type of life insurance that covers two individuals under a single policy. This is typically designed for couples or partners who want to ensure their loved ones are financially protected in case of either of their deaths.

How Does Joint Term Life Insurance Work?

A joint term life insurance policy, like the ABSLI DigiShield Plan with Joint Life Protection, can be a valuable tool in your financial planning toolbox.

Here's how it works:

• Shared Coverage:
  You and your partner are both insured under a single policy. You can choose to have an equal death benefit payout for both of you, or customize the coverage amount for each person based on your specific needs and income.
• Payout Upon First Death:
  If one of you, unfortunately, passes away, the designated beneficiary (often the surviving partner or children) receives the death benefit amount. This financial cushion can help cover various expenses, such as mortgage payments, living costs, or educational expenses for children.
• Policy Termination:
  After the first death benefit is paid, the policy typically terminates. The surviving partner is no longer covered under the joint policy.

Joint Term Life Plan Example:
Purab (aged 35) and Alina (aged 30) (non-smokers) couple choose ABSLI DigiShield Plan with joint life cover for 30 years and Regular Pay option. Primary Life Insured (male) opts for a Sum Assured (SA) of Rs 1 Cr and second life cover applied is Rs 50 Lakhs.

Purab – For Sum Assured Rs. 1 Crore and Alina - For Sum Assured Rs. 50 Lakhs.

In case of death of the primary Life Insured prior to the secondary Life Insured
Sum assured on death for primary Life Insured will be paid to the secondary Life Insured and the life cover for secondary Life Insured will continue with the future premiums, if any, waived off. On the death of secondary Life Insured, before the Policy maturity date, sum assured in respect of secondary Life Insured will be paid to the Nominee and Policy will be terminated.

In case of death of secondary Life Insured prior to primary Life Insured
Sum assured in respect of secondary Life Insured will be paid to the primary Life Insured. Future premiums, if any, will be reduced from the next Policy anniversary to the premium that would have been charged at inception for only primary Life Insured at Policy inception. On the death of the primary Life Insured, before the Policy maturity date, the sum assured on death in respect of primary Life Insured will be paid to the Nominee and the Policy will be terminated.

If case of death of both the lives simultaneously
The sum assured on death in respect of the primary Life Insured as well as sum assured in respect of secondary Life Insured will be paid to the Nominee and the Policy will be terminated.

So, a joint term life insurance policy ensures, both lives are covered and your family is financially secured in case either or both the life insured passes away during the policy term.

Riders in Joint Term Life Insurance

Joint-term life insurance policies, like the ABSLI DigiShield Plan, can often be further customised by adding optional riders (additional benefits) for an additional premium. These riders can provide broader financial protection for your loved ones in various unforeseen circumstances.

Here are some commonly available riders for joint-term life insurance:

• Accidental Death Benefit Rider:
  This rider pays an additional death benefit to the designated beneficiary if the insured individuals die due to an accident. This can provide additional financial support to cover unexpected expenses arising from the sudden loss.
• Critical Illness Rider:
  This rider pays a lump sum benefit if either of the insured individuals is diagnosed with a critical illness covered under the policy, such as cancer, heart attack, or stroke. This financial assistance can help manage treatment costs and other associated expenses during a critical illness.
• Waiver of Premium Rider:
  This rider waives future premium payments if one of the insured individuals becomes disabled and unable to work. This ensures your policy remains active and continues to provide coverage for the surviving partner without any financial burden. The ABSLI DigiShield Plan offers a range of riders, which enables you to widen the coverage.

Types of Joint Term Life Insurance Policies

While there's technically only one type of joint term life insurance policy, there are different plan options within that category that cater to various needs and financial situations.

The ABSLI DigiShield Plan offers several plan options to provide flexibility and cater to diverse needs. Here are some common types of joint term life insurance plan options:

• Level Cover Option:
  This option provides a fixed death benefit amount throughout the policy term, regardless of when the death occurs. This ensures a consistent financial payout to your beneficiaries in case of either your or your partner's passing.
• Increasing Cover Option:
  This option allows the death benefit amount to increase over time, often at a predetermined rate, keeping pace with inflation or rising income. This can help ensure your beneficiaries receive a sufficient payout even if the value of money decreases over time.
• Sum Assured Reduction Option:
  This option offers a decreasing death benefit amount over the policy term. This can be suitable if your financial needs decrease over time, such as after your mortgage is paid off or your children become financially independent.

Who should get a Joint Term Life Insurance Policy?

Persona	Description	Why a Joint Term Life Insurance Policy Might be Beneficial
Young Married Couple	A couple in their 20s or 30s, starting out in their careers and potentially with a young family.	- Cost-effective: Typically lower premiums compared to individual policies, especially for healthy couples. - Financial Security: Provides peace of mind knowing their young family will be financially protected if one of them passes away unexpectedly.
Dual-Income Household	A couple where both partners contribute financially to the household.	- Income Protection: Ensures the surviving partner can maintain their financial stability and lifestyle, if one of the partners passes away. - Debt Repayment: Sum assured can help pay off debts like a mortgage or home loan, car loan, easing the financial burden on the surviving partner.
Blended Family	A couple with children from previous relationships.	- Estate Planning: Helps ensure financial security for all children involved, regardless of their biological parent. - Reduced Uncertainty: Provides clarity and reduces potential conflicts regarding financial support for the children in case of one partner's passing.
Couples with Significant Age Gap	A couple with a considerable age difference.	- Level Coverage: Ensures a consistent death benefit payout regardless of which partner passes away first, addressing potential financial vulnerabilities due to the age gap. - Flexibility: Some plans allow for customszing the death benefit amount for each partner to better reflect their individual needs.

How to Choose the Right Joint Term Life Insurance Policy?

Choosing the right joint-term life insurance policy involves careful consideration of several factors:

1. Assess Your Needs:

• Coverage amount: Determine the appropriate death benefit amount to ensure your loved ones have sufficient financial support to cover expenses and maintain their standard of living.
• Policy term: Choose a policy term that aligns with your financial goals and protection needs. Consider factors like mortgage payoff timeline, child education needs, and retirement plans.
• Riders: Evaluate if additional riders like accidental death benefit or critical illness coverage are necessary based on your individual risk factors and financial situation.

2. Compare Different Plans:

• Research various joint term life insurance plan options. Consider your family situation, total household income, inflation, debt, if any, etc.
• Compare plan features and benefits, including coverage options, riders, claim settlement ratios, and exclusions.
• Pay close attention to premium costs and ensure they fit comfortably within your budget.

3. Consider these additional points:

• Joint life vs. individual policies: Weigh the cost-effectiveness and convenience of a joint policy against the potential flexibility of individual policies.
• Health factors: Be honest about your and your partner's health history during the application process to avoid any complications or premium adjustments.
• Seek professional guidance: Consulting a financial advisor can help you understand complex insurance concepts, navigate different plans, and choose the one that best suits your specific needs and financial goals. The ABSLI DigiShield Plan offers a comprehensive joint life insurance option with various plan choices, riders, and flexibility. Exploring the plan details and consulting with our representatives can provide valuable insights to help you make an informed decision.

Difference Between Joint Term Life and Two Single Term Life Plan

Feature	Joint Term Life Insurance	Regular Term Life Insurance
Number of insured individuals	Two	One
Coverage option	Covers two people (married couple or partners)	Covers only the insured individual
Premium payment	Single premium or two individual premiums	Individual premium
Cost-effectiveness	Potentially cheaper for two individuals	Two different policies for two different individuals