Budget 2023: Financial cushion for women and criticality of homemaker plans

You know how the saying goes, behind every successful household is a homemaker. So, then, why do we fail to recognize their value addition to our lives?

During her budget 2023 speech, FM minister Nirmala Sitharam highlighted the importance of financial independence for women. She also shared that for the economic empowerment of women under the Deendayal Antyodaya Yojana National Rural Livelihood Mission, 81 lakh self-help groups have been created by mobilizing rural women.

While there have been many initiatives in the last few years to empower women economically, homemakers remain the most overlooked section in society. In 2021, a three-judge bench of the Supreme Court of India observed that the labor, services, and sacrifices of homemakers contribute in a very real way to the economic condition of the family, and the economy of the nation; even though it may have been traditionally excluded from economic analyses.

Despite this push and encouragement from government bodies, many Indian households still undervalue the homemakers’ contributions. The traditional understanding of economic contributions has been limited to financial outputs. As a result, the value addition by homemakers has often been vastly underestimated. Until very recently, housewives could only opt for coverage under a term plan based on their earning spouse's existing term plan and income. But things are finally starting to look up now. Protection plans like homemaker insurance are widely available in the market, which allows housewives to buy independent term insurance plans, irrespective of their spouse’s policy or income status.

The reality is that women spend an average of 299 minutes a day on unpaid domestic services for household members, according to a report by the Ministry of Statistics and Programme Implementation. This makes them the backbone supporting the financial infrastructure of the family, even if they are not directly contributing to finances. Without them, this infrastructure can collapse. If a homemaker passes away, the family faces many financial challenges, including restricted job choices for the husband, potential relocation, and the need for paid childcare. All of these factors directly impact the household's finances. And having a term insurance plan for the homemaker can help the family cope with this financial burden.

Homemakers between the ages of 18 and 50 are eligible for such plans, and they can choose from a variety of options, including mortality and all rider benefits. They can also choose a nominee so that, in the event of their sudden demise, the family can continue to pay expenses like the child's education, loans, and daily expenses, and stay financially secure.

So, ladies, buy a homemaker plan, now. Life is uncertain. And a financial cushion is important, regardless of one's gender, profession, and earning capacity.