- Secure your Housewife Today
- What is Housewife Term Insurance?
- Benefits of Housewife Term Insurance
What is Term Insurance for Housewives?
Term Insurance for housewives is a life insurance product specifically designed for Indian homemakers. It provides a guaranteed payout to the nominee in the unfortunate event of the housewife’s death. However, a guaranteed payout is provided against the premium paid to the insurer by the policyholder. This plan is widely known for its comprehensive coverage at low premiums. In addition, policyholders also get the flexibility to customize the plan with add-on riders based on their financial needs.
How Does Term Insurance for Housewife Work?
Although housewives are not earning members, even so, she is responsible for various household chores. Without the assistance of homemakers, life at home becomes complicated for every family member. Keeping this in mind, insurance providers came up with term insurance plans for housewives. Since term insurance cannot be bought by someone who does not generate income, term insurance for housewives comes with a few eligibility conditions. Let us look into them.
| Factors | Requirements |
|---|---|
| Qualification of the housewife | A term plan for a housewife asks her to have completed at least graduation to benefit from the plan. |
| Income of the husband | Since a housewife doesn’t play the role of a breadwinner, the income of her husband is taken into consideration to provide a housewife term insurance. The annual income of the husband should be equal to 5 lacks or more to purchase a housewife term plan. |
| Payment of premiums | The premiums of the term insurance for housewives are paid by the husband on behalf of the homemaker. |
| Choosing the nominee | Although the husband is eligible to pay the premiums of the term insurance policy for a housewife, he is under no compulsion to be chosen as a nominee. The housewife can choose anyone from the family to be a nominee for her term insurance policy. |
Best Term Insurance Plan for Housewife in 2024
Here are the best-term insurance plans for housewives in 2024:
| Plan | Entry Age | Tenure | Monthly Premiums | Unique Features |
|---|---|---|---|---|
| Bajaj Allianz eTouch Term | Minimum Age- 18 years Maximum Age- 65 years | 10 to 81 years | Rs 581-/ per month | Shield for your life to cover Death & Terminal Illness, Exit early, Premium Holiday option |
| HDFC Life Click 2 Protect Super | Minimum Age- 18 years Maximum Age- 84 years | 85 years - Age at entry | Rs 610-/ per month | Choose from multiple coverage options, Option to increase your cover at key life stages, Option to extend the policy term. |
| ICICI Pru iProtect Smart | Minimum Age- 18 years Maximum Age- 65 years | 5 to 99 years | Rs 582-/ per month | Choose from multiple coverage options, Covers critical illnesses, Smart exit benefit. |
| Max Life Smart Total Elite Protection | Minimum Age- 18 years Maximum Age- 65 years | 5 to 67 years | Rs 621-/ per month | Special exit value, Inbuilt terminal illness cover, Insta Payment on Claim Intimation |
| Tata AIA Sampoorna Raksha Supreme | Minimum Age- 18 years Maximum Age- 65 years | 100 years | Rs 650-/ per month | Return of premiums, Whole life coverage, Increase life coverage at milestones |
The above premiums are for a 30-year-old housewife for a policy tenure of 30 years and the sum assured is Rs 50 lakhs.
Benefits of Purchasing Term Insurance for Housewife
We’ve listed some of the benefits of the term insurance plan for housewives:
Income Tax Benefits
If you hold term insurance for a housewife, you’ll get the following tax benefits.
Section 80C - The premium paid towards the insurance plan will be eligible for tax perks based on Section 80C of the Income Tax Act, 1961, up to ₹1,50,000.
Section 10(10D) - The coverage obtained from the term plan, including death, surviving, or maturity benefits will be eligible for the tax exemption benefit under Section 10(10D) of the Income Tax Act, 1961.
Help accomplish future goals
The family member or beneficiary can use the payouts from the term insurance for the housewife to fulfill future goals, such as starting a business, buying assets, and clearing off debts and other liabilities. However, the coverage amount can also be used in different sorts of financial investment options to create wealth in the long term.
Secure child’s future
The most beneficial factor of buying the term plan for a housewife is the payout can help pay for her child’s higher education, plan for their marriage, etc. It’ll ensure a secure life without experiencing a financial crisis in the long term.
Long-term financial protection
Term insurance is a long-term investment; policyholders can select the right term for their needs. However, the term plan for a housewife can be bought for a longer tenure to ensure financial protection for the family at any time.
