Term Insurance For Housewife

Being a housewife comes with a bag full of responsibilities and selflessly taking care of the family and keeping no expectations in return. The sacrifices and hard work a housewife puts in the family are mostly undervalued in our society.

However, the impact of losing her at any point in life will disturb every person in the family physically, mentally, and emotionally. Hence, a term insurance plan is as important for a housewife as for the earning member of the family.

In this article, we will understand in detail why term insurance is necessary for a housewife and how can it benefit her in the long run. But first, let us briefly understand what term insurance is.

What Is Term Insurance?

Term insurance is the purest form of insurance that you can buy for yourself and secure the future of your family after your untimely demise. It is a life insurance policy that provides financial coverage to the nominee in the policy if the life insured dies untimely.

Among all the life insurance policies, Term insurance offers the highest coverage with minimal premiums. Some companies also cover the partial or permanent disability of the insured. Term insurance is the only plan that comes under pure risk.

Why Should Housewives Buy Term Insurance?

Housewives should definitely invest in a term plan. With a rise in health problems such as breast cancer, PCOD., a term plan can be a necessity nowadays. Term insurance policies with added term riders such as critical illness can also help housewives cover their medical expenditures. 

At the time of the unfortunate demise of your homemaker, the family suffers all kinds of trauma, be it mental, physical, or financial. A term insurance plan for a housewife can support your children’s education cost, health expenses, loans, liabilities, etc. in case of any unfortunate event. Here are a few reasons why investing in term plan for housewives is a wise decision: 

• It provides assistance in long tenure and right financial planning 

• It is ideal in terms of providing a corpus for family members 

• It offers you with large number of opportunities for diversification in investment 

• It helps build a retirement corpus 

• It provides tax saving benefits

Top 5 Insurance Policy Features for Housewives

Here are some of the features and benefits of the term insurance plan for housewives:

1. Financial Security

   Even though a housewife does not contribute financially to the household, still her value is indispensable amongst the family members. In case of an unfortunate event, a term insurance plan comes to rescue financially. The housewife’s term insurance plan can help you support your children’s education, health-related expenses, etc.

   So, in case of the unfortunate demise of the housewife, the payouts from the term plan can help for both immediate as well as long-term needs.

2. Affordable Premiums

   You can purchase a high life cover at low premium rates. Term insurance plans are highly affordable and can provide value for money. And, the early you buy a term insurance policy, the lower would be is premium rate as premiums tend to increase with age.

3. High life cover

   You can purchase a high sum assured amounts at very low premium rates. This is mainly because a term plan is a pure protection policy with no component of investment. The whole premium amount is invested towards the life cover that is paid to the nominee upon demise during the policy tenure.

4. Tax Benefits

   Term Insurance plan offers tax benefits under Section 80C, 80D, and 10(10D) of the Income Tax Act, 1961.

   • Section 80C of ITA: The premium amount paid for a term plan is tax-deductible up to a limit of Rs. 1.5 Lacs per annum. 

   • Section 80D of ITA: The premium amount for a critical illness cover is also tax-deductible up to Rs. 25000 pa. 

   • Section 10(10D) of ITA: The death payout is also free of taxes.

   * Tax benefit is subject to changes in tax laws

5. Rider Benefits

   Insurance providers offer rider benefits or add-on cover benefits for the policyholders to enhance their coverage. Thus, along with a term insurance plan, one can opt for rider benefits as well.

   Some of the riders covered under term insurance for housewives are:

   • Accelerated Death Benefit Rider

   • Accidental Death Benefit Rider

   • Accidental Disability Benefit Rider

   • Critical Illness Benefit Rider

   • Waiver of Premium Rider

   • Income Benefit Rider

What Should You Check Before Buying a Term Plan for a Housewife? 

Here are some of the things you should look into before buying a term insurance plan for housewives: 

• Always check if the sum assured amount is sufficient to secure your family members in case of an unfortunate incident 

• Consider the child education plans, loans and liabilities, family expenses to decide the amount of a term plan 

• Choose a reliable insurer which has a high claim settlement ratio (CSR) and guarantees a quick claim settlement process, so that your dependents do not suffer. 

Wrapping It Up!

Term insurance plan benefits for housewives is a long list. So, go ahead and opt for a right term insurance plan if your family members are majorly dependent on you. While losing someone is a big loss that no one can compensate, but financial planning makes things easier. A high life cover can also help children fulfill their objectives and helping housewives leave a legacy behind for their children.