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Housewives make an invaluable contribution to household and childcare responsibilities. From taking care of kids to running the household smoothly, housewives are pillars of every happy family. But, what if something unfortunate happens to her? In such situation, a term insurance for housewife can help families manage the financial aspects of such responsibilities in the unfortunate event of her passing.
Term insurance for housewife is a type of life insurance policy designed for specially for housewives. It ensures financial freedom by paying the sum assured to the housewife’s family (nominee) in case of housewife’s demise during policy term, in exchange of regular premium payments.
A recent Labor Ministry report showed that women spend an average of 299 minutes daily on unpaid household work. This unpaid work adds economic value to the household and significantly contributes to the family’s finances.
Therefore, as a housewife, you should build a safety net for the family in case of your absence. The remuneration from the coverage can be used to maintain the house, provide for your children’s education, and look after their health and well-being. With term insurance for housewives, you can prevent risking your family’s emotional and financial well-being in your absence.
Buying a term insurance for housewife demonstrates a forward-thinking approach to family financial planning. It helps secure appropriate insurance coverage through the following features:
Unlike whole life or endowment policies, term insurance provides coverage for a specific period. Moreover, it only offers death benefits without any cash value or investment component. Insurance companies, therefore, charge lower premiums for term plans.
You can choose how the insurer will pay your nominees in your absence. For instance, you can select the lumpsum payment or staggered payment mode. This decision must be made keeping in mind the family’s financial needs and preferences.
While a standard term insurance plan may only offer a death benefit, you can add riders to avail financial protection against accidental death or critical illness. You can also select a term plan with return of premium or income benefit riders to enhance coverage based on specific needs.
The policy term represents the duration for which your term insurance remains active, typically ranging from 10 to 30 years. You should align it with your major financial responsibilities and milestones. The ideal duration should cover crucial periods such as children’s education, outstanding loans, and potentially extend until the primary earner’s retirement.
Term insurance plans for housewives present several advantages, like tax exemptions and affordable premiums. Here are some more benefits that term plans offer housewives:
A joint term insurance plan gives the advantage of extending coverage to your husband as an active policyholder. The surviving spouse is, thus, entitled to the insurance payout if one of you passes away, offering a strong financial buffer for your family.
As housewives are non-earning members, a term plan for housewives comes with affordable premiums, being extremely inexpensive while providing a good return on investment.
The maturity proceeds received from a term plan can be used to plan the children’s higher studies, marriage, and related expenses. This creates a stable life for the children and reduces the financial burden on the surviving spouse.
Term insurance for housewife leads to tax benefits under Section 80C of the Income Tax Act 1961 up to ₹1,50,000. Further, if the plan contains health-related riders, you can claim Section 80D deductions for premium payments up to ₹25,000 (₹50,000 for senior citizens). Section 10(10D) also exempts the maturity proceeds of the policy’s nominee.
There are primarily two types of term insurance plans that cater to the needs of housewives. Let us take a quick look at these:
This plan extends coverage to the spouse (usually the breadwinner) while providing financial protection to the housewife during their demise. It ensures that the surviving spouse receives the insurance payout, offering a crucial financial buffer for the family.
A joint term insurance plan covers both spouses under a single policy. It pays out the sum assured upon either spouse’s demise, providing financial security to the surviving spouse and dependents.
These types of term insurance plans are designed to address the specific needs of housewives by ensuring their contributions to the household are financially protected, thereby safeguarding the family’s future in unforeseen circumstances.
While many overlook the need for housewife term insurance, it is a necessity for you if you fall under any of the below categories:
If you are a working spouse, you should prioritize getting term insurance for family members, including your housewife partner. It would provide the family with financial resources to manage all the responsibilities she handles.
Many women temporarily step back from their careers to focus on family responsibilities or childcare. Term insurance during this phase protects their future earning potential and ensures financial security during the non-working period.
When children are dependent, the role of a mother in their upbringing is crucial. Term insurance ensures that in her absence, there are sufficient funds to cover potential childcare expenses, education costs, and other necessary support systems.
