Term Insurance Plan for Housewife

In Indian households, it is traditionally accepted that household work is a woman's job. Husbands often overlook the fact that homemakers also play an essential role in the household and don't buy Term Insurance For Housewifes. The difference between working husbands and housewifes isn't much.

However, the working husband always gets appreciation due to being the sole breadwinner, and homemakers work in the shadows and hardly get an appreciation for fulfilling responsibilities.Housewifes play an equally important role in the family by performing daily household chores such as cooking, cleaning, caring for family members, budgeting, buying groceries, etc.

Undoubtedly, their absence can give rise to both emotional and financial struggles. Hence, term insurance for housewifes is a must-buy product for the female counterparts of the household.

What is Term Insurance for Housewife?

Term Insurance for housewife is a life insurance product specifically designed for Indian homemakers. It provides a guaranteed payout to the nominee in the unfortunate event of the housewife’s death. However, a guaranteed payout is provided against the premium paid towards the insurer by the policyholder. This plan is widely known for its comprehensive coverage at low premiums. In addition, policyholders also get the flexibility to customize the plan with add-on riders based on their financial needs.

Benefits of Purchasing Term Insurance for Housewifes

Here we've listed some of the benefits of the term insurance plan for housewifes:

1. Income Tax Benefits

   If you hold term insurance for a housewife, you'll get the following tax benefits.

   • Section 80C - The premium paid towards the insurance plan will be eligible for tax perks based on Section 80C of the Income Tax Act, 1961, up to ₹1,50,000.
   • Section 10(10D) - The coverage obtained from the term plan, including death, surviving, or maturity benefits will be eligible for the tax exemption benefit under Section 10(10D) of the Income Tax Act, 1961.

2. Help accomplish future goals

   The family member or beneficiary can use the payouts from the term insurance for the housewife to fulfil future goals, such as starting a business, buying assets and clearing off debts and other liabilities. However, the coverage amount can also be used in different sorts of financial investment options to create wealth in the long term.

3. Secure child's future

   The most beneficial factor of buying the term plan for a housewife is the payout can help pay for her child's higher education, plan for their marriage, Etc. It'll ensure a secure life without experiencing a financial crisis in the long-term.

4. Long-term financial protection

   Term insurance is a long-term investment; policyholders can select the right term for their needs. However, the term plan for a housewife can be bought for a longer tenure to ensure financial protection for the family at any time.

Types of Term Insurance for Housewives

There are four types of term insurance plans for housewifes. They can select the term insurance plan that best fits an individual family's budget and requirements.

How Does Term Insurance for Housewife work?

Although housewifes are not earning members, even so, she is responsible for various household chores. Without the assistance of homemakers, life at home becomes complicated for every family member. Keeping this in mind, insurance providers came up with term insurance plans for housewifes. Since term insurance cannot be bought by someone who does not generate income, term insurance for housewifes comes with a few eligibility conditions. Let us look into them.

Why Should buy Term Insurance For Housewifes?

Although housewifes are not earning members, even so, she is responsible for various household chores. However, the uncertain demise of a housewife can trigger the whole household mentally, physically, or financially. Therefore, her importance is valued as equal to an earning family member, and buying a term insurance plan for a housewife is mandatory to ensure extra financial security. Here are the following key features of buying term insurance for housewife.

1. Financial Security For Your Family

   Term insurance for homemakers ensures financial security for the insured's family in case of the homemaker's unfortunate demise. The sum assured paid out to the family will help them survive financially. It doesn't matter if you earn or not; insurance is a must-have in such cases.

2. High Sum Assured at Affordable Premiums

   Term insurance offers the insured value for money, is quite affordable and is best when bought in the early years of life as the premiums tend to increase with age. Since no component is called 'investment', the entire premium amount the insured pays goes towards the sum assured.

3. Option to Add Riders

   The insurance policy or plan bought by the insured might not have everything they are looking for. Thus, an option to add a rider or add-on covers is generally available to the insured. Some riders that can be added are critical illness riders, term riders, childcare benefits, etc. With the increasing no. of diseases among women, such as PCOS, PCOD, breast cancer and more, a critical illness will help the insured financially in dealing with the disease, and they can entirely focus on recovering.

4. Tax Exemption

   Term insurance can give the insured tax benefits and help with further savings. The policyholder can claim tax exemption under section 80C up to a limit of 1.5 lakhs and section 80D for critical illness riders up to 25,000.

Things to Consider Before Buying a Term Insurance for Housewife

Here, we've listed some factors that you must look into before choosing a term insurance plan for housewifes:

• Always estimate the family's financial needs and choose a sufficient sum assured to ensure financial protection for the family at any time.
• According to the general thumb rule, you can calculate the sum assured amount online or consider the cover amount to be 8 to 10 times one's annual income.
• Before opting for a term insurance plan for a housewife, consider her health condition and her family medical history. It helps you to determine if a health rider is essential.
• To obtain the financial benefits when the time comes, compare the insurer's claim settlement ratio so that your dependents do not suffer.

Conclusion

A homemaker works day in and day out. The amount of hard work and effort put in by this single person amounts to multiple people working. While no one can replace her, having term insurance can financially help the family members and people dependent on her. There are only a few insurance policies available for housewives. Thus, opting for insurance that is suitable and budget-friendly is important. It is necessary to read through the terms of the policy before buying it.