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Can a Housewife Buy a Term Insurance Plan - All You Need to Know

In this article, we will dive into the key aspects of purchasing a term insurance plan, highlighting what you need to know and how you can benefit from it as a housewife.

  • 7,779 Views | Updated on: Feb 28, 2024

Being a housewife may seem easy. But, the job is just as critical as any of the earning members of the family. From managing the entire household work to taking care of the children and looking after everyone’s needs, a housewife does it all alone and excels at it. Despite being the most vital cog in family management, the role of a houseful is massively undervalued.

As a housewife, you are the backbone of your family. You take care of the home, and manage the household finances. You are the glue that holds your family together, and your absence can leave a significant impact on their lives. That’s why it’s essential for you to secure your future by buying a term insurance plan.

Term insurance for housewives is an insurance policy that provides financial coverage to your loved ones in the event of your untimely death. This coverage can provide your family with a lump sum amount to cover the costs of your funeral, pay off any outstanding debts, and provide a financial cushion for your children’s future.”

What is Term Insurance for Housewives?

Term insurance for a housewife is a type of life insurance that pays out a certain amount to the beneficiary in the event that the housewife passes away within the policy’s term. Term insurance policies offer a higher assured sum at a reasonable premium cost.
Additionally, term insurance policies offer a range of adaptable features that allow for customization to meet specific financial demands. For instance, the proceeds from the term insurance policy may be paid as a recurring income, a one-time sum of money, or a combination of the two. In order to help manage the family’s finances after the housewife suddenly passes away, the family will get a regular income for a specific length of time.

Can a Housewife Buy a Term Plan?

Yes, as a housewife, you can and must buy a term plan to secure your family’s financial future in your absence. As a housewife, you can either buy a term plan individually or opt for a joint term cover with your husband.

In a joint cover, both partners are equal owners of the policy. If anything happens to either of the partners, the surviving partner receives the insurance benefits. This way, both of you can secure yourself and your family against the contingencies that may arise at any time in the future.

Importance of a Term Plan for Housewife

Term plans are the purest form of a life insurance policy. It offers financial protection to your loved ones. It pays the death benefit equal to the sum assured of the policy to the nominee or beneficiary if something happens to you during the policy period.

Additionally, you can purchase a term plan at an affordable premium. Most insurance companies in India offer a rebate on premiums to female buyers. As a housewife or homemaker, when you buy a term insurance policy, you get additional financial coverage for your family.

Even if your family has a stable income, it can get stagnant at any time. So, it is vital to have a solid financial backup for your loved ones so that money never becomes a hindrance in taking care of your family’s needs. Having a term insurance cover for a housewife will ensure that you don’t have financial constraints in fulfilling your children’s needs. It helps you take care of their education, marriage-related expenses, and anything that comes in between.

Term plans come with many attractive features and benefits like disability benefits. If an unfortunate accident leaves the housewife disabled, term insurance can help you take care of the medical expenses and other financial needs that may follow.

Why Should Housewives Buy Term Insurance?

The most crucial person who completes a household is the housewife. She takes care of the house’s finances and other aspects to make it a peaceful, happy place to live. For the reasons listed below, term insurance is crucial for housewives.

Affordable Premiums

Women in India have longer life expectancies than males do. This implies a lesser risk for insurance firms when offering life insurance to women. Women pay reduced premium rates as a result of this. Additionally, the earlier you buy a term plan, the cheaper the premium will be because premiums tend to go up as you get older.

High Sum Assured

You can purchase term insurance for housewives with a big assured sum at incredibly inexpensive charges. This is primarily because a term insurance policy is a fully defensive strategy without any investment components. The entire premium is invested toward the death benefit, which is the promised amount, that will be paid to the nominee in accordance with the conditions of the policy.

Riders for Enhanced Protection

There are many more benefits to term insurance than just life insurance. Riders can be added, such as those for fatal accidents, serious illness, and permanent disability. In fact, riders like the critical illness benefit can provide term plans for housewives and shield them from the expenditures of medical care. Additional riders may benefit the family through better incentives and other benefits.

How can a Housewife Choose the Best Term Insurance?

Now that we know why term insurance for housewives is necessary, let’s move on to some advice for choosing a term insurance for housewives.

Look for the Claim Settlement Ratio

When buying term insurance, you should give the claim settlement ratio significant consideration. The number of insurance claims settled is divided by the total number of insurance claims received by the insurer to determine the claim settlement ratio. The ideal insurer to choose is one with a high claim settlement percentage.

Make Sure You Select a Suitable Cover

The last thing you want to do is get insufficient insurance for your financial needs. So it’s crucial to choose a term insurance plan for housewives that provides the necessary financial protection.

It is highly advised that you review your financial strategies to be sure of that. Be aware of your current savings level and how much more you need. Keep track of your current spending and plan for future ones simultaneously.

What are the Features of Insurance Policy for Housewives?

It’s time to comprehend the main components of the plan now that you are aware of the advantages and significance of term insurance for housewives. Three key components of insurance policy features for housewives are listed below.

Provides Social Security

Although housewives may not make a financial contribution to the household, their contributions in other areas are obvious. Term insurance for housewives can ensure financial security by offering a payout that can rescue a family. The compensation can assist the family in overcoming financial hardship and covering essential future expenses.

Advantages of Taxation

The government of India provides policyholders with a number of tax perks in an effort to encourage people to get life insurance. They are eligible for tax benefits under Section 80C of the Income Tax Act up to a maximum of ₹1,50,000. In addition, Section 10(10D) of the Income Tax Act exempts the dividend provided to the nominee from taxes.

Affordable Premiums, Better Protection

Term insurance for housewives is less expensive than life insurance coverage. This is due to the death benefit provided by term insurance. On the other hand, life insurance provides both a survival reward and a death benefit.

Wrapping Up

A housewife does a number of duties that frequently go unobserved and that the family may only become aware of when they are not present. While it is true that a housewife cannot be replaced if she has term insurance coverage, the benefits from the policy can greatly assist the family in covering the financial void left by her passing.

There are many benefits to term plans for housewives. Buy a reliable long-term plan if your family is really dependent on you. Money eases and improves life over time, even if there is no way to fully compensate for a person’s passing. In addition to helping young people settle down and realise their goals, a sizable sum of money assured can help housewives leave a legacy for their children.

    Key takeaways

    Why Should Housewives Buy Term Insurance?

  • Affordable Premiums
  • High Sum Assured
  • Riders for enhanced protection
  • How Can a Housewife Choose the Best Term Insurance?

  • Look for the Claim Settlement Ratio
  • Make sure you select a suitable cover
  • What are the Features of Insurance Policy for Housewives?

  • Provides Social Security
  • Affordable Premiums, Better Protection
  • Advantages of Taxation

- A Consumer Education Initiative series by Kotak Life

Amit Raje
Written By :
Amit Raje

Amit Raje is an experienced marketer who has worked in various Fintechs and leading Financial companies in India. With focused experience in Digital, Amit has pioneered multiple digital commerce in India. Now, close to two decades later, he is the vice president and head of the D2C business department. He masters the skill of strategic management, also being certified in it from IIMA. He has challenged his challenges and contributed his efforts in this journey of digital transformation.

Amit Raje
Reviewed By :
Prasad Pimple

Prasad Pimple has a decade-long experience in the Life insurance sector and as EVP, Kotak Life heads Digital Business. He is responsible for developing user friendly product journeys, creating consumer awareness and helping consumers in identifying need for life insurance solutions. He has 20+ years of experience in creating and building business verticals across Insurance, Telecom and Banking sectors

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