Housewives And Life Insurance: Can They Get Covered?

Life insurance is an important financial safety net for families. While most people consider getting life insurance for the breadwinners of the family, it is also important to think about the value that a housewife brings to the home. In the event of her untimely demise, the family would not only suffer an emotional loss but also face financial distress.

Housewives can get term insurance, which offers a sum assured to the nominee in the event of the housewife's death. Term insurance for housewives is affordable, with premiums starting at Rs. 473 for a 1 Crore term insurance cover. It also offers flexibility, with the option to receive the benefits as a regular income, lump sum, or a mix of both. Additionally, there are tax benefits associated with term insurance policies.

Before purchasing term insurance for a housewife, it is essential to consider factors such as the family's expenditure habits, education plans for children, loans, and liabilities to determine the appropriate coverage amount. It is also worth noting that some life insurance companies offer special benefits for female customers, such as health checkups and cancer screenings.

Therefore, while a housewife may not have a large financial contribution to the family, her invaluable contributions in other areas make term insurance a worthwhile consideration to ensure financial stability for loved ones in the event of an unforeseen circumstance.

Term insurance for housewives: what it is and why it's important

Term insurance for housewives is a type of life insurance that offers financial protection to the family in the event of the housewife's untimely death. While a housewife may not have a large financial contribution to the household, her contributions in other areas are invaluable. A term insurance plan can guarantee financial stability for the family by offering a death benefit that could save them from financial ruin.

Housewives can and should get term insurance to protect their family's future in their absence. Term insurance for housewives is a type of life insurance where the housewife is the life insured, and the policyholder is typically the male spouse. In the event of the untimely death of the housewife, the sum assured is paid to a nominee, usually someone other than the spouse. This type of policy requires timely premium payments, just like any other term insurance policy. Additionally, the premium for a housewife is typically lower than that of a similar plan offered to a male applicant, as women are often offered preferential rates.

Term insurance for housewives is crucial for the following reasons:

• Financial protection and planning: The right term insurance plan can provide a guaranteed cover amount to help the family with expenses such as education costs and existing loans. It offers financial security and helps with financial planning by providing a corpus for the family in the absence of the housewife.
• Management of medical emergencies: With the increasing prevalence of diseases among women, such as PCOS, breast cancer, and other illnesses, term insurance can ensure that the family is financially secure in the event of the unexpected death of the housewife.
• Peace of mind: Term insurance for housewives can provide peace of mind, knowing that their family will receive financial support to maintain their standard of living and achieve their long-term goals, such as pursuing higher education or getting married.

Benefits of term insurance for housewives:

• Financial safety for the family: Term insurance guarantees financial stability by offering a death benefit that could save the family from financial ruin.
• Affordable premiums: Term insurance plans for housewives have affordable premiums, with some starting as low as Rs. 473 for a 1 Crore term insurance cover.
• Flexibility: Term insurance for housewives offers flexibility in terms of payment modes and payout options, allowing them to choose what best suits their budget and needs.
• Tax benefits: Term insurance plans offer tax benefits under prevailing tax laws, providing additional financial relief to the family.
• Benefits for children: The financial benefit from the term insurance plan can be used to secure the future of the children, including their education, marriage, and other expenses, ensuring a stress-free life.
• Long-term financial protection: Term insurance plans for housewives can be purchased for longer durations, ensuring financial protection for the family at any time.

Types of term insurance plans for housewives:

• Return of Premium Plan: This type of plan refunds the premiums paid by the policyholder if they survive the policy term.
• Increasing Term Life Insurance: This plan allows the policyholder to increase the policy coverage during the term, ideal for those whose income is expected to rise over time.
• Decreasing Term Life Insurance: This plan offers a sum assured that decreases at a set rate, based on the idea that as individuals age, their liabilities decrease, and the need for a higher sum reduces.

