Which Term Insurance is Right for Couples in 2025?

What is a term insurance plan for couples?

A term insurance policy for couples provides financial protection to both partners, helping secure their family’s future at affordable prices. In the unfortunate event of one partner’s death, the surviving spouse receives the sum assured.

Couples can choose from three options: individual term plans, joint life cover, or spouse cover, depending on their specific needs. Each option offers different benefits regarding coverage, flexibility, and how the claim is paid, making it essential to choose wisely.

Protecting your family’s financial future is essential, and a term plan for couples makes it easier. Such plans offer affordable life cover for both partners under one joint policy or through separate individual plans. They help ensure your loved ones aren’t left struggling if something unexpected happens.

Whether you want the simplicity of a joint plan or the flexibility of separate policies, choosing the right option gives you peace of mind. At Ditto, our experts assist couples in balancing cost, coverage, and long-term security so you can confidently move forward.

Still unsure? Book a free call at Ditto and let our experts help you make a clear, confident decision tailored to your family's future.

Quick Note:

Joint life term plans in India are only available to legally married couples, and a valid marriage certificate is usually required. Unmarried or live-in partners aren’t eligible. Even for individual plans, nominating a boyfriend or girlfriend as a beneficiary is generally forbidden without a legal relationship.

What are the types of Couple term insurance?

There are three primary types of term insurance plans. Let's see how each aligns with your coverage needs, financial goals, and lifestyle:

Individual Term Plans: Each spouse purchases a separate term policy with customized coverages, nominees, tenure, and riders to individual needs. This is a flexible option, allowing maximum sum assured and separate payouts.

For example, if one spouse passes away, the surviving spouse's policy remains active, ensuring continued coverage and a separate payout if needed later.

Joint Life Term Plans: A single term plan covers both partners. In joint life plans (like PNB Mera Term, Aditya Birla DigiShield), both spouses are covered from the start. When one dies, their sum assured is paid out, and the surviving spouse continues with their own cover (sometimes equal to, or a fixed % of, the primary’s SA). Premiums may be reduced or completely waived.
Spouse Cover Term Plans: These are cover continuation plans like Edelweiss Better Half, HDFC C2P Supreme and SBI Better Half. Spouse cover activates only after the primary policyholder dies. The nominee gets the full sum assured, and the spouse gets a new cover (typically 25–50% of the base SA, often capped at ₹25L–₹1 Cr) . If the spouse dies first, this benefit is lost.

Bottom Line: The key difference between a standard individual term plan and a joint life term plan is that coverage rules for the second life vary widely in joint policies. In some cases, the survivor does indeed lose protection after the first payout, but in others (true joint life), the spouse continues to be covered without needing to buy a new plan.

Ditto’s take on term plans for couples

At Ditto, we recommend individual term plans instead of joint life plans in most cases, especially when both spouses have independent income and financial lives. This approach offers greater flexibility and personalization, such as:

Each gets their own coverage with tailored payouts
There is the ability to adjust as health, income, or life goals evolve

Thus, the policy stays unaffected if one partner's circumstances change, ensuring protection remains strong for both.

Joint life term plans seem appealing for their cost-savings and simplicity, and are often priced 25–30% lower than two separate policies. However, they come with trade-offs:

You get just one death payout, and the policy frequently ends with the first claim, potentially leaving the surviving partner unprotected or needing a pricier new policy.
Changes like divorce or diverging financial needs can make managing a joint plan difficult.

Note:Canceling the term policy may be the only option in divorce. This can lead to higher premiums later. There’s also a risk of declining the application due to older age at separation.

Single plan limits the no of nominees that can be kept, with separate plans each spouse can keep their own nominees, which may include their own parents, siblings and their spouses (with clear % assigned)
Only one person in the policy receives tax benefits.
Limitations w.r.t sum assured, riders options like critical illness, waiver of premium for the secondary life assured.
Only a few insurers offer joint plans, reducing choice scope and customization.

