Marriage marks the beginning of a lifelong journey for a couple. It is the conventional premise for two individuals to plan a future together. However, starting a life together has its challenges. One of the primary goals of a happy married life is achieving a sense of financial security and protection. That is why a couple needs to have a term life insurance cover. Owing to the whims and fancies of the modern lifestyle, a couple requires term life insurance that takes care of them in unforeseen circumstances. 

In the majority of Indian households, the wife is a homemaker and does not make financial decisions. It raises an important point about non-earning spouses who stay home to shoulder household responsibilities. Such spouses usually occupy the financial backseat and their contributions go unaccounted. 

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In a lot of Indian households, the men decide about matters like insurance as they are the sole breadwinners of the family. However, a non-earning spouse can opt for a stand-alone term life insurance policy. It is the most befitting way for a couple to deal with the uncertainties of the future without being burdened by unforeseen expenses. Therefore, a term life policy provides the most effective protection for couples with several cost-effective options to choose from. As married couples lay the foundation of a household, they have several expenses to manage. Nowadays, there are many term life plans available at an affordable premium too.

Importance of Term Insurance for Non-earning Spouses

In any unfortunate event that disables the earning member of the family from providing for the family, the non-earning spouse is burdened by a plethora of responsibilities. It means that they have to fill the shoes of the earning member while simultaneously shouldering their pre-existing responsibilities. At such a juncture, term life insurance is extremely useful as it helps the non-earning spouse keep up with the daily expenses and maintains a balance to the household. 

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A term life insurance policy offers several options for couples to choose from. Hence, selecting a suitable amount of coverage depends on your and your spouse’s needs. Such plans provide pay-out upon the unfortunate death of either of the two policyholders. In some cases, it also provides regular income to the pre-mentioned living members of the family. Additionally, there is also the option to choose riders such as critical illness cover, accidental death, permanent disability, dismemberment, etc.

Many policies in the market offer to issue stand-alone term life protection for non-earning spouses. For getting a stand-alone term life for a non-earning spouse, the individual needs to submit proof of their existing term life insurance. This is needed to calculate the coverage amount for the non-earning spouse. For example, if a person has a policy of Rs. 1 crore, then the non-earning spouse can get a stand-alone policy worth half this amount or up to an upper limit of Rs. 50 lakh. Another factor is that the annual income of the earning spouse should be eligible to cover both individuals.

Benefits of Term Insurance for Non-earning Spouse

There are many expenses of a married couple including monthly household expenses, children’s education, medical expenses, etc. Term life insurance helps unburden the non-earning spouse in the unfortunate event of a sudden loss of income and provides balance to steer through financial irregularities. 

• A household that depends on a homemaker can be wrecked by the sudden demise of the earning spouse. In such a case, the non-earning member must be protected by a comprehensive plan that can provide financial backup to make up for the loss and provide financial backing. 
• A temporary or permanent loss of either partner's participation in the household can also harbour trouble and significant changes to the lifestyle of the family. The stand-alone term plan comes in handy here by taking the pressure off non-earning members.
• It is a common practice for modern couples to depend on loans that are repaid over years. Usually, both partners share this burden and sail through such financial obligations together. However, in the event of a mishap, term insurance for a non-earning spouse can help in the repayment process. 
• In case the earning spouse is unable to contribute financially due to any accidental disability, most term plans ensure a waiver of premium, which in turn allows the couple to continue with the policy and stay protected.

Hence, a term plan not only provides holistic coverage for the non-earning member but also protects against farsighted problems of the family. It is a full-proof solution that prepares for whatever the future may hold, without burdening either individuals. 

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