Joint Term Insurance Plan for Husband and Wife | Buy Spouse Term Plan in 2026

Written by : Knowledge Centre Team

2026-02-17

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As the name suggests, a spouse term insurance plan allows you to include your partner/spouse under your term plan coverage. This way, the same life insurance policy will protect both you and your partner against life’s uncertainties. Moreover, a spouse term insurance plan is a tailor-made life protection instrument not only for working couples but also for those where one spouse is a homemaker.

The financial protection of a spouse's term insurance plan is primarily useful to cover non-working partners, who cannot opt for a term plan easily on their own. That said, having spouse term insurance cover makes it easier to track premium payments, policy benefits and claim settlements under a single policy, instead of two separate plans. Here, we will look at various features and benefits of spouse term plans to help you make an informed decision.

Key Takeaways

A spouse term insurance plan covers both partners under a single policy
This term insurance plan is more affordable than purchasing individual policies for each partner
You can personalise your coverage based on your specific financial needs and goals, including expenses, debts, and future plans like children’s education, ensuring adequate protection for both partners
A spouse term insurance plan comes with tax-saving opportunities under Section 80C, and the benefits paid out upon the death of either partner are tax-exempt under Section 10(10D) of the Income Tax Act of 1961
These plans can be enhanced with riders such as critical illness, accidental death, or permanent disability coverage, offering comprehensive protection beyond the basic death benefit

What is a Spouse Term Insurance Policy?

As the name suggests, a spouse term insurance plan provides the protection of life insurance coverage to both partners (husband and wife) under a single policy. A spouse term insurance plan offers various features and benefits including tax-saving benefits, discounts on spousal premium payments, long-term policy tenure and regular monthly income payout to the surviving spouse.

Under a spouse term insurance plan, you can also opt for additional protection through critical illnesses, permanent disability, accidental death and dismemberment riders.

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How Does a Spouse Term Insurance Plan Work?

A spouse term insurance plan provides financial protection for your partner in the event of an unfortunate loss. It’s a life insurance policy where you, as the policyholder, can cover the life of your spouse for a specific term, offering peace of mind. Here's how it typically works:

Choosing the Coverage: You’ll select a coverage amount based on your financial goals and the needs of your spouse. This might include daily expenses, paying off debts, or future savings goals like children’s education.

Term Duration: The policy is set for a fixed term. The term length will depend on factors like your spouse’s age, health, and how long you want the coverage to last.

Premium Payments: You or your spouse will pay monthly or annual premiums for the term of the policy. The premium depends on factors such as the coverage level, your spouse’s health, and your age.

Benefit Payout: If the insured spouse passes away within the term of the policy, the beneficiary will receive the agreed-upon sum to cover financial responsibilities and living expenses.

End of the Term: If the term insurance for both husband and wife expires and no claim is made, the coverage ends with no payout, but you may have the option to renew or convert the policy into a permanent plan.

How will a Term Life Insurance Plan Benefit

Key Features and Benefits of Spouse Term Insurance Plans

While buying a spouse term policy, the primary policyholder needs to be an earning member of the family. Mostly, the maximum sum assured applicable under a spouse term insurance is either a specific percentage or a fixed amount of the primary policyholder’s applicable sum assured.

Here are the key features of a spouse term insurance plan:

Joint Coverage: Spouse term insurance plans streamline the insurance process and guarantee complete protection for the marriage by covering both spouses under a single policy.
Adaptable Term Choices: Couples can select the length of time that best suits their needs from a variety of term lengths that these plans normally offer to accommodate their financial goals and timeframes.
Death Benefit: The surviving spouse receives the death benefit if either spouse passes away within the policy's term, giving them financial help during a challenging time.
Superior Cost-Effectiveness: In most cases, a spouse term insurance plan costs comparatively less than purchasing two separate term insurance policies. Plans for spouse term insurance have affordable premiums, which makes them a more suitable choice for couples than getting individual policies for each partner.
Personalised Protection: To ensure their loved ones are adequately protected, couples can choose the coverage amount for their spouse's term insurance based on factors such as income, financial obligations, and future needs.
Options for Convertibility: Certain plans might provide the option to convert a term insurance policy into a permanent life insurance policy, giving investors long-term protection.
Tax Incentives: The capital amount of a consolidated term life insurance policy, as well as the benefits provided by the plan, are deductible for each of the parties under the Income Tax Act of 1961. Section 80C offers tax benefits to couples, while the amount received upon the demise of either partner is tax-exempt under Section 10 (10D) of the Act.
Term Plan Premium Waiver in Case of Death: Buying joint-term insurance allows couples to save money on future rates. The surviving spouse will get the guaranteed lump sum as a death benefit and won't have to pay any further premiums to keep the life insurance coverage if the principal insured passes away within the policy's term.
Financial Security of Children: The children will be the beneficiaries and receive the guaranteed amount in the form of a lump sum payment or a fixed monthly income if the parents pass away within the policy period. Plans for spouse term insurance would help the dependents meet their financial obligations and secure their future financial stability.