Ditto’s verdict: Individual policies deliver sustainable protection and long-term adaptability. They give each partner peace of mind and control so you're prepared for any future, without sacrificing flexibility or financial logic.

If the spouse is a housewife, many insurers now offer term plans using the husband’s income, with higher cover, flexible terms, added riders, premium discounts for women, and nominee options. Some popular products include HDFC C2P Supreme, Axis Max Life Smart Term Plan Plus, and more details here.

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What are some popular term plans for couples in India?

Insurers in India offer two types of joint life insurance:

Cover Continuation: The spouse's cover begins only after the primary policyholder dies
True Joint Life: Both partners are covered right from the start.

Here are some popular term plans for couples as of 2025:

Before we discuss the list, here’s how we decide what plans to feature.

At Ditto, every term plan goes through our six-point evaluation framework. It doesn’t mean these are the only good plans, but that they stand out after being scored across all six pillars.

You can learn more about how we evaluate term insurance plans here.

Insurer / Plan	Type of Cover	Spouse SA (Sum Assured)	Premium Rules / Waivers	Special Conditions
Edelweiss Zindagi Protect Plus (Better Half Benefit)	Cover continuation (starts after the primary’s death)	50% of base SA (₹25L–₹1 Cr)	Extra premium; no further premiums after the primary’s death	- Must be married with ≤10 yrs age gap - lapses if spouse dies first or both die together
SBI Smart Shield Plus (Better Half Benefit)	Cover continuation (starts after the primary’s death)	Lower of ₹25L or 50% of SA	Extra premium; premiums stop after the primary’s death	-Must be married; ≤10 yrs age gap - not payable if both die together
PNB Mera Term Plan Plus (Spouse Coverage)	True joint life (both covered from the start)	Up to 100% of primary SA; for non-earning spouse, max ₹50L	Extra premium; spouse premiums waived if primary dies or faces CI/Disability	- First life SA ≥₹50L; spouse always second life; if both die together, both SAs paid
Aditya Birla DigiShield – Joint Life	Joint life style (both covered from start)	50% of Primary SA	10% discount on spouse premium; if primary dies first → spouse cover continues with no premiums	-No riders allowed -terminal illness cover applies to both
IndiaFirst Super Protection Plan (Joint Life Option)	Joint life style (both covered from the start)	An additional 50% of primary SA (max ₹1 Cr)	Extra premium; 2% discount on spouse premium; waiver only for primary	- On one death, the other continues covered -both lives are protected under one plan
HDFC C2P Supreme Spouse Cover Option	Cover continuation (starts after the primary’s death)	Up to 50% of base SA (max ₹1 Cr)	Extra premium; future premiums waived after the primary’s death	Must be married; ≤10 yrs age gap; base SA ≥₹50L; both must be graduates; spouse medicals required; not payable if both die together

The ideal joint life plans here are PNB Mera Term Plan Plus, Aditya Birla DigiShield – Joint Life, and IndiaFirst Super Protection Plan, since both partner’s lives are covered from inception. Among these, PNB Mera Term Plan Plus is the most flexible (spouse up to 100% SA, with multiple waiver triggers like ATPD & Critical illness), while Aditya Birla and IndiaFirst offer solid but fixed spouse cover at 50% of the primary SA with decent limits (up to ₹1 Cr).

Case Studies around different term options for a couple

1. Individual vs Spouse cover

Case Study – HDFC C2P Supreme

Scenario 1: Separate Individual Policies till age 65

For a Male (32 years old, non-smoker) and a Sum Insured of ₹1 crore, the annual premium is ₹18,114
For a Female (30 years old, non-smoker) and a Sum Insured of ₹50 lakh, the annual premium is ₹9,319
Total Premium (both policies) is ₹27,433 per year

Scenario 2: Joint Cover with Spouse Option in the same plan

Primary Life Assured (male, 32 years old) with Sum Assured of ₹1 crore
Spouse Cover (female, 30 years old) with Sum Assured of ₹50 lakh (50% of base SA)
Total Annual Premium (combined) is ₹19,020

Comparison & Insights:

Premium saving: ₹27,433 – ₹19,020 = ₹8,413 less per year (≈30% cheaper).
Coverage difference:

Individual Plans: Both lives covered from day one, each with independent death benefits.
Spouse Cover Option: Spouse (50L) only gets covered if the primary life dies first. If a spouse dies before the primary, no benefit is paid for the spouse's cover.