Term insurance for housewives is a vital financial decision that acknowledges the invaluable contributions of housewives to their families. By providing financial security in the event of unforeseen circumstances, it ensures that the family has a safety net to fall back on.

The financial coverage of the family increases when a housewife gets a term insurance plan

Housewives can and should get term insurance plans to increase their family's financial coverage. Term insurance plans offer a sum assured (life cover) to the nominee/beneficiary in case of the unforeseen death of the housewife during the policy term. Term plans provide a high life cover at an affordable premium.

Term insurance plans are beneficial for housewives as they offer financial protection to the family in case of an unfortunate event. The death benefit received by the family can help manage household responsibilities and ensure financial stability. It can also help cover important future expenses such as the children's upbringing, education, and wedding.

Additionally, term insurance plans provide flexibility by allowing customization to meet individual financial requirements. For example, the benefits can be paid as a regular income, lump sum, or a mix of both. Term insurance plans also offer disability benefits, which can provide financial support in the event of an accident that leaves the housewife disabled.

Before purchasing a term insurance plan for a housewife, it is essential to consider factors such as the family's expenditure habits, education plans for children, loans, and liabilities to determine the sufficient cover amount.

Term insurance plans offer several benefits, including the option of monthly payouts instead of a lump-sum payment. This helps the family manage the large sum of money and maintain their lifestyle. Term insurance policies also offer tax benefits under Section 80C of the Income Tax Act, and the death benefit is liable for tax exemption under Section 10(10D).

Furthermore, term insurance plans often include add-ons such as accidental death and disability benefits, which can be purchased at a nominal premium to enhance financial protection.

Term insurance for housewives: benefits and features

Term insurance for housewives is a type of life insurance that pays out a certain amount to the beneficiary in the event that the housewife passes away within the policy’s term. Term insurance policies offer a higher assured sum at a reasonable premium cost. Although a housewife may not have a large financial contribution to the family, her contributions in different areas are invaluable. Here are some of the benefits and features of term insurance for housewives:

Financial Safety for the Family

A housewife's term insurance guarantees financial stability by offering a death benefit that could save loved ones. This payment can help the family in managing financial constraints and covering important future expenses.

Affordable Premiums

The premiums for a housewife's term insurance are affordable, with some starting from as little as Rs. 473 for a 1 Crore term insurance cover. Term insurance policies, in general, have the cheapest premiums. Some insurers also offer unique premium discounts for female subscribers, making it even more affordable for them.

Flexibility

Term insurance for women offers flexibility, helping with the customisation of products according to budget needs. For example, policyholders can choose to pay premiums in a convenient mode like single, limited, or regular pay terms with monthly, annual, semi-annual, or quarterly premium payment modes. Payout options can also be selected, such as a lump sum, monthly, monthly + lump sum, or increasing monthly income.

Tax Benefits

Policyholders can claim deductions for premiums paid under Section 80C of The Income Tax Act, 1961, up to a maximum of ₹1.5 lakh per annum. The death benefit received is also liable for tax exemption under Section 10(10D).

Benefits for Children

The financial benefit from the term insurance plan for a housewife can be helpful in planning for the future of her child(ren), including marriage, higher education, and other expenses. This will guarantee a stress-free life from financial constraints for her children.

Additional Features

Some term plans come with additional features such as disability benefits or accidental death benefits. Since the aim of insurance is to provide security in the face of unforeseen events, these benefits can cover a wider range of issues.

Management of Medical Emergencies

Given the rising incidence of diseases among women, such as PCOS (polycystic ovarian syndrome), breast cancer, and other illnesses, housewives may require term insurance to guarantee their families are financially secure in the event of their unexpected death.

Financial Protection and Planning

The most suitable term insurance plan for housewives can give a guaranteed cover amount to aid nominees with expenditures such as education and existing loans. It supports financial planning by offering the beneficiary/nominee a guaranteed amount to deal with important expenses.