When Should You Buy a Spouse Term Insurance For Husband and Wife?

Buying a term plan with spouse cover is ideal for nuclear families, wherein both spouses are working and have financial debts to pay. With term insurance for husband and wife, the policyholders can protect their family against the death and disability of either earning member while lightening the financial burden with the help of the insurance payout. Young parents having outstanding loans should also opt for a spouse term life insurance policy to make sure that their children remain protected against any future mishaps.

The sum assured payable under a spouse term insurance plan is calculated after assessing the age, annual income, health, and lifestyle of the primary policyholder. For the spouse or the secondary policyholder, the insurance company may only ask for the verification of age and the highest education. There may also be no need to conduct any medical test for life insurance, in case of a spouse or secondary life assured. The employment status of the secondary life assured or the spouse does not matter when buying the spouse's term insurance plan.

Common Myths About Spouse Term Insurance Plans

When it comes to spouse term insurance plans, there are plenty of misconceptions that can confuse people. Let’s clear up some of the most common myths:

It's Only for the Breadwinner: A common myth is that only the primary earner needs life insurance. However, a spouse who may not be working or earning a full income still provides essential support to the family, whether through childcare, household management, or emotional support. A spouse term insurance plan can provide much-needed financial stability in case something happens to one of them.
Term Life Insurance is Expensive: Many believe that term insurance is too expensive for their budget, but it’s often far more affordable than people expect, especially when compared to permanent life insurance. Since term plans only cover a set period, the premiums tend to be much lower while still offering significant coverage.
The Payout Isn't Worth It: Some people think the payout won’t be substantial enough to make a difference. In reality, you can customise the coverage to meet your family’s specific needs. From covering mortgage payments to providing for children's education, the payout can be a significant financial cushion during a difficult time.
The Policy Only Covers Death: While term insurance is generally for life coverage, many policies also offer additional riders or benefits, such as critical illness coverage or an accidental death benefit. So, it’s important to review your policy options to ensure you're getting the full range of protection.
I’m Too Young or Healthy for Life Insurance: It’s easy to assume that life insurance is only for older individuals or those with health issues. But the benefits of spouse term insurance plans when you're younger and healthier are higher. You can lock in lower premiums and ensure your family’s financial security from the start.

By debunking these myths, you can better understand the value of a spouse term insurance plan and how it can be a smart investment in your family’s future, no matter your life stage or circumstances.

Wrapping Up

Securing a joint policy is a powerful way to ensure that the "invisible" economic contribution of a homemaker or the secondary income of a working partner is never overlooked. By consolidating protection into a single plan, couples can achieve a comprehensive safety net that covers debts, education, and daily living expenses at a lower cost than individual alternatives. Ultimately, this approach turns insurance from a solitary task into a shared pillar of family stability, providing both partners with the confidence that their future is protected together.

Our iSelect Smart360 Term Plan provides term insurance protection for spouses. Under this plan, you can opt for a life cover extending over a lifetime and also enhance the coverage through additional in-built benefits such as an Accidental Death Benefit, an Accidental Total & Permanent Disability Benefit, and a Child Support Benefit.

Glossary

Dismemberment Riders: They cover the loss or impairment of body parts or functions due to an accident
Premium Waiver: It allows policyholders to stop paying premiums if they become disabled and unable to work
Critical Illness Insurance: Provides a lump-sum payment for medical costs if the insured is diagnosed with a specified serious illness
Secondary Life Assured: This is typically the spouse whose coverage is often linked to the primary earner's policy terms
Child Support Benefit: An in-built plan feature designed to provide financial payout to secure the children's future needs

FAQs

In insurance, a "spouse" typically refers to the policyholder's legally married partner. Depending on the insurance company's policies and the jurisdiction's legal definitions, the term can also include common-law partners or domestic partners.

Yes, both partners can take separate term plans. Alternatively, they can opt for a spouse term life insurance option that covers both partners under a single policy.

For couples, our iSelect Smart360 Term Plan offers comprehensive term insurance protection, including lifelong coverage and additional benefits like Accidental Death, Total & Permanent Disability, and Child Support.

Yes, a joint-term life insurance plan is a cost-effective alternative that provides insurance coverage for two people by paying a single payment.

Yes, a non-working spouse can obtain coverage in India, though they generally cannot buy a high-value term plan independently without income proof. Instead, they can be included in a spouse term insurance plan where the earning partner is the primary life assured. The coverage amount for the homemaker is typically capped at a percentage (often 50%) of the working spouse’s sum assured.

Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.