2. Individual vs True Joint Life

Case Study – PNB Mera Term Plan Plus

Scenario 1: Separate Individual Policies till age 65 and a Sum Insured of ₹1 crore

For a Male (30 years old, non-smoker), the annual premium is ₹14,986
For a Female (28 years old , non-smoker), the annual premium is ₹11,682
Total Premium (both policies) is ₹26,668 per year

Scenario 2:

Joint Life (Spouse Coverage under Same Policy) till age 65 and for Sum Insured of ₹1 crore, for a Male( 30 years old) and Female (28 years old), the Annual Premium (with GST) is ₹25,017

Comparison & Insights:

Premium saving: ₹26,668 – ₹25,017 = ₹1,651 less per year.
Coverage structure:

Individual Plans: Both lives are covered independently, with separate policies and full benefits.
Joint Life: Both lives are covered under one contract. If one dies, the other continues with cover. Moreover, premium waivers apply if the primary life suffers death, terminal illness, total disability, or critical illness.

Key Takeaway:

PNB’s Joint Life structure offers almost the same coverage as two separate policies but at a slightly lower premium, with the added advantage of premium waivers linked to the primary life. This makes it more efficient for married couples who want both partners covered under one plan. However, riders like Waiver of Premium, Terminal Illness Benefit, and Accelerated Critical Illness Benefit apply only to the First Life (policyholder/primary life).

Inclusions & Exclusions in Term Plans for Couples

Here’s a quick comparison of what causes of death are included and excluded in couple term plans:

Inclusions	Exclusions
Natural Death	Suicide within the first year of policy
Death due to Terminal or Critical Illness	Death due to participation in undisclosed hazardous or extreme sports
Accidental Death	Death due to pre-existing diseases/medical history not disclosed
Death due to Natural Disasters	Death due to intoxication or substance abuse
Pandemic-related Deaths	Death due to self-inflicted injuries and Homicide where nominee is involved

Remember:

While the terms and conditions are generally consistent, the payout structure may vary depending on the chosen plan. Additionally, riders such as Terminal Illness Benefit or Accidental Death Benefit broaden the term policy coverage you opt to purchase.

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Term Insurance for Couples: Key Takeaways

Choosing the right term insurance plan as a couple can significantly impact your financial future. While joint plans offer simplicity, individual policies may provide more flexibility in the long run.

Key Takeaways:

Joint Term Plan: Offers cost savings and shared coverage, but often limits spouse benefits and rider applicability to the primary life.
Individual Term Plan: Provides independent, flexible protection for partners with full benefits and separate nominees.
Choosing the right option depends on your life stage, financial responsibilities, and long-term goals.

Still unsure? Book a free call at Ditto and let our experts help you make a clear, confident decision tailored to your family's future.

FAQs

What happens to the policy after the first death?

It depends; some plans continue coverage with waived premiums, while others terminate unless designed as survivorship or separate plans.

Can I customize the death benefit amount for each person?

Yes. Many joint plans allow varying coverage; your spouse may be covered at 50% or even 100% of the primary sum assured, subject to monetary limits of ₹50Lakhs to 1 crore.

Is divorce a problem for joint policies?

In case of divorce, the joint policy may need to be cancelled.

Do joint term plans offer tax benefits?

Yes, premiums are deductible under Section 80C of the old regime, but only for the primary life assured/policy holder, and death benefits are tax-exempt under Section 10(10D) for both spouses.