FAQs 116 views November 27, 2018

It must be understood that the purpose of buying term insurance is to make up for the loss of income in the event of the sudden demise of the family’s breadwinner. However, joint term insurance is usually preferred by couples in which both are working. If the surviving partner earns well and is not financially dependent on the other, then the concept of paying for joint term insurance, to avail the benefit of premium waiver, is futile.

Also, some people prefer to buy joint term life insurance plans as the premium rates are lower compared to level term insurance plans. However, saving on premiums to such a meager extent does not pay in the long run. In addition, if one of the partners loses interest in the policy, then the premiums would still continue else the policy would lapse. In the event of an unfortunate event like divorce, where the couple’s interests are no longer focused on the same issue of securing the financial cover, then they either have to redeem the plan or wait for it to lapse.

With disadvantages far exceeding its benefits, it is deemed better to buy two separate policies depending on the amount of life cover required and policy periods for which they would like to pay. The flexibility inherent in level term insurance plans helps plan according to the necessary life cover required at different stages of one’s life, thus, also securing the lives of dependent(s) accordingly.