How to choose the right term insurance plan for a housewife

Housewives are some of the most selfless and important members of the family. They tirelessly work around the clock to ensure their family's happiness and peace. Although they may not be earning members, they are responsible for various activities that are important for a smooth household. In the unfortunate event of the untimely demise of a housewife, it would be difficult for the family members, both financially and emotionally. This is where term insurance for housewives comes into the picture, offering protection to the family in case of an eventuality.

• Make sure the cover is adequate: It is crucial to select a term insurance plan that offers the required amount of financial coverage. Review your financial plans, including savings, expenses, loans, liabilities, and future goals. As a rule of thumb, the cover amount should generally be three to five times the spouse's annual income.
• Check the Claim Settlement Ratio (CSR): The CSR is an important factor when choosing a term insurance plan. It is calculated by dividing the total number of death claims received by the insurer by the number of claims settled. Opt for an insurer with a high claim settlement percentage to increase the chances of a smooth and timely payout.
• Consider the type of term plan: There are different types of term plans available, such as Increasing Term Insurance, Decreasing Term Insurance, and Term Insurance with Return of Premium (TROP). Choose the plan that best suits your needs and financial goals, as they differ in features.
• Spouse coverage: Some term insurance plans for housewives offer coverage for the spouse, assuring financial security for the housewife in the event of the spouse's death.
• Flexibility: Look for a term insurance plan that offers flexibility in terms of payment modes and payout options. For example, you may want the option to pay premiums in a single pay, limited pay, or regular pay mode, and select a payout option such as a lump sum, monthly, or a combination of both.
• Tax benefits: Opt for a term insurance plan that offers tax benefits on the premiums paid and the benefits received, as per the prevailingsection 80C and 10(10D) of the prevailing tax laws.
• Benefits for children: Consider a term insurance plan that includes benefits for children, such as coverage for their education, marriage, and other expenses, to ensure a secure future for them.
• Additional riders: Depending on your specific needs, you may want to add riders to your term insurance plan. Common types of riders include accidental death benefit, critical illness, and disability riders, which provide additional coverage and benefits.
• Affordable premiums: Term insurance plans for housewives are known for offering affordable premiums, making them accessible to families with varying financial situations.

When choosing a term insurance plan for a housewife, it is essential to carefully review the different plans available, compare their features, and select the one that best meets your family's needs and budget.

Term insurance for housewives: what to consider before buying

Term insurance for housewives is a type of life insurance that guarantees a payout to the family in the event of the housewife's death. This type of insurance is important because, although a housewife may not be the breadwinner, her contributions to the household are invaluable, and her death would leave a huge gap. Here are some things to consider before buying term insurance for a housewife:

Family Expenses

Consider the family's financial needs and choose a sufficient sum assured to ensure financial protection. Take into account factors such as the family's expenditure habits, education plans for children, loans, and liabilities. The cover amount should generally be three to five times the spouse's annual income.

The Term of the Plan

Think about the length of the term. A shorter term may seem more efficient, but it might not provide the necessary insurance cover.

Additional Features

Some term plans come with additional features such as disability benefits or accidental death benefits. These benefits can provide coverage for a wider range of unforeseen events.

The Claim Settlement Ratio

The Claim Settlement Ratio (CSR) is an important factor when choosing a term insurance plan. It is calculated by dividing the total number of death claims received by the insurer by the number of claims settled. Choose an insurer with a high CSR to ensure a quick and smooth claim settlement process.

Current Health Condition

Consider the housewife's health and her family's medical history when deciding whether to add a health rider to the policy.

Cost-Effectiveness

Evaluate the affordability of the term insurance premium by considering the family's present and future expenses, the required policy term, and the desired sum assured. Use a term insurance calculator to help you choose a plan that fits your budget.

In conclusion, while term insurance for housewives may not be as commonly considered as insurance for the breadwinner, it is no less important. By considering the above factors, you can choose a suitable plan that will provide financial security for the family in the event of the housewife's death.

Frequently asked questions