Types of Term Insurance for Housewives
There are four types of term insurance plans for housewives. They can select the term insurance plan that best fits an individual family’s budget and requirements.
| Level Term Life Insurance | It is a type of term life insurance where the premium remains constant throughout the policy tenure. However, it is not subject to age with the increase in age or other related factors. |
|---|---|
| Increasing Term Insurance | It is a type of term life insurance that guarantees that the sum assured will increase at different milestones in the life. It considers the inflation and the policyholder’s financial needs that may arise in the future, and the sum assured is decided. |
| Decreasing Term Insurance | Decreasing term insurance is the opposite of Increasing Term Insurance. Every year, the coverage amount goes down, and as the coverage amount changes, so do the monthly premiums. |
| Term Insurance with The Return Of Premium | In Term Insurance with The Return Of Premium, the policyholder can receive a return of the premium amounts at the end of the term. It’s clear that TROP can bring a sense of overall protection with dual benefits under a single-term plan. |
Why Should You Buy Term Insurance For Housewives?
Although housewives are not earning members, even so, she is responsible for various household chores. However, the uncertain demise of a housewife can trigger the whole household mentally, physically, or financially. Therefore, her importance is valued as equal to an earning family member, and buying a term insurance plan for a housewife is mandatory to ensure extra financial security. Here are the following key features of buying term insurance for housewives.
Financial Security For Your Family
Term insurance for homemakers ensures financial security for the insured’s family in case of the homemaker’s unfortunate demise. The sum assured paid out to the family will help them survive financially. It doesn’t matter if you earn or not; insurance is a must-have in such cases.High Sum Assured at Affordable Premiums
Term insurance offers the insured value for money, is quite affordable, and is best when bought in the early years of life as the premiums tend to increase with age. Since no component is called ’investment’, the entire premium amount the insured pays goes towards the sum assured.Option to Add Riders
The insurance policy or plan bought by the insured might not have everything they are looking for. Thus, an option to add a rider or add-on covers is generally available to the insured. Some riders that can be added are critical illness riders, term riders, childcare benefits, etc. With the increasing no. of diseases among women, such as PCOS, PCOD, breast cancer, and more, a critical illness will help the insured financially in dealing with the disease, and they can entirely focus on recovering.Tax Exemption
Term insurance can give the insured tax benefits and help with further savings. The policyholder can claim tax exemption under section 80C up to a limit of 1.5 lakhs and section 80D for critical illness riders up to 25,000.
Things to Consider Before Buying a Term Insurance for Housewife
We’ve listed some factors that you must look into before choosing a term insurance plan for housewives:
- Always estimate the family’s financial needs and choose a sufficient sum to ensure financial protection for the family at any time.
- According to the general thumb rule, you can calculate the sum assured amount online or consider the cover amount to be 8 to 10 times one’s annual income.
- Before opting for a term insurance plan for a housewife, consider her health condition and her family medical history. It helps you to determine if a health rider is essential.
- To obtain the financial benefits when the time comes, compare the insurer’s claim settlement ratio so that your dependents do not suffer.
Conclusion
A homemaker works day in and day out. The amount of hard work and effort put in by this single person amounts to multiple people working. While no one can replace her, having term insurance can financially help the family members and people dependent on her. There are only a few insurance policies available for housewives. Thus, opting for insurance that is suitable and budget-friendly is important. It is necessary to read through the terms of the policy before buying it.
If you are confused about which term plan is best for a housewife you can reach us at PolicyX.com or call us at 1800-420-0269.
Term Insurance for Housewife: FAQs
1. I am a housewife. Can I buy term insurance?
Yes, as a housewife, you are eligible to buy a term insurance policy meant for a housewife.
2. How much qualification do I need for term insurance for housewife?
You are eligible for a term plan for housewife if you have completed your graduation.
3. I do not earn. How can I get a term plan?
A term plan for housewife takes the income of the husband into consideration in case the housewife is not earning.
4. What is the income eligibility to buy housewife term insurance?
The spouse or husband of the housewife should have an income of 5 lakhs per annum to purchase term insurance for housewife.
5. Who will pay the premiums for term insurance for housewife?
The spouse/husband pays the premiums for a homemaker’s term plan.
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Written By: Himanshu Kumar
Himanshu is a seasoned content writer specializing in keeping readers engaged with the insurance industry, term and life insurance developments, etc. With an experience of 2 years in insurance and HR tech, Himanshu simplifies the insurance information and it is completely visible in his content pieces. He believes in making the content understandable to any common man.
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