The housewife often coordinates household operations and takes care of elderly family members. The replacement costs for these various duties can be substantial. Life insurance for housewife helps maintain the family structure and ensures smooth operations even in her absence.
Identifying the best term insurance for housewife involves considering several key factors:
Ensure the policy offers sufficient coverage to meet future financial needs such as children’s education, household expenses, and outstanding loans.
Choose a plan with premiums that fit comfortably within the household budget, considering the long-term affordability of payments.
Select a policy term that aligns with the financial responsibilities and obligations, typically until retirement or until children are financially independent.
Opt for a term insurance plan from a reputable insurer with a good claim settlement ratio and customer service track record to ensure reliability during claim settlement.
Compare plans from multiple insurers to evaluate premiums, coverage options, exclusions, and benefits to find the most suitable plan for the housewife’s specific needs.
Check if the policy allows for customization, such as choosing the payout structure (lump sum), and if it offers options for partial withdrawal or loan against the policy in case of financial emergencies.
If you want to buy a term insurance for housewife, you can follow these simple steps:
Start by researching various insurance providers and the term insurance plans they offer. Look for plans specifically designed for housewives, as these often come with tailored benefits.
Determine the amount of coverage you need. Consider factors such as the family’s future financial requirements, outstanding debts, children’s education expenses, and other long-term financial goals. For instance, if you are above 60 years of age, you can select term insurance for senior citizens as a housewife.
Ensure that you meet the eligibility criteria set by the insurance provider. While most insurance companies offer term plans for housewives, they may have specific age limits, health requirements, or other criteria.
It is important to collect the required documents for the application process. Commonly needed documents include:
Having these documents ready will streamline the application process.
Visit the insurance provider’s official website and locate the online application form for term insurance. Fill out the form accurately with all necessary details, including personal information, coverage amount, policy term, and nominee details.
Many term insurance plans offer additional riders or add-ons, such as critical illness coverage, accidental death benefit, or premium waiver. Consider these options based on your needs and consider including them to enhance the policy’s benefits.
Before submitting the application, review all the entered details carefully. Make sure all information is correct and complete. This is crucial to avoid any issues during the policy approval process.
After submitting the application, you will be directed to the payment page. Select your preferred mode of payment (credit/debit card, net banking, etc.) and pay the premium amount.
Once the application is processed and approved, the insurance provider will issue the policy document. This document will be sent to you via email and/or post. Review the policy details carefully to ensure everything matches your application.
After purchasing the term insurance plan, it is important to review it periodically to ensure it continues to meet your family’s needs. Update nominee details and coverage amounts if there are significant life changes, such as the birth of a child.
Term insurance for housewife represents a crucial step in recognizing and protecting the invaluable contributions of homemakers to their families. The path forward involves starting early with insurance planning to benefit from lower premiums and longer coverage periods. You should also regularly review and update policies to reflect changing family circumstances. Families should consider combining basic term insurance with appropriate riders to create a safety net that addresses multiple risks and scenarios.
1
The maximum age to buy a term plan for a housewife typically ranges from 55 to 65 years, depending on the insurer’s policies.
2
Yes, a non-salaried person, including housewives, can purchase term insurance based on their spouse’s income or other sources of financial assessment.
3
Generally, term insurance plans do not allow adding a spouse’s life cover to an existing policy, but some insurers offer joint term plans or rider options for spouse coverage.
4
To choose the best term insurance plan for a housewife, consider factors like coverage amount, premium affordability, policy term, additional benefits, and the insurer’s claim settlement ratio.
5
Yes, some insurers offer joint term insurance plans that cover both husband and wife under a single policy, providing financial security for both individuals.
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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.
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
The information herein is meant only for general reading purposes and the views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers. The content has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Recipients of this information are advised to rely on their own analysis, interpretations & investigations. Readers are also advised to seek independent professional advice in order to arrive at an informed investment decision. Further customer is the advised to go through the sales brochure before conducting any sale. Above illustrations are only for understanding, it is not directly or indirectly related to the performance of any product or plans of Kotak Life.
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