Term Insurance Plan for Housewife
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. 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, they are 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 typically be bought by someone who does not generate income, term insurance for housewives comes with specific eligibility conditions. Let's look at 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 lakhs 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 2025
Here are the best term insurance plans for housewives in 2025:
| Plan | Entry Age | Tenure | Monthly Premiums | Unique Features |
|---|---|---|---|---|
| Bajaj Allianz eTouch Term Plan | Minimum Age - 18 years Maximum Age - 65 years | 10 to 81 years | ₹581 per month | Shield for your life to cover Death & Terminal Illness, Early Exit option, Premium Holiday option |
| HDFC Life Click 2 Protect Super Plan | Minimum Age - 18 years Maximum Age - 84 years | Up to 85 years (minus entry age) | ₹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 Plan | Minimum Age - 18 years Maximum Age - 65 years | 5 to 99 years | ₹582 per month | Choose from multiple coverage options, Covers critical illnesses, Smart exit benefit. |
| Max Life Smart Total Elite Protection Plan | Minimum Age - 18 years Maximum Age - 65 years | 5 to 67 years | ₹621 per month | Special exit value, Inbuilt terminal illness cover, Instant Payment on Claim Intimation |
| Tata AIA Sampoorna Raksha Supreme Plan | Minimum Age - 18 years Maximum Age - 65 years | 100 years | ₹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 a sum assured of ₹50 lakhs.
Benefits of Purchasing Term Insurance for Housewife
Here are some benefits of a term insurance plan for housewives:
Income Tax Benefits
Holding term insurance for a housewife offers the following tax benefits.
Section 80C - Premiums paid towards the insurance plan are eligible for tax benefits under Section 80C of the Income Tax Act, 1961, up to ₹1,50,000.
Section 10(10D) - The payout received from the term plan, including death, survival, or maturity benefits, is eligible for tax exemption under Section 10(10D) of the Income Tax Act, 1961.
Helps accomplish future goals
The family member or beneficiary can use the payouts from the housewife's term insurance to fulfill future goals, such as starting a business, buying assets, and clearing debts and other liabilities. The coverage amount can also be used for various financial investment options to create long-term wealth.
Secures child's future
A key benefit of buying a term plan for a housewife is that the payout can help fund her child's higher education, marriage, and other significant life events. It ensures a secure life, preventing financial crises in the long term.
Provides long-term financial protection
Term insurance offers long-term financial protection; policyholders can select a term that suits their needs. A term plan for a housewife can be purchased for a longer tenure to ensure continuous financial protection for the family.
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.
| Type | Description |
|---|---|
| Level Term Life Insurance | It is a type of term life insurance where the premium remains constant throughout the policy tenure. It is not subject to age or other related factors that typically increase premiums. |
| Increasing Term Insurance | It is a type of term life insurance that guarantees that the sum assured will increase at different milestones in life. It considers inflation and the policyholder's future financial needs when determining the sum assured. |
| Decreasing Term Insurance | Decreasing term insurance is the opposite of Increasing Term Insurance. Every year, the coverage amount decreases, and premiums may also adjust accordingly. |
| Term Insurance with The Return Of Premium | With Term Insurance with Return of Premium (TROP), the policyholder can receive a refund of the premiums paid if they survive the policy term. TROP offers dual benefits: protection and a return of premiums, providing comprehensive coverage. |
Why Should You Buy Term Insurance For Housewives?
Although housewives are not earning members, they are responsible for various household chores. The unfortunate demise of a housewife can significantly impact the household mentally, physically, and financially. Therefore, her importance is valued as equal to an earning family member, and buying a term insurance plan for a housewife is crucial to ensure financial security. Here are the 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 helps them cope financially. Regardless of income, insurance is essential in such cases.High Sum Assured at Affordable Premiums
Term insurance offers value for money, is affordable, and is best purchased early in life as premiums tend to increase with age. Since there is no investment component, the entire premium paid goes towards the sum assured.Option to Add Riders
An insurance policy might not cover everything an individual is looking for. Thus, the option to add riders or add-on covers is generally available. Some common riders include critical illness riders, accidental death benefit riders, and waiver of premium riders. With the increasing prevalence of diseases among women, such as PCOS, PCOD, and breast cancer, a critical illness rider can provide financial support, allowing them to focus entirely on recovery.Tax Exemption
Term insurance offers tax benefits, aiding in further savings. Policyholders can claim tax exemption under Section 80C up to ₹1.5 lakhs and under Section 80D for critical illness riders up to ₹25,000.
Things to Consider Before Buying a Term Insurance for Housewife
Here are some factors to consider before choosing a term insurance plan for housewives:
- Always estimate the family's financial needs and choose a sufficient sum assured to ensure continuous financial protection.
- As a general rule of thumb, you can calculate the sum assured online or consider a cover amount that is 8 to 10 times one's annual income.
- Before opting for a term insurance plan for a housewife, consider her health condition and family medical history. This helps determine if a health rider is essential.
- To ensure your dependents receive the financial benefits when needed, compare the insurer's claim settlement ratio.
Conclusion
A homemaker works tirelessly day in and day out. The hard work and effort put in by a homemaker are equivalent to that of multiple working individuals. While no one can replace her, having term insurance can provide crucial financial support to family members and dependents. There are specific term insurance policies available for housewives. Thus, choosing a suitable and budget-friendly insurance plan is important. It is essential to read through the policy terms before purchasing.
If you are unsure which term plan is best for a housewife, you can reach us at PolicyX.com or call us at 1800-420-0269.
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