Today, when men and women are playing equal roles in society, whether in terms of work or household responsibilities, why not consider securing a woman's life at an equal spot? Have you ever considered buying term insurance for housewives? If not yet, let’s understand the need with an example:
Mrs Ahuja is a homemaker and bears all the responsibilities, from caring for her children to ensuring everything in the home is in order. On the other hand, Mr Ahuja works hard to provide enough financial support for the family. But let’s consider the odd cases, Mrs Ahuja is no longer due to uncertain health conditions. What about the children and all the other responsibilities left behind? The remaining members will undoubtedly bear the emotional, mental, and added financial expenses.
Now consider Mrs Ahuja is backed with a term insurance plan for housewives, leaving good financial support for her family. Earning or not, a woman can too set a financial backup for her family, considering some conditions. In such cases, considering a term plan for a housewife is your smartest decision.
This article will help you understand the term insurance for housewives, its necessity, advantages, and how it works. Keep reading to learn every single detail.
What is Term Insurance for Housewives?
Term insurance for housewife is life insurance that provides financial coverage to the family if anything uncertain happens with the insured homemaker within the policy term. Term insurances offer a good assured sum at a reasonable premium cost. After the demise of the housewife, the term insurance provides recurring financial support to the family for a specific time or one time or two, as mentioned in the policy terms. Whether you are earning or not, it is essential to have term insurance for housewife as a financial backup.
Why Should a Housewife Buy Term Insurance?
Being a primary home member, the importance of term insurance for housewife is unquestionable. In the current scenario, a woman faces multiple health issues such as heart conditions, PCOD, breast cancer, etc. Under any uncertain demise of your homemaker, term insurance protects the whole family as a shield and helps fight mental, emotional, and financial trauma. Term insurance for housewives is essential for the following reasons:
Financial Security for the Family
Whether you contribute financially to the family or not, your presence is indispensable. In case of the unfortunate demise of a homemaker, term insurance can help your family to provide an extra income source when needed the most. The payout can help your family with both short-term and long-term financial goals.
Affordable Premiums and Better Protection
Term plans for housewives are available at affordable rates. Term plans offer high life cover at lower premium rates and help the housewife protect the family even when she is not there. You will have to pay lower premiums if you buy a policy at an early age.
Buying term insurance makes you eligible for the tax benefits stated under Section 80 C of the Income Tax Act 1961. Consider that tax benefits are subject to change as per the tax laws.
The covers under a term insurance policy can not be customized, but insurance providers offer riders or add-on covers to help enhance the coverage. Assess your needs and select from some available riders such as Accidental Death Benefit Rider, Critical Illness Rider, Accidental Death and Disability Benefit Rider, Term Rider, etc. These riders offer high financial support to the policyholder and her family in case of emergencies.
Saving and Investment
The amount gained as the death benefit from term insurance for housewives can be helpful for investment and fulfilling the critical milestones of life like higher education for children, retirement planning, and other major expenses.
Factors to Consider While Buying Term Insurance for Housewives:
Now that you know why it is essential to get term insurance for housewives, you must be aware of the factors to consider before buying term insurance. Here are some points:
First, you want to check if the sum assured amount meets your family's financial needs to secure the family members. To get an estimate, keep track of current and future expenses. For example, you can check your saving level, plan for loans and liabilities, child education plans, retirement plan, and health conditions, etc. In case of premature demise, the cover should manage the financial crisis without burdening your family.
It is good to know the health conditions of your housewife and her family's medical history so that you are aware of adding any required health rider.
Claim Settlement Ratio
Before buying term insurance for homemaker, consider the claim settlement ratio of the insurance provider. A high claim settlement ratio indicates how reliable and efficient an insurer is in providing financial benefits when the time comes.
Choose the Right Type of Plan
Different types of term insurance plans offer different advantages. You must select an affordable plan that suits your financial expectations considering current and future expenditures.
How Does Term Insurance for Housewife Work?
In India, people generally ignore buying term insurance for housewives, but it becomes an urgent need for financial stability when she is no longer around. But the demand for housewife term insurance is rising in the market, and many insurance companies are considering term insurance for housewives. Generally, someone can only buy term insurance with a continuous flow of income, but term insurance for housewives comes with some eligibility conditions you need to know. These are:
- For the housewife, the least graduation is a mandatory qualification to benefit from the plan.
- The husband's annual income should equal or exceed the five lakhs to buy term insurance for housewife.
- The husband will pay the premium on behalf of the homemaker if she has no source of income.
- It is not mandatory to choose the husband as the nominee. Despite paying the premium himself, the husband can choose any family member as a nominee.
List of Best Term Insurance Plans Available for Housewives:
Here are some of the best term insurance plans available for housewives:
|Term Plan||Age Limit||Policy Term||Sum Assured Minimum||Premium Payment Term|
|SBI Life Smart Humsafar||18 years minimum 46 years maximum||10-30 years||Rs. 100,000||Annual, six-monthly, quarterly, and monthly payments|
|Bajaj Allianz iSecure||18 years min. 60 years max.||28-85 years||Rs. 25,00,000||Annual, six-monthly, quarterly and monthly|
|Aegon Religare iSpouse||21 years min. 60 years max||5-65 years||Rs. 25,00,000||Annual and monthly|
|PNB Metlife Mera Term Plan||18 years min. 65 years max.||10-81 years (excluding entry age)||Rs. 10,00,000||Annual and monthly|
|HDFC Life Smart Woman Plan||Minimum 18 years to Maximum 45 years||10- 15 years maximum||10x - 40x annualized Premium||Annually, half-yearly, monthly, and quarterly|
|Tata AIA Sampoorna Raksha Supreme||18 years to maximum 60 years||67 years maximum||Rs. 50,00,000||Single, Annually, Half-yearly, Quarterly, Monthly|
*Disclaimer: We RenewBuy does not endorse any specific insurance company or insurance product offered by any insurer. This list is just an illustration of the plan offered by different life insurance companies.
Features of Term Insurance for Housewives:
The mentioned are top term insurance features for housewives:
Return of Premium
Traditional term insurance does not provide maturity benefits if the housewife outlives the term period. But these days, some insurance providers offer a return of premium option where the paid premiums will be refunded by the insurer subject to policy conditions. In such cases, the payable premium cost will be impacted. Before buying term insurance, it is suggested to do a good analysis.
The insurers offer term insurance for housewives at an affordable premium cost. If purchased early in her life, the policy term will be longer, and the premium cost will become even more affordable.
Waiver of Premium
The term insurance for housewives provides you with the facility of waiver of premium in case of the demise of your homemaker. This feature is helpful for housewives who are financially dependent on their husbands.
Term insurance for housewives in India provides the feature of additional riders that provide benefits during the policy term in case something misfortune happens to the housewife. The insurer provides a lump sum, fixed regular income, or a combination of both for a defined period.
The term insurance for women comes up with the flexibility of product customisation as per the changed financial needs. For example, you can increase the sum assured amount at any milestone in life. Also, you can change the pay mode (select a limited term or regular payment throughout the tenure) of the premiums and receiving mode (regular or one-time) of the payouts.
With technological advancement, an individual looking for term insurance for homemakers can visit and compare the different plans online. The process of purchasing term insurance, premium payment, and requesting a claim has become even simpler.
Buying Process of Term Insurance for Housewives
You can buy term insurance for housewives from the insurance company’s official website as well as from “RenewBuy.com”. Below are both the buying process of term insurance plans for housewives:
Buying Process of Term Insurance for Housewives
- Visit the insurance company’s official website and click on the “Term Insurance” tab.
- Select the desired plan.
- Fill in all the required information, such as name, mobile number, annual income, occupation, etc.
- Click on the “Buy Now” button.
- Make payment.
- The insurance company will send the policy documents to your email address.
Buy from “RenewBuy.com”
With RenewBuy, you can quickly compare and buy the best term insurance for housewives in the simple steps mentioned below:
- Visit our website and click on the “Life Insurance” tab from the header menu.
- Then, click on the “View Plans” button.
- Enter the required information.
- Compare and pick the best premium plans from the list provided.
- Once the payment is made, you will get your policy documents on your registered email ID.
To make the term insurance for housewives buying process more convenient, connect with one of our RenewBuy POSP advisors and buy the best-suited plan as per your needs.
Earning or not, a housewife delivers numerous duties for the household during her lifetime that need to be recognized. But after her demise, it becomes more challenging for the family to realise and fill the space. While it is true that her place can never be replaced, some financial support can significantly assist the family in her absence. After knowing the benefits, consider buying term insurance for housewives as early as possible. Need help to choose the best term insurance for housewife? Just connect with us at RenewBuy website.