Some people may find it easy to be housewives. Nonetheless, a housewife’s work is just as vital as that of any other family member who makes a living. Although a housewife adds value to the home by taking care of the whole family, they are seldom given the respect they deserve in our culture. Therefore, it is imperative that other family members always make sure she is safe. 

Typically, the earning partner who works secures the non-working spouse and family’s financial security by obtaining a life insurance policy for themselves. Should the working partner pass away, the housewife would receive the benefit of the insurance policy. This could assist her reach her financial goals in life as well as guarantee her financial security for the years to come. It appears that this completes the financial preparation for a stay-at-home wife. One overlooks the contribution housewives make to the family’s financial stability. Have you ever considered what may happen if the homemaker were to suddenly disappear from the picture of the house? Without a doubt, the family would experience emotional anguish if the homemaker were to leave. However, since all of her responsibilities would subsequently be handled by a professional, it can also have a negative financial impact. In this article, we will understand the benefits of the term insurance plan for housewives: 

What is a Term Insurance Policy for Housewives? 

A Housewife Term Insurance policy is a concept in which a homemaker or housewife acquires a term insurance policy to provide financial support to her family in the event of her untimely death. A Housewife term policy offers your family a death benefit or sum assured. This cash might be paid out in one big sum or at regular periods. Most significantly, your insurance policy’s death benefit enables your family to continue paying expenses such as food, school or college tuition, and any outstanding bills or loans.

Reasons to Invest in Term Plans for Housewives

Helps to provide financial security: There are many benefits of term insurance that housewives will get such as getting financial security. Term Insurance plan ensures that your family does not suffer financially during difficult times. It can assist you in meeting both your short-term and long-term financial needs. It ensures financial security for your loved ones.

Helps to Increase your savings and create wealth: Investing in a term insurance plan for housewives can help you save money while also boosting your wealth. Certain insurance plans allow you to invest in endowment plans, money-back plans, and other similar options. 

Riders: Insurers give policyholders add-on covers or riders to increase their coverage. So, if you buy a term plan for housewives, you can add riders to ensure enough protection that further increases the benefits of term insurance for them. Few riders can take are-critical illness and accidental death benefit riders. However, riders are optional and come at an additional expense.

Provides key milestone funds: One such benefits of term insurance for housewives is that it also provides survival benefits during certain policy years. The funds you earn from this can be utilized for a variety of life events, including your child’s education, marriage, and so on. As a result, if you want such guaranteed payouts to help your family financially, you should definitely invest in a term insurance plan. 

Retirement Funds: Investing in term insurance for housewives can help you save more money for retirement. It will serve as a future pension plan, providing you with financial security in your old age. With this insurance plan, you won’t have to rely on others for financial support.

Tax benefits: Another benefit of term insurance made for housewives is the tax benefits one would get. Any premium payments made for your Housewife’s Term Life Insurance policy are tax deductible under Section 80C of the Income Tax Act. You and your family can take advantage of these tax benefits with your Term Life Insurance coverage. 

How do Term Insurance Policies for Housewives Work?

Much like a conventional term insurance plan, a term plan for housewives has a few eligibility conditions that you need to consider:

Health: Term insurance underwriters assess the applicant’s medical history (in this case, a housewife). When applying for a term plan, you need to inform them about any previous surgeries, hospitalizations, or lifestyle conditions such as blood pressure, diabetes, asthma, thyroid, cholesterol, and so on. Based on this information, you will get to know the premium amount you will pay. 

Income: When estimating term insurance coverage, insurers frequently employ the multiplier approach. Insurers consider age while determining coverage. For instance, if you are a 35-year-old with an annual salary of ₹10 lakhs, seek term insurance, the maximum coverage she could get is ₹2.5 crore. If housewives do not have a specific source of income, their spouse’s salary is taken into account when calculating coverage.

Education: Term insurance companies often feel that the higher an applicant’s educational qualification, the greater their income potential and, hence, their ability to pay premiums. In the case of standard-term insurance policies for both salaried and non-salaried applicants, insurers offer plans to people who have completed at least Class 10th.

Lifestyle and habits: Term insurance underwriters examine the applicant’s lifestyle, habits, and hobbies to determine the risk factor. For instance, riskier hobbies such as skydiving can result in higher premiums due to the increased chance of permanent injury or untimely death.

Profession: Again, because women are heavily involved in home activities, the insurance underwriting team considers the spouse’s vocational category when determining whether or not to extend a policy. For example, if an applicant is in the army or works in a hazardous factory, the chances that they/their spouses will acquire the benefit of a term insurance coverage are relatively slim.

Things to Consider When Investing in a Term Plan for Housewives

The following factors should be looked at before purchasing term insurance for housewives:

• There are fewer policies accessible for housewives, so it is important to compare all of the insurance policy products offered by different companies.
• Examine the eligibility requirements and read all of the insurance terms and conditions carefully.
• Check for premium quotes
• Choose an economic policy that meets your coverage needs.

Conclusion

As you are aware, women, particularly housewives, face significant challenges. As a result, it is critical that they have financial stability and independence. If you are a housewife, you should consider investing in a good insurance plan to get the benefits of term insurance to help support your family’s financial needs.