Term Insurance for Housewife in India

A housewife or a homemaker is an integral part of the family that manages everything be it the household chores, managing finances or taking care of the family members. The absence of this person can create a void in our hearts and impact our lives. Insurance for homemakers was launched keeping in mind the life of the homemakers and the increasing number of illnesses among women.

How Does Term Insurance for Housewives work?

Term Insurance for housewives is a comparatively new concept in the Indian insurance market. It was introduced considering the emotional and physical labor a housewife does for the family. A housewife manages the daily chores of the house, cooks, and manages the household, which in turn smoothens the lives of all the family members. Her absence leads to disruptions in the daily lives of the members of the family and they might have to hire house helps, cooks, and nannies for assistance which, in turn, can lead to financial burdens on the family. 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.

1. Qualification of the housewife

   A term plan for a housewife asks her to have completed at least graduation to benefit from the plan.

2. 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.

3. Payment of premiums

   The premiums of the term insurance for housewives are paid by the husband on behalf of the homemaker.

4. Choosing the nominee

   Although, the husband is eligible to pay the premiums of the term insurance policy for 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.

Why Term Insurance For Housewives?

Home-makers or housewives even though they do not contribute financially, play a vital role in the running of a family and household. Housewives need to opt for term insurance as it has the following benefits:

1. Financial Security For Your Family

   Term insurance for homemakers ensures financial security to the family of the insured in case of an unfortunate demise of the homemaker. The sum assured paid out to the family will help them to at least survive financially. It doesn’t matter if you earn or not, insurance is a must-have in such cases.

2. High Sum Assured at Affordable Premiums

   Term insurance offers the insured value for money and is quite affordable and is best when bought in the early years of life as the premiums tend to increase with age. Since there is no component called ‘investment’, the entire premium amount paid by the insured goes towards the sum assured.

3. Option to Add Riders

   The insurance policy or plan that is bought by the insured might not have everything that they are looking for, thus an option to add a rider or add-on covers are generally available to the insured. The basic plan would remain the same but an additional feature that is not already covered by the insurance policy can be covered. Some of the 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 illness and they can fully focus on recovering.

4. Tax Exemption

   Having 